Foreclosure in Tennessee

[stampson]

What is the name of your state?What is the name of your state?What is the name of your state? Tennessee

My girlfriend lives with me now in Georgia. She has had her house in Memphis, Tenn. on the market for almost two years now. The neighborhood is going downhill fast, so the house is a hard sell. Additionally, she got a home equity loan and apparently they over-valued her home on the appraisal. The house can not possibly sell for what she owes. She has good credit but her debt to income ratio will not allow her to get a loan to pay off the home equity. She is considering foreclosure, as her current job does not make enough to keep up with her house there and her other bills. It impossible for her to sell the home, because the selling price would be approximately $20k below what is owed.

It is almost certain that the bank would not have any more luck selling the house than she has had, and it will sell for significantly less than she owes.

If she is responsible for the deficiency after the bank sells the home, how does this work? Will the bank establish a payment schedule for this amount, or simply demand a lump sum?

Thank you for any advice.

[HomeGuru]

Originally Posted by stampson

What is the name of your state?What is the name of your state?What is the name of your state? Tennessee

My girlfriend lives with me now in Georgia. She has had her house in Memphis, Tenn. on the market for almost two years now. The neighborhood is going downhill fast, so the house is a hard sell. Additionally, she got a home equity loan and apparently they over-valued her home on the appraisal. The house can not possibly sell for what she owes. She has good credit but her debt to income ratio will not allow her to get a loan to pay off the home equity. She is considering foreclosure, as her current job does not make enough to keep up with her house there and her other bills. It impossible for her to sell the home, because the selling price would be approximately $20k below what is owed.

It is almost certain that the bank would not have any more luck selling the house than she has had, and it will sell for significantly less than she owes.

If she is responsible for the deficiency after the bank sells the home, how does this work? Will the bank establish a payment schedule for this amount, or simply demand a lump sum?

Thank you for any advice.

**A: research short sale and deed-in-lieu of foreclosure.