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Roger
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A year ago, my mother, age 72, got acutely ill; fortunately,

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A year ago, my mother, age 72, got acutely ill; fortunately, she has recovered but found that she has renal failure and hypertension. My mother is currently with my sister however, my sister has three boys with health issues of thier own and it has become taxing on her. We have decided that I wil be taking over the care for my mother however, that will require me to move to my mother's home state.

I am a homeowner (DAYTON, OH) on a single income, I have balances on both a 1st & 2nd mortgages: to finance this move, I had borrowed the max amount from my 401k, which is barely enough to cover my living expense, once moved, for two months.

With all said, what is the best option for me(?) a Short Sale, Deed in Lieu of Forecloser or a Foreclosure?
Submitted: 5 years ago.
Category: Real Estate Law
Expert:  Roger replied 5 years ago.

Hi - my name is XXXXX XXXXX I'm a Real Estate litigation attorney here to assist you.

 

A deed in lieu of foreclosure is the best option because it allows you to avoid a deficiency judgment, which is when the lender sue you for the balance left on the loan after the proceeds of the foreclosure sale are applied. The only catch is that the lender has the right to agree to refuse to accept the deed. However, if the lender will accept, and you have no desire to keep the house, that's your best option.

 

A short sale is also better than foreclosure, but the lender does have the right to seek a deficiency judgment against you for any remaining balance (it has 2 years from the sale date to sue). Thus, if you tried to do a short sale, you would need to negotiate that the lender would agree to forgo seeking a deficiency judgment.

 

If all else, fails the lender will foreclose.

Customer: replied 5 years ago.
Just to clarify; if I were to Foreclose, lenders can seek a lawsuit against me for the balance between a forclosure sale and the loan?
Expert:  Roger replied 5 years ago.

Yes. Under Ohio law, a lender has the right to seek a deficiency judgment against you if the proceeds from the foreclosure sale is not enough to satisfy the loan amount. The lender has 2 years from the date of the sale to sue.

 

Here's a good link that you should review that discusses this point plus other relevant issues regarding foreclosure: http://www.foreclosure.com/statelaw_OH.html

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