Legal Question in Real Estate Law in Kentucky

I have a small second home in Kentucky and I own it with a partner. He has been knocked down about half of his hours at work and we can no longer afford the home. We have tried to sell it but can't. We have had an offer of 20,000 on it but owe 32,000. I have tried to get short sale done and my bank has not sent the paperwork yet. Would it be better to shortsale or foreclose and would we owe the deficiency amount? Thanks, Rich


Asked on 5/12/11, 10:26 am

1 Answer from Attorneys
Andrea Welker Welker Law Office

It would be better on your credit to do the short sale and have them forgive as much of the excess as possible, although honestly, if you're very behind on your payments, it might not matter either way to your credit. In foreclosure, it will likely sell at master commissioner's sale for 2/3 of the appraisal value, and that might not be enough to cover your loan, leaving you with still owing the bank. Have you exhausted your options with the bank to refinance or restructure your loan to avoid foreclosure?

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Answered on 5/19/11, 9:51 pm


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