My gut tells me to ask them if you can short sell it.If you have other assets, because its a HML expect them to come after you for the delta - so foreclosure you will have a greater deficiency judgment.

Just a short list its like 50 ways to leave your lover there are 50 gothcas in sub to. 1. the easiest for everyone to understand the sub to violated the Alienation clause in the mortgage or deed of trust and holder of the mortgage DT / Note decides to call the note due and payable and starts a foreclosure. 2. foreclosure started and the person who bought sub to has no means to pay it off or refinance it and the original sellers credit get trashed and if its a deficiency judgement state even on an owner occ like Texas lender sues original seller for the deficiency. 3. this kind of investing or acquiring assets tends to attract those with limited resources so they have no ability to fix things they decide to scale up and then it goes out of control and sellers are really harmed4. deal goes south and original seller sues or files complaint with AG. 5.

I finally found an insurer, and was able to close, but I had to remedy those conditions immediately.Note also that home inspectors will warn you left and right that they are not required to detect building code violations/deficiencies.  

Educational deficiency is quite common.

Ok lots of miss information on this post as this is a CA foreclosure  not a Judicial sale like FLA or other states.1. if the first goes to sale with that equity position any money bid past the opening bid by the first will go to the second automatically.. there is no law suit in CA trustee sales its power of sale.2. the second once the foreclosure occurs both liens are removed.... from the property the second though does have the right to then sue on the note for a deficiency.. ( however Extremely rare on the west coast but it does happen).. but that just goes to the borrower not the property.3. if its a purchase money first thats being foreclosed no deficiency judgement is allowed.. its not like Texas were you can foreclose and get a judgement.  

The lender would then have the option to pursue the original seller for the deficiency if they chose to. 

Then join a local REI group and begin using this formula to overcome your fear of the unknown....Definite Goal/Plans + Faith + Emotion + Action  = All Human AccomplishmentFaith = Knowing you can accomplish your goal / Self ConfidenceEmotion = Feeling you can accomplish your goal / objectiveIf you feel that you are deficient in any element, focus on working on that until you feel you're ready to take action.I wish you the best.

Are short sales less attractive since end of 2014, since now banks can go after deficiency or 1099 the owner?

We lost 2 homes, our business and the commercial property we developed and then was forced 2 file BK to protect us from future deficiency judgments, etc.I am ready to begin again investing in real estate.

Worthwhile leverage if you are negotiating a work out.I pursued two developers with deficiency judgments after default.