Yes, there are alternatives.
You have basically 3 options when considering walking away from the property…foreclosure, deed in lieu of foreclosure or short sale. Texas, unfortunately, is a deficiency state...which means the lender can pursue the borrower for the deficiency...the amount owed over the greater of the fair market value or the amount of the foreclosure sale. Whether or not they will depends upon their assessment of the collectibility of a deficiency judgment. So, if you can convince them there is nothing for them to get, and that if they were to pursue a judgment, you would simply file for bankruptcy protection and get the judgment discharged—and even if you have no intention of doing so, it is still good leverage with the bank because they do not know whether or not you would… then it is unlikely the lender will spend the time and money necessary to get a judgment they believe is uncollectible in the end.
Short sales are dicey. It is generally preferable to do a deed in lieu of foreclosure with the bank (where the bank accepts a deed in exchange for releasing the borrower from the loan) or let the bank foreclose. A deed in lieu of foreclosure saves the bank the time and expense of foreclosure. A short sale only frustrates the buyer and costs the buyer more because the broker is paid a commission which results in less proceeds being available to the bank.....and if the bank is going to release the borrower from the deficiency, it would do so under a deed in lieu of foreclosure without the frustration to the buyer and the payment of the broker commission.
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