Legal Question in Real Estate Law in California

Re: Short Sales with Two Loans in Northern California

I am sorry that I cannot help you with this, but I am in Southern California. I can, however, tell you that you will run into issues with a short sale given your level of income and assets. Short sale means that the bank is going to accept less than they are owed, thus taking a loss on the loan. They are not going to be very sympathetic where theoretically, you may have assets and income that would cover some or all of their loss. Its not unheard of for a seller to have to put cash into an escrow to close it (selling at a loss). Further, in many cases, short sales do not relieve you of the obligation to repay the amount the bank is shorted - they generally reserve that right in their approval. They are simply agreeing to let you sell the collateral without a full payoff. You definitely need to consult with an experienced, local attorney.

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