How can you be safe from debts after a short sale?

  1. Romian1 profile image74
    Romian1posted 5 years ago

    How can you be safe from debts after a short sale?

    Here is the scenario:  An elderly woman in her 70's is going through a short sale of her home in Massachusetts.  There is also a second mortgage tied to the home.  The sale of the home will only cover the first mortgage but only part (say 1/4) of the second.  How can she be sure she won't be harassed for the second mortgage that is not fully paid?

  2. duffsmom profile image61
    duffsmomposted 5 years ago

    If the second mortgage has a lien on the property, it is likely they will have to approve the short sale.  They would be foolish to approve a sale that negates their claim. I would check with the first mortgage holder to find out how that will work. 

    I would think she absolutely will be harassed for the balance on the second mortgage, you can't just walk away from a debt.  Bankruptcy might be the answer in this case.  Check with the first mortgage holder, and the second before taking any action on the sale.