Michael Schmidt’s Answers

Michael Schmidt

Spokane Commercial Real Estate Attorney.

Contributor Level 2
  1. Do I need an attorney to give my keys over to a bank and walk away from our house

    Answered almost 2 years ago.

    1. Michael Schmidt
    1 lawyer answer

    The presence of additional liens on the property complicates this process because you own the home, but five others have an interest in it -- an interest that they may not yet be ready to give up without some payment. Therefore, even if you negotiate a short sale with the lender holding the first position deed of trust, the other four lenders will need to sign off on it and release their interest. The first-position lender will likely want to foreclose to eliminate the other liens. If you...

  2. 80/20 Original Purchase Loan in Idaho

    Answered almost 2 years ago.

    1. Michael Schmidt
    1 lawyer answer

    If a first position deed of trust has completed is foreclosure, and the bid was insufficient to satisfy both the first and second position deeds of trust, then the lender may pursue the liability on the second loan that was secured by the second position deed of trust. This is because the second position deed of trust was eliminated in the foreclosure, thus leaving the second note (the 20%, presumably) unsecured. See Idaho Code Sections 45-1503(1)(c) and 45-1508. Knowing that the lender can...