If you stop paying the mortgage on the trailer and go into default on that loan
, you run the risk of a foreclosure
Now if there is a foreclosure, your goal would be to avoid a deficiency judgment.
Having said that, its important to understand that TN allows both judicial and non judicial foreclosures.
So, if the lender goes through the entire foreclosure process and obtains a deficiency judgment, they can get a judgment for the difference in the value of the home and the amount of the loan. For that reason, if you can not re-negotiate your contract
, I would look at the loan documents to determine what type of foreclosure is available to the lender. If you can not re-finance or negotiate terms, you still have options
You can ask the lender to allow a short sale
More info here:
Or you can ask the lender to allow a deed in lieu
But since you lender has the option to judicially or non-judicially foreclose, they may or may not be interested.
Your goal out the process is to avoid a deficiency judgment...as this would allow the lender to pursue your other assets to satisfy the judgment.
Best of luck
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