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Michael Gonzalez
Michael Gonzalez, Lawyer
Category: Real Estate Law
Satisfied Customers: 538
Experience:  Managing Member at Perez-Mena & Gonzalez, LLC
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Facing foreclosure, but do not want to keep the home. What

Customer Question

facing foreclosure, but do not want to keep the home. What about the deficiency - what is the best option? am retired and moved out. Have on the market to sell.
JA: What's the status of any foreclosure proceedings?
Customer: talked to the bank this week just found out in foreclosure since mid June
JA: Where is the property located?
Customer: Merrillville, Indiana
JA: Anything else you want the lawyer to know before I connect you?
Customer: heard that you can waive your rights on foreclosure and not be responsible for deficency. on fixed income too
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Michael Gonzalez replied 3 months ago.
Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.Yes. If you are significantly underwater, then one option is to negotiate with the bank regarding your loss mitigation options. This includes consenting to a judgment and sparing the bank the time and expense of litigation in exchange for a waiver of any deficiency judgment and possibly a small monetary considerations. The deficiency judgment is the difference of what you owe (including all attorney's fees, interest, and penalties) and what the house is eventually sold at auction. The bank would waive its right to go after you for the difference under this scenario.A slightly different alternative would be a short sale. This would involve all of the above but it would be sold to a third party before an auction sale. This scenario is slightly better for the sake of your credit.You may live and rent in the property while this process plays itself out. For that reason, I always request an extended sale date after the consent judgment in order to stay as long as possible. The extended sale dates usually consented to by banks are from 90-120 days and maybe more.Good luck to you!
Customer: replied 3 months ago.
We want a best option as was asked.
Expert:  Michael Gonzalez replied 3 months ago.
Given the facts provided and your intentions, either option would suffice. The short sale option (which is slightly different than just consent judgment or what is called "deed in lieu" of foreclosure) would be the best option on the facts you provided.