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Ray, Lawyer
Category: Legal
Satisfied Customers: 41494
Experience:  30 years in civil, probate, real estate, elder law
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My wife and I live in Georgia. Our son lives in Isle of Palms,

Customer Question

My wife and I live in Georgia. Our son lives in Isle of Palms, SC, and is facing either a foreclosure on a $780K mtg., or a short sale of $200K less than mtg. My wife and I have a liquid, debt free net worth of $2,200,000, want to pay cash for a $100K "in-law suite" addition to his house, and help him on his mtg. for a couple of years. Problem is that he has an adjustaable rate mtg., and the pmts. go up $1,600/mo. or so in 15 mo. So, our question is: would it be legal for my wife and I to buy his house on a short sale for $590K? Also, on a short sale in SC how long can a lender go back on my son for a deficiency? We're going to try to get the lender to negotiate better terms if my wife and I personally gty. his mtg., and spend $100K to improve the value. Any advice would be appreciated. Thx, Marvin
Submitted: 7 years ago.
Category: Legal
Expert:  Ray replied 7 years ago.
Thanks for your question.In a short sale here your son would do note for shortage between what is owed and what is sells for.If he then fails to pay they will file suit and seek judgent.This judgment would remain until paid so it doesn't go away here.

I mean you could work a deal here where you buy the house and he does short note for balance.You might consider just refinancing here for whole amount at better rate and have him pay you a portion of it.You are correct that you can get much better rate.You should contact lender here and see what they offer as far as options.
Customer: replied 7 years ago.

Are you saying that the statute of limitations on a deficiency judgement is open-ended?

Expert:  Ray replied 7 years ago.
They would have to re record it periodically.Assuming they do this it unending.They have to re record it every seven years and it bears 12% interest on unpaid balance.Thats for any civil judgment.

Edited by RayAnswers on 4/1/2010 at 1:12 AM EST