Thank you for using JustAnswer. I am Loren, a licensed attorney, and I will do whatever I can to answer your question and provide excellent service.
I am sorry to hear of your dilemma. I realize how frustrating this is for you, but I believe I have information which you will find helpful.
Yes, you do have options and yes, since this is recourse debt, there is a good chance any deficiency will be reported to the IRS.
You may want to try a deed in lieu of foreclosure
. This is a negotiated settlement with the bank. The advantage to the bank is that it gets the collateral back without the expense of formal foreclosure. The advantage to you is that you can negotiate the continuing obligation to for the deficiency or even get a stipulation from the bank that the property market value is the balance due on the loan
. That way there is no deficiency and the debt is effectively becomes nonrecourse debt.
Of course, you will need to get a release from the note and guaranty as a condition of the deed in lieu.
It is my privilege to assist you. Let me know if you need further information. I hope I have helped you beyond your expectations in the service I have provided to you. I am here for you.
Since this forum is no substitute for your own legal counsel, you may want to verify the information I have provided with a local attorney who is familiar with your local laws and procedures.
I am happy to answer your follow-up questions and assist you until I am able to explain the answer to your satisfaction.