Real Estate Law
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I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear about your situation.
You are legally responsible for the full amount of the modified loan, even when the value of the house drops, because that's the agreement that you made. However, you could see if the bank will agree to a short sale, meaning that they agree to cancel the balance due on the loan in exchange for you selling the property for the market value. It's entirely up to the bank whether they're willing to do this, and you'd still have to pay any realtor fees out of your own pocket, but you might be able to avoid paying the difference between the sales price and the total due on the loan.
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