Any advice is appreciated!

Welcome to the LoanSafe Forums!
Get free mortgage help today. Since 2007, the LoanSafe forums have helped millions of homeowners over the last 13 years either save their homes with a loan modification, obtain a short sale, forbearance, or walk away legally from their underwater mortgages.
Register for FREE

adixon8899

LoanSafe Member
Oct 30, 2020
1
0
0
My husband bought a condominium 2 years before we got married, in May 2017. We got married in Aug 2019. We made an offer on a new house in Sept 2020. It was a non contingent offer and it was accepted and scheduled to close Nov 2020. We thought we would be able to sell the condo he bought in 2017 quickly but that has not yet happened. It has been on the market for 30 days now and we have not had a single offer. We have to start paying for the new mortgage from Jan 1 2021. We planned to pay 2 mortgages for a period of 3 months which will already be very difficult for us. Now, if we are not able to sell the condo within 3 months and if we choose to walk away from the Condo mortgage, my question is 1. Could the lender come after us for any deficiencies? 2. I have a bank account I had before marriage and also a stock account from before marriage. Could the lender come after those? given that the condo was bought before our marriage and my name is not on the title or any documents for the condo? The reason I ask is, I would like to protect some assets for ourselves from this mess we seemingly have gotten ourselves into. Any advice is appreciated.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,854
467
1,000
49
Southern California
www.loansafe.org
Hello,

It depends on your state - it is either judicial or nonjudicial. Also, on how much you owe, and how much the home sells for at foreclosure.

If there is still money owed after they foreclose, then you may owe what is called a deficiency and in some states, a lender can obtain a personal judgment, called a “deficiency judgment,” to go after you for monies owed on the mortgage from your other assets or income.

What state are you in and how much do you owe compared to what it is on the market for?
 

Jzone

LoanSafe Member
Jun 20, 2017
214
29
28
70
My husband bought a condominium 2 years before we got married, in May 2017. We got married in Aug 2019. We made an offer on a new house in Sept 2020. It was a non contingent offer and it was accepted and scheduled to close Nov 2020. We thought we would be able to sell the condo he bought in 2017 quickly but that has not yet happened. It has been on the market for 30 days now and we have not had a single offer. We have to start paying for the new mortgage from Jan 1 2021. We planned to pay 2 mortgages for a period of 3 months which will already be very difficult for us. Now, if we are not able to sell the condo within 3 months and if we choose to walk away from the Condo mortgage, my question is 1. Could the lender come after us for any deficiencies? 2. I have a bank account I had before marriage and also a stock account from before marriage. Could the lender come after those? given that the condo was bought before our marriage and my name is not on the title or any documents for the condo? The reason I ask is, I would like to protect some assets for ourselves from this mess we seemingly have gotten ourselves into. Any advice is appreciated.
Is the new home in both of your names? If the bank approved the new mortgage knowing that you still had the old condo, they must of thought your income was sufficient to cover both payments?

There are a few alternatives to foreclosure which you should consider. If you already were planning of paying 2 mortgages for 3 months, you might as well plan on paying for 6 months. This is much better than stopping payments and losing it to foreclosure.

Also, I would consider lowering your selling price on the condo. If you have a foreclosure, in most states you will still be responsible for any deficiency between selling price and what is owed on mortgage.

Look into a short sell or even renting it out?