Question(s) about a primary residence that became a rental property.

Submitted by Matthew from OR - 11/04/2011 - 5:12pm

Hi,
I am an Oregon resident with a few questions about a property that I bought as a primary residence and later turned into a rental after buying another residence. For ease of explanation, let's say I have a total of $130,000 in loans for a condo through Wells Fargo. The loan is divided into an 80/20 and right now the balance is $115k on a mortgage and $15k on a line of credit. A few months ago I asked my realtor what she'd price the condo for if I were to try and sell it and she said $99k tops.

Here are my questions:
1. Since this is now a commercial property, are my other assets more 'at risk' if I short sale / let the bank foreclose?
2. I get that the bank may seek a judicial deficiency against me for the hypothetical $30k difference between what I owe and what the fair market value is (if it were to sell at auction for $99k). How common is this in Oregon? Is it more likely to happen to me because the condo started as a primary residence and is now a rental?
3. Can the bank come after my liquid cash savings or 401k? What about the other house that I own (finance through Bank of America)?

Thanks in advance!
Matt

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