Legal Question in Real Estate Law in Oregon

Lets make this short and sweet, Laid-off, on UE making about 60% of what I made last year can't afford the house anymore two options short sale or Deed in Lieu I have two questions.

1. can my Home loan lender come after me for the difference if I do Deed in Lieu or Short Sale.

2. Any chance I can get approved for a Loan so I can still have a place to live? looking at homes in the 90k to 120k range my current home was 170k


Asked on 3/31/10, 5:56 am

1 Answer from Attorneys
Daniel Meek Daniel W. Meek

First, a feature of a short sale or a deed in lieu is that the lender agrees not to come after you for the deficiency (difference between what you owe and what the house sells for).

Second, Oregon has an "anti-deficiency statute," which states that, if the lender forecloses the mortgage, the lender cannot come after you for the deficiency. The 2010 Oregon Legislature amended that so it now applies also to second mortgages made at the same time as the first mortgage and involving the first mortgage lender or any associated firms. If you have additional mortgages on your home, created after you bought it, those lenders may come after you for their deficiencies.

As to whether you can get a new loan approved, that is not a question for a banker, not a lawyer.

Read more
Answered on 4/05/10, 3:59 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Oregon