Q: Short sale of property in FL. 2 Lenders. Difference of 50k. Currently reside/own home in NC. Are my assets protected?
A:
Protected from what? If you get approval to do the short sale you have to get approval from both lenders. However, some lenders ask you to pony up the balance owed. The lender can come after you for the balance if they have a mind to do so. They also report it on your credit as a default.
Assuming that you would be sued by one or both lenders in NC for any shortage, the next question to ask is what assets do you own? In order to collect a creditor would first serve you with a notice of rights to designate exemptions and motion to claim exempt property. You ask if your assets are protected, but it depends on the value of those assets. Up to $35,000 equity in real property is protected; you get $3500 equity for a car and $5,000 for personal exemptions and $1000 for each dependent child. There are some other exemptions too but these are the main ones that apply to most people. IRAs and 401(k)s and the like are protected, but only if ERISA-qualified.
Please contact me at rachelforjustice@hotmail.com if you would like a more thorough review of your situation. I charge $50 for a 30 minute phone consult.
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