Showing posts from July, 2009
Understanding Short Sales

Short sales are becoming a common way for homeowners to sell their homes when they find themselves in a situation in which they have to sell and they owe more than the house is worth in this market. Short sales are a complicated and lengthy process and there are many aspects of them that homeowners should consider before deciding a short sale is the best course of action for them. Below are some of the frequently asked questions about short sales:

What is purchase money and non-purchase money deeds of trust? Purchase money is the money you borrowed to buy the home and is considered non-recourse debt. Non-purchase money is debt on your home from a refinance of the home and can be recourse debt.

What is non-recourse and recourse debt? A home non-recourse loan states that in the event of the foreclosure, the bank can only take the home as collateral and cannot take any further legal action against you. It is still unclear whether banks can file a deficiency ju…