Legal Question in Real Estate Law in Virginia

I have a house in Virginia. I can no longer afford the mortgage. I owe $121,000.00, and I've asked two real estate agents and a broker about the value. I would lose about $20,000.00 if I put the home up for a short sale.
My assets are a 401k worth $45,000.00, $2,500.00 liquidity in a life insurance plan, $10,000.00 in cash.
My debts are $11,000.00 in credit cards.
If I stop paying the mortgage and go to foreclosure, what can Citimortgage do in regard to coming after me for differences?
Thank you!

Asked on 4/30/11, 5:15 am

Michael Hendrickson Law Office Michael E. Hendrickson

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A short sale would require the agreement of the lender and as a condition

you should require that they not pursue you for any deficiency or loss

that they might incur resulting from the sale.

However, if you decided to just allow the property to go into foreclosure

and your mortgage(deed of trust) is a recourse instrument, the lender

could pursue you for a judgment for the deficiency that might result from

the auction of the property.

Answered on 4/30/11, 8:17 am

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