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Short Sale (two types) and Bankruptcy
Sofya,
First, you'll need to determine whether Nevada is a "recourse" or
"non-recourse" state, meaning, whether the the lender can seek a deficiency
judgment against the debtor if they walk away from their mortgage.
Second, you need to read up on the Nevada "One-action" statute. I've
attached a little something to get you started.
Question 1: The consumer is better off if the lender accepts a short sale
because in a short sale, the lender is agreeing to the lesser value of the
home and will likely cancel the debt. You may want to consult with our
local large law firm, Price Law Group about
that and see if they can assist a Nevada debtor and from the looks of their
website they might be able to.
The debtor will not get to choose payment in full over a deficiency because
that is based on the state laws. [see attachment]
Question 2: If the debtor files bk and states their intent is to surrender
the property then a short sale is a moot point and will only serve to line
the pockets of some mortgage broker or law firm assisting the debtor in the
short sale. Under bk, all liability is then eliminated, permanently,
through the discharge injunction.
And now for my disclaimer: I am a young lawyer and you get what you pay
for. Any more experienced members, please correct me if I am off here.
I hope this helps.
Christine
On Thu, Jun 10, 2010 at 10:24 PM, sofiya wrote:
>
>
> Hello everyone:
>
> A potential client owns a property in Nevada and is behind by appx 5
> months. The property is upside down and PC does not want to retain it.
>
> Question #1: is short-sale better than foreclosure? Why? Why not? Does the
> client have an option of choosing the "payment in full" short sale over the
> "deficiency judgment" type which would allow the lender to go after the
> borrower for the deficiency? If the "payment in full" option is provided and
> assuming the debtor has no other debt, will she be released from any and all
> liabilities re the house without filing a bk?
>
> Question #2: Assuming bk is required, should she file for bk first and then
> do the short-sale?
>
> Question #3: if she decides to let it go into foreclosure, does it really
> matter whether the bk is filed before or after the foreclosure? the property
> is in Nevada and my research shows that NV is not an anti-deficieny state
> and the foreclosing lender has 3 months within which to obtain a deficiency
> judgment.
>
> Any help is greatly appreciated.
>
> Sofya Davtyan, Esq.
>
>
>
Best Regards,
Christine A. Wilton
Principal Attorney
Greifendorff Law Offices
333 City Boulevard West, 17th Floor
Orange, CA 92686
Office: 800-861-0786
Cell: 562-824-7563
Fax: 714-938-3255
Email: attorneychristine@gmail.com
Web: www.greifenlaw.com
Blog: www.losangelesbankruptcylawmonitor.com
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Sofya,
First, you'll need to determine whether Nevada is a "recourse" or "non-recourse" state, meaning, whether the the lender can seek a deficiency judgment against the debtor if they walk away from their mortgage.
Second, you need to read up on the Nevada "One-action" statute. I've attached a little something to get you started.
Question 1: The consumer is better off if the lender accepts a short sale because in a short sale, the lender is agreeing to the lesser value of the home and will likely cancel the debt. You may want to consult with our local large law firm, Price Law Group about that and see if they can assist a Nevada debtor and from the looks of their website they might be able to.
The debtor will not get to choose payment in full over a deficiency because that is based on the state laws. [see attachment]
Question 2: If the debtor files bk and states their intent is to surrender the property then a short sale is a moot point and will only serve to line the pockets of some mortgage broker or law firm assisting the debtor in the short sale. Under bk, all liability is then eliminated, permanently, through the discharge injunction.
And now for my disclaimer: I am a young lawyer and you get what you pay for. Any more experienced members, please correct me if I am off here.
I hope this helps.
Christine
On Thu, Jun 10, 2010 at 10:24 PM, sofiya <s_dav2005@yahoo.com> wrote:
Hello everyone:A potential client owns a property in Nevada and is behind by appx 5 months. The property is upside down and PC does not want to retain it. Question #1: is short-sale better than foreclosure? Why? Why not? Does the client have an option of choosing the "payment in full" short sale over the "deficiency judgment" type which would allow the lender to go after the borrower for the deficiency? If the "payment in full" option is provided and assuming the debtor has no other debt, will she be released from any and all liabilities re the house without filing a bk?
Question #2: Assuming bk is required, should she file for bk first and then do the short-sale?Question #3: if she decides to let it go into foreclosure, does it really matter whether the bk is filed before or after the foreclosure? the property is in Nevada and my research shows that NV is not an anti-deficieny state and the foreclosing lender has 3 months within which to obtain a deficiency judgment.
Any help is greatly appreciated. Sofya Davtyan, Esq.
-- Best Regards,Christine A. WiltonPrincipal AttorneyGreifendorff Law Offices
333 City Boulevard West, 17th FloorOrange, CA 92686Office: 800-861-0786Cell: 562-824-7563Fax: 714-938-3255Email: attorneychristine@gmail.com
Web: www.greifenlaw.comBlog: www.lo
The post was migrated from Yahoo.
Hello everyone:
A potential client owns a property in Nevada and is behind by appx 5 months. The property is upside down and PC does not want to retain it.
Question #1: is short-sale better than foreclosure? Why? Why not? Does the client have an option of choosing the "payment in full" short sale over the "deficiency judgment" type which would allow the lender to go after the borrower for the deficiency? If the "payment in full" option is provided and assuming the debtor has no other debt, will she be released from any and all liabilities re the house without filing a bk?
Question #2: Assuming bk is required, should she file for bk first and then do the short-sale?
Question #3: if she decides to let it go into foreclosure, does it really matter whether the bk is filed before or after the foreclosure? the property is in Nevada and my research shows that NV is not an anti-deficieny state and the foreclosing lender has 3 months within which to obtain a deficiency judgment.
Any help is greatly appreciated.
Sofya Davtyan, Esq.
The post was migrated from Yahoo.