Hello, Can anyone help with this question,
We are UK residents who bought in Orlando at the height of the market on a no proof of income mortgage, we now find we are struggling to pay the mortgage, we are about to put the house on the market, should we go for a short sale or let the lender forclose on us,also can the lender force us to pay the debt with the equity that we have on our home in the UK, which is mortgage free,all our US tax affairs are up to date. Thanks

What is the current appraisal and how much do you owe? You may owe more than the property is worth and will still be on the hook for the difference.

Thanks for the answer, we owe 299,000. Going off the others that have recently sold it should be around 250ish.
Thanks.

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Originally Posted by ballengerb1

What is the current appraisal and how much do you owe? You may owe more than the property is worth and will still be on the hook for the difference.

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Hi, we owe 299,000 going off the others that have sold it should be around 250ish.
Thanks

So the lenfer will still want his missing $49K if yours sells for $250K. They will not let you off the hook and if you allow foreclosure they would likely sell for much less than 250 to get a quick sale since they can always get the balance from you. What did you list for collateral on the loan? They will go after that.

Quote:

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Originally Posted by ballengerb1

So the lenfer will still want his missing $49K if yours sells for $250K. They will not let you off the hook and if you allow foreclosure they would likely sell for much less than 250 to get a quick sale since they can always get the balance from you. What did you list for collateral on the loan? They will go after that.

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Thanks, we listed the house itself?

As with the previous post, there is a deficiency balance estimated at 49K.
If the lender agrees to a short sale and discounts the note, they are still taking a loss. The question is whether a lender would settle for
49K less than what they are owed. If there is a foreclosure, they could end up with even less and still there is a deficiency balance. The note you signed with them is a promissory note, a legal contract, to pay them a certain amount each month. Undoubtedly, this is the legal position they will take. It is neither the bank's fault nor yours that the house value is far less than the actual mortgage. Whether it is a short sale or foreclosure, they will likely try to get a judgment against you for the deficiency balance. And they can only do this with a court order. A court order would require you to disclose your financial position, in which case you would have to list assets, liabilities, equity, savings, etc. The final decision would be by the courts but it would be complicated--you are UK residents but have a legal contract with a lender in the US. You will need to check with a UK lawyer to determine if any of your finances and/or equity could be seized by a US court order. Hope this helps you. Good luck!

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Originally Posted by XTC832

As with the previous post, there is a deficiency balance estimated at 49K.
If the lender agrees to a short sale and discounts the note, they are still taking a loss. The question is whether or not a lender would settle for
49K less than what they are owed. If there is a foreclosure, they could end up with even less and still there is a deficiency balance. The note you signed with them is a promissory note, a legal contract, to pay them a certain amount each month. Undoubtedly, this is the legal position they will take. It is neither the bank's fault nor yours that the house value is far less than the actual mortgage. Whether it is a short sale or foreclosure, they will likely try to get a judgment against you for the deficiency balance. And they can only do this with a court order. A court order would require you to disclose your financial position, in which case you would have to list assets, liabilities, equity, savings, etc. The final decision would be by the courts but it would be complicated--you are UK residents but have a legal contract with a lender in the US. You will need to check with a UK lawyer to determine if any of your finances and/or equity could be seized by a US court order. Hope this helps you. Good luck!

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Thank you for the information I will check it out with a UK lawyer