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mvw · Joined: 08 Nov 2009 Posts: 1 1.43 Dollars($)

besides equity loan and primary mortgage, are any other debts approved for combining into short sale? I have a line of credit and a credit card the first is about $10,000 the last about 6000. I understand consideration of short sale involves the equity and primary. this would improve my situation but not solve it. as i am a senior citizen with only social security income taking care of the disposal of the home by short sale would work if the equity line was included but i am still left with the rest. what options do i have. deed in lieu and loan modification are not possible and i want to avoid bankrupcy and foreclosure.

jenkin7 · Posted: Sun Nov 08, 2009 11:10 pm Post subject:

Hi mvw,

Credit card and other unsecured debts cannot be included in the short sale. Moreover, if the property is not worth much, it will not be possible to pay off those debts with the proceeds from the short sale. If you are going to short sell the property, it is likely that there will be deficiency from first and/or the home equity loans. You will be liable to pay off the deficiency. Thus, a short sale will not release you from the liability of the debts. You could have opted for a reverse mortgage and paid off the existing debts. But if there is not much of equity in the property, this option will not work.

Guest

thank you for your answer. my concern is that my ira and 401K which are very modest will be seized when i do a short sale. are they considered exempt or must i forfeit them when i settle the sale of the house? at 75 years of age that would be all the emergency fund i would have left and would hate to lose it too.

Kasper_5277 · Joined: 14 Nov 2009 Posts: 24 0.00 Dollars($)

Helo.

Thats better for u.

gmakerley · Posted: Wed Nov 18, 2009 10:00 am Post subject:

mwood i don't think anyone is going to try to grab the funds your retirement accounts. you may wish to discuss this with a financial advisor or your legal advisor to determine the best way to protect these valuable assets. in any event, creditors are not striving to put people in impossible positions, which is why i believe they'll not bother you with this.

gmakerley · Posted: Wed Nov 18, 2009 10:00 am Post subject:

kasper, the talking heads had a song out once called "stop making sense."

i think i'll change the tune and ask you to "start making sense."

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