My mobile home has a balance owed probably more than my home is worth. If I chose to short sale, am I allowed to keep assets, such as a savings account and annuity without having to use it to pay on the mortgage? I've been paying on this home for 10 years and still owe about $26,000. Thank you
Construction / Development Lawyer
The answer depends on what deal you can strike with the lender. In a "short sale", the lender agrees to take less than is owed to release its lien on the property so that the property can be sold for less than is owed the lender. The lender will most likely require that you submit complete financial records as part of your request for approval of a short sale alone with an appraisal or other evidence of the value of the asset. The lender will then decide what it will offer to do as to a short sale. The lender may reject the request, if you have other assets, could demand that you pay more than the sale price of the short sale asset, or could allow the short sale and still sue you for the deficiency - the difference between what it receives from the short sale and what you owe. The lender does not have to agree to a short sale.
2 lawyers agree
Yes, you would be able to retain your other assets. A short sale in essence is an agreement by the mortgage lender that they will accept LESS than the amount owing on the loan. They would need to approve the sale, in order for you to get out from under the debt.
***Please be sure to mark if you find the answer "helpful" or a "best" answer. Thank you! I hope this helps. ***************************************** LEGAL DISCLAIMER I am licensed to practice law in the State of Michigan and have offices in Wayne and Ingham Counties. My practice is focused in the areas of estate planning and probate administration. I am ethically required to state that the above answer does not create an attorney/client relationship. These responses should be considered general legal education and are intended to provide general information about the question asked. Frequently, the question does not include important facts that, if known, could significantly change the answer. Information provided on this site should not be used as a substitute for competent legal advice from a licensed attorney that practices in your state. The law changes frequently and varies from state to state. If I refer to your state's laws, you should not rely on what I say; I just did a quick Internet search and found something that looked relevant that I hoped you would find helpful. You should verify and confirm any information provided with an attorney licensed in your state. I hope you our answer helpful!
1 found this helpful
Estate Planning Attorney
I agree with my colleagues and would consider the obligations to the mobile home park, if any, and whether a short sale is typical with a mobil home, rather than attachment or some other form of satisfaction.
It would be wise to talk with an attorney that is local about the details of your situation.
Best of luck!
1 found this helpful
1 lawyer agrees
State, Local, and Municipal Law Attorney
As has been stated by the previous attorneys, a short sale is an agreement with your lender where the lender accepts less than what is owing on the loan and released its lien/mortgage. Whether the lender gives you a complete release from the debt is something you need to resolve with your lender. A good lawyer can help. John W. Drury
So there is no misunderstanding, this answer does not create an attorney/client relationship and you cannot presume that I am your lawyer or that my advice can be relied upon in any way other than for information only. You will not become my client unless and until you retain me.