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RealEstateAnswer, Lawyer
Category: Real Estate Law
Satisfied Customers: 27583
Experience:  10+ years in handling Leases, Landlord-Tenant, Foreclosures,Mortgages, and Eviction cases
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I have a 6 unit apartment complex in the state of Kansas that

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I have a 6 unit apartment complex in the state of Kansas that is under water with pmi insurance in the mortage payment. i have spent 20,000 on it I am out of money and can't spend anymore money. what are the ramifactions of walking away or short selling, Kansas is a right to recover state I believe.
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good afternoon. I certainly understand the situation and your concern. Lenders may sue to obtain a deficiency judgment for the difference between the foreclosure sale price and the amount due on the original mortgage. With that being said, borrowers often try and get the lender to agree to either a short sale or deed in lieu of foreclosure, with the lender agreeing to waive their right to go after the borrower for any deficiency. A short sale or DIL has less of an effect on your credit score then a foreclosure, which remains for roughly 7 years. If you want to explore the loss mitigation options offered by your lender, you would want to speak with someone in their loss mitigation department. You are likely going to have to have a hardship and convince them it is better to either short sale the complex or accept a deed in lieu, rather then go through the foreclosure process, which could take time and be costly.

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