short sale or foreclosure? - Need consensus from experts

[ultimate4799]

All,
I'm hoping I can get an advise from our attorneys here at loansafe. Below is a quick background of my status :

- bought home for $700k(80/20 financing) in 2005 at CA. Home built in 2001.
- refied on early 2007 and owed $640k(Wells Fargo) and $120k(SLS) which makes both recourse
- Got NOD mid of June 2009 from Wells Fargo
- House valued at $474k only per zillow

A realtor I know told me short sale will help me avoid foreclosure. Concerns I have though is house(build in 2005-2006 and bigger size than mine) in my area is either in foreclosure or short sale listed only at $400k.

Now, my questions are the following:

1.) If I go thru short sale route, will either of my lenders seek deficiency judgment on me since $400k is $240k short off the 1st loan(WFB)? I worry I need to deal with 2 DJ in next few years. Please help on here.

2.) Is foreclosure better option since after the 1st lender(WFB) foreclosed on property, it can no longer seek deficiency judgement on me? Also, what should be a good tactic on 2nd(SLS) to negotiate for settlement for less?

I appreciate any inputs specially from our good friends / attorneys.

[Nathan Fransen Esq.]

ultimate4799,

Great questions and you are smart for looking into this now. Short sales can actually do more harm than good. You ask some questions that would be beyond the scope of a public forum, but i can share somethings with you.

First, it likely that your 2nd lender is the only one that would have a claim for a deficiency in either a short sale or foreclosure. Some lenders are easier to negotiate with than others, but be careful in what you tell them or provide them at this point, including during a potential short sale.

Second, It would be a great investment for you to spend an hour or two with a licensed attorney than can not only answer your questions, but also provide you with a written opinion letter involving your potential exposure in both cases. This will give you some peace of mind and help in forming your decisions.

Third, the realtor gets paid when the deal closes. Keep that in mind when they tell you what you should do.

Best Regards,

[ultimate4799]

Hi Nathan,
Thanks much for the inputs even if my questions are beyond public forum(sorry, didn't realized that).. Actually, I'm from northern CA and in seek of an attorney to discuss my case particularly and options I may have. Since I'm a loansafer, I like to seek legal advise from your Law office. Please advise me how to move forward. Will you be able to take clients from Northern CA? Do you have any office or affiliates around bay area? I appreciate it and looking forward to hear from you and your team. Can I schedule appointment online? Just wanna make sure you know it is me - ultimate4799 from loansafe when an appointment was scheduled to further discuss my case..

[Nathan Fransen Esq.]

ultimate4799,

Feel free to call my office anytime. We have several knowledgeable attorneys that can assist. We try to remain active on this forum to at least offer suggestions that may point people in the right direction, but sometimes a more personalized consultation is necessary. You can reach us at 951-520-9684, or 888-756-2652.

Best Regards,

[tomser]

Originally Posted by Nathan Fransen Esq.

ultimate4799,

Feel free to call my office anytime. We have several knowledgeable attorneys that can assist. We try to remain active on this forum to at least offer suggestions that may point people in the right direction, but sometimes a more personalized consultation is necessary. You can reach us at 951-520-9684, or 888-756-2652.

Best Regards,

hello nathan

I have 3 houes one primary and 2 rentals to be loan modification i just wonder to see if we can chat on line and leading to make appointment

i live in bay area in northen cal

tomser

[Nathan Fransen Esq.]

tomser,
Feel free to email me anytime. nfransen@loanlaw.net

Thanks,