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I think he means if you get foreclosed, the bank has no recourse beyond just taking your house. If you sell your house, then obviously you're responsible for th
by ojbyrne 12y ago
I think he means if you get foreclosed, the bank has no recourse beyond just taking your house. If you sell your house, then obviously you're responsible for the difference.
- olentangy 12y agoSounds like a short sale. http://en.wikipedia.org/wiki/Short_sale_(real_estate) http://en.wikipedia.org/wiki/Short_sale_(real_estate)
- seanflyon 12y agoThat seems odd. Why would anyone sell their house for less than their mortgage when they can just walk away and not owe anything?
- dragonwriter 12y ago> Why would anyone sell their house for less than their mortgage when they can just walk away and not owe anything? Credit and taxes -- a short sale is, though damaging, less so to ones creditworthiness than a foreclosure, further, the entire amount of the unpaid principal (in either the short-sale or the foreclosure/surrender case, but foreclosure sales generally return less than a short sale with positive owner involvement would) is taxable as income.