What you are mentioning is a deficiency. If you get foreclosed on a single mortage non-judicially the bank will not be able to collect the loss. If the bank forecloses judicially then they can collect on the loss.

Oscar

I also have a house going for short sale. The question that I have is once the bank takes over my house because I can not afford to make payments, will the bank come after me if they can not sell the house? Or if they sell the house and the sell price is under what I original paid, will they come after me to make me pay the difference?

Example, I paid my house for $200,000 and now I can no longer make payments. The bank will now take over my house and made a sell for $170,000. Will the bank come after me for the difference of $30,000? If yes, does it affect all the states? I live in the state of Illinois and is there a way to find that out from my state? I prefer not to call my bank and ask them.

Thanks for any advice!

Thanks for considering me for your short sale needs.

There isn’t much risk in buying the on a short sale. Make sure that the person handling the short sale knows the process. Be ready for waiting a while. Hopefully you are not in a hurry. Because of this you should be rewarded. Demand a good deal or don’t close. Do not put too much earnest money.

Oscar