Deficiency Judgments/Forgiving Debt
I'm having a terrible time getting the banks to forgive my homeowner's debt? Any suggestions? Now that I've watched my first homeowner go into BK because the banks went after the $50k I short saled them on, I cannot do this to another person with a clear conscience. Any advice or suggestions would be so very much appreciated!
Don't the banks usually tell you when you are doing the short whether or not they are accepting this as payment in full or as simply the amount to release the mortgage???
This would also bother me but I haven't come accross this with my limited experience.
The banks tell you they will do this, but I've heard from other investors that they never do. It is only on a very rare occasion that they will. However, I have found this not to be the case.
Ask any mortgage broker what is worse on your credit report - a foreclosure or a bankruptcy. They will all tell you that a foreclosure is much worse.
Brenda