What is the lender’s recourse if I return real property?
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What is the lender’s recourse if I return real property?
I have 3 properties. 2 are under water – a vacation home and main residence; the third home is a rental with a little bit of equity. I have some money in the bank and a retirement plan. If I return the vacation home and keep the other 2, can the lender come after any of the equity or monies I hold; all 3 properties are under same lender?
Asked on October 1, 2010 under Real Estate Law, California
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
I think that you need to go and seek help from an attorney in the area. I am unclear by what you mean by "returning" the vacation home and what you mean by "underwater." Do you mean literally or figuratively? Assuming that all are above water and in good shape other than financially, you can try and do a number of things. Modify the mortgage on the properties to make the monthly payments easier. You can try and sell the vacation home is what is known as a "short sale" but make sure that the bank will not come after you for a deficiency judgement. Or you can negotiate giving the banka deed in lieu of foreclosure of the property and request that a deficiency judgement not be obtained. But seek help with this. Especially since all the mortgages are with the same bank. They have some leverage here. Good luck.
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