Hi - my name is XXXXX XXXXX X'm a Real Estate litigation attorney here to assist you.
Under Oregon law, a lender has the right to seek a deficiency judgment against you for the difference between what the sale generates and what is due under your note.
The best way out is if you offer the lender a deed in lieu of foreclosure. This avoids the foreclosure process and also prevents the lender from obtaining a deficiency judgment against you for the deficiency balance. If you can get the lender to accept this, that's your best out.
Otherwise, you're going to be faced with a deficiency either through foreclosure or selling the property for less than you owe.
so how is the value determined, if I can't sell it , but it is worth 200,000 and i owe 300,000, can they only come after the diference? or can they say it is worth 150000?
Why would they accept a deed in leiu?
The lender has the right to sue and recover the difference between what you owe and what the property sells for.
A lender may accept a deed in lieu if it doesn't believe it will be able collect the deficiency from you. This doesn't guarantee that they won't come after you, but it does reduce the odds.
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