Legal Question in Real Estate Law in California
I have a buss.acct. With my bank I have my mortgage at and money in bank. My home is under by 75k. Will they still accept a shortsale. And can I use a medical excuse and my son goes to school on the other side of the city.and can they come after me
2 Answers from Attorneys
If your lender participates in the HAFA program, you may attempt to get a short sale approval.
Generally, to be eligible under that program, this must be an owner-occupied property. The loan is no more than $729500. You must demonstrate financial hardship.
If your income has decreased or your expenses unexpectedly went up, you can demonstrate hardship.
No, if they agree to allow short sale, they can't come after you in California.
The nice thing about HAFA is that you get $3,000 in moving costs after the escrow closes.
Also, if you have a second lien, it is important to consult your CPA on tax issues. Debt forgiveness may be taxable in some but not most instances.
Conventional wisdom is that you should not keep large amounts of cash in a bank to which you are indebted and possibly in default under a mortgage.
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