If there is a foreclusure of deed in lieu on a second home, can they come after the primary residence?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If there is a foreclusure of deed in lieu on a second home, can they come after the primary residence?
Listed for sale $30,000 less than balance owed.
Asked on October 3, 2011 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you signed a deed in lieu of foreclosure concerning a second home that was not your primary residence, there is a possibility that the lender may not come after you if you simply transferred title over to the lender and there was no mention as to you having to pay any shortfall on the property's sale to occur at a later date.
Personally, I suspect that the lender will have a hard time showing that at the time of the recording of the deed in lieu of foreclosure that the loan for the property exceeded its fair market value unless the actual deed in lieu of foreclosure that you signed (or any other document regarding the deed in lieu of foreclosure) states such.
To be on the safe side, you should consult with a real estate attorney about the deed in lieu of foreclosure and have him or her personally review that document as well as all others that you signed with the lender recently.
Good luck.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.