I've had two sellers lately with the same situation and want to know if anyone has had an actual transaction like this.
- Seller is in a home they can no longer afford due to hardship
- Based on current situation it is obvious they will run out of financial resourses in less than a year
- They have enough cash to make a downpayment on a small home and want to use most of their cash to get into a home, knowing that if they don't use the cash now it will be gone
- Also they know feel that with the short sale the bank will ask for them to bring that cash to closing
I've never had this experience and have no idea how the bank will react. I would imagine the bank will want the deficiency repaid. Can they place a lien on the new home for the deficiency?