Should I agree to a short sale if I have 2 mortgages?
If a short sale is agreed to by your primary lender (1st mortgage holder), that does not necessarily mean you will be free and clear of personal liability after a short sale, especially if you have a 2nd mortgage.
If the same lender holds both mortgages and agrees to release the debtor from personaly liability, then great. However, most 2nd mortgages are with different lenders and just because your primary lender agreed to a short sale does not mean the 2nd mortgage lender will. In fact, many lenders are trying to recover the 2nd mortgage notes from the debtor in personal actions after a short sale has occurred.
There are ways to avoid personal judgments for deficiencies in house notes. If you do not handle the situation, you could have your wages garnished and/or liens imposed on other property that you own.
If you have questions about Florida Foreclosures or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
