If there is a foreclusure of deed in lieu on a second home, can they come after the primary residence?

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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 10 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.


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