I have called the bank and they say I can do a "short sale." But they won't say what happens if I get an offer and it's not enough to cover the payoff. They said I will just have to fax them the offer when I get it and they'll decide whether to take the offer and what will happen next. Can they force me to pay the remainder? (probably at least $20K) Can they garnish my wages even if I can't pay my other bills? Why wouldn't I just quit paying and foreclose if my credit will be trashed anyway? Do I need an atty?
Answer:
By all means, speak with a tax professional.
If you owe, and do a short sale, you will have a tax consequence.
Why don't you read some of the following Websites:
http://real-estate.lawyers.com/residenti.
http://www.timesdispatch.com/servlet/sat.
http://www.stltoday.com/stltoday/realest.
If there is a shortfall, they can seek a deficiency judgement against you personally. It is possible that they can put liens on other assets or try to garnish your wages.
The possibilities depend on the state that you are in. I would advise you to talk to an attorney to find out for sure what the ramifications are for the potential scenarios.
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