Can my mortgage lender come after me if I short sale my house?
Written By: admin on December 17, 2009
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I am thinking about small selling my home. Can my mortgage lender come after me if I small sale my house? Can I have AZ state statues and laws as proof?
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Tags: mortgage lender, mortgage lender, proof, state statuesTags: mortgage lender, proof, state statues
By definition the lender must agree to the small sale or it will not take place – you cannot just small sale yourself and hope the lender doesn’t mind. Usually the terms of the small sale include resolution of the issue of recourse – the ability of the bank to seek any loan losses from you personally. It depends upon state law. You need to consult a real estate attorney in your area. In addition you need to know if the bank will issue an 1099 which will leave you showing the loan loss as income and hence own income taxes on that income. (remember if you owe say 100K that you don’t have to pay back that is income to you)