Legal Question in Credit and Debt Law in Indiana

home foreclosures

what are ramifications of letting a home go back to the mortgage holder ? especially if it is the secondary home being used as a rental and not lived in by the owners.


Asked on 4/21/09, 3:04 pm

2 Answers from Attorneys
Gregory Coleman Coleman Law Office

Re: home foreclosures

If you let the home go back, once the final process of sheriff sale or deed in lieu, you will most likely be liable for the difference from the purchase price. You can try to short sell the property- sometimes the balance is forgiven in this circumstance but not always. You would be better off with a short sale than a sheriff sale or deed in lieu.

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Answered on 4/30/09, 10:40 pm
Samuel Hasler Samuel Hasler

Re: home foreclosures

It depends on the mortgage language because technically you might liable for any difference between home value and debt owed. You will find no difference between letting the house go back and foreclosure on your credit report.

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Answered on 4/21/09, 4:51 pm


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