Re: Sale of 2002 MH - Posted by Dave Swett-CA
Posted by Dave Swett-CA on July 23, 2003 at 12:06:32:
Foreclosure and Short Sale are two different sides of the same coin.
foreclosure means that you hve walked away from the deal and the lender is forced to take legal action against you and will probably file every kind of derog that they can on your credit report.
There is a possibility that they might file a deficiency judgment if they do a court action–but this is unlikely. Really you are in the middle of the legal system and do not have any knowledge and info as to your standing. It might be worth your time to spend the bucks for some legal counsel from a REAL ESTATE attorney.
A short sale means that you are trying to solve your problem to the best of your ability without forcing the lender to take action–yet. I like your comments about making an appraisal (get it in writing or document it somehow), save all of your paperwork showing all of your offers, etc. And communicate to the lender what you are doing and ask for their co-operation in making the short sale.
Your goal will be to sell the MH and to have the lender agree not to report a derog on your credit. The derog notice is an action that is totally controlled by the lender and you can negotiate with them so that they will not make that report.
Even if you end up on with a deficiency from the sale, you can still negotiate with the lender for some payment plan until the debt is gone–like having to pay alimoney to your spouse. this is still better than doing a walk away.
that credit report ding will follow you for what seems like forever (7 years) and it will cost you extra for future financing of autos, TVs, rental applications, house purchase, on and on. It makes no diff whether you move 100 miles or 3000 miles, get divorced, remarried, that ding will follow you.
Thus, it is worth having a knowledgeable attorney give you advice and talk to the lender on your behalf.
Good luck with the adventure of your life.