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Home > Reader Questions > Can We Do a Short Sale If There Are Four of Us on the Note? – Haydie

Can We Do a Short Sale If There Are Four of Us on the Note? – Haydie

My daughter owns a property. She owes $450.00 There are 4 of us in the deed. Only my daughter & my husband are in the mortgage. However, my daughter changed to a new job taking a drastic cut. My husband is laidoff. My daughter’s husband is also laidoff. I have been on permanent disability since 1996. We would like to do a short sale. My daughter’s husband & I are not in the note. If we ask for short sale, would the bank go after my husband & my assets. We have our own house plus an income property. But this income is my husbands income since he is not working! How do we manage to get our debt forgiving? Thank You


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  • TES

    From my experience in real estate & also in process of doing a short sale at this very moment for some customers, the Lender (Oklahoma) is only going off of the person’s name who is on the actual mortgage.  You shouldn’t have to worry about your other property but it would be worth talking to a Realtor in your state.  For the short sale I am working on, they wouldn’t even begin to work with the homeowner until she hired a Realtor.  Good luck and i hope this helps!  

    • Steve Rhode

      Good advice.

  • Khizmet03

    This is good information. My husband & I are also thinking we may have to short sale our home.
    Good Luck

  • Doyle


    The short sale process can vary depending on your location and lender.  As a general rule, the loss a lender takes on a short sale is less than if the property goes into foreclosure.  In my state, Hawaii, there were experienced real estate agents and title companies who would coach you through the process as part of handling the sales process for you.  In addition, the larger lenders have online web pages where you can answer many of your questions.  Consult with a realtor you trust and ask them to assist you in your presentation.  The process takes a little longer than a typical sale because the bank has to approve the sales price, but as Msullivan states, it is a routine way to dispose of a property that has a larger mortgage than appraised value.


  • Msullivan


    A short sale is only done in cooperation with the lender. It is an agreement that the lender will accept less than the amount owed (that’s the short part) on a mortgage. If the lender believes that the mortgage owner is unlikely to pay everything owed, that lender may agree to a short sale. The mortgage owner should have in writing that the agreed upon amount is going to settle the debt completely. There should never be a collection effort following a short sale (although I have seen them).

    You should not have to worry about your liability but if you are worried there are ways to remove your name from a deed. In any case, you should all have a chat with a HUD certified housing counselor and make sure you have covered all your bases. This is a fairly routine activity anymore and there isn’t much to fear (except for credit rating losses).

    Good Luck! 

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