Short sale with 2 loans

Hello.

You should gt the tax relief although you live in Colorado and the property is in california. Have you consulted with an tax advisor on this issue?

Hi Terrygg,

Has the lender finally agreed on a short sale? If so, then you'll have to pay the difference between the loan balance and the sale price. It doesn't matter if you're in Colorado. What's important is the state where the property is located. Since it's in California, therefore, you will not be eligible for the mortgage tax relief . So, you'll have to pay taxes if the unpaid debt is forgiven.

Good luck

I received a loan to install a pool in my home. I short saled the home last April. The 2nd note holder is coming after me through collections. Can they do that even if the house is in California?

Hi Cfinch,

Welcome to the forums.

Where is the house located? may be the second lender has onatined a court order in California. The court may have considered the deficiency judgment in some other state as valid in california and that's the reason the second lender is coming after you. Since you no longer own the property, therefore, the second lender has sold off your loan (which is now an unsecured debt) to a collection agency.

I'm afraid but they're just asking for the money they've invested. Why don't you try and negotiate with the second lender for a charge-off? take help from an attorney to make the negotiation a success.

Take Care

I just did a short sale in July. I'm not receiving a bill in the amount of $55,000 from the second lender. On my credit report it shows that it was charged off. Is it better for me to claim bankruptcy, Chapter 7? I'm a single mother with three kids and would never be able to pay that off.

Hi Jessica Pineda!

One of the community members have answered your query at the given link.
http://www.mortgagefit.com/second/chargeoff-bankruptcy.html

Take a look at the answer. I hope it will help you.

Thanks,

Jerry

similar to above:1st mortgage 270k second mortgage(line of credit secured by house) different lender 150k: question if lender number two isn't pif, but i am virtually bankrupt-no assets/homeless...can they garnish future wages? tia

They may garnish your savings but I don't think they can garnish your future wages.

1st loan o k'd short sale 2nd equity line wants 6000 to sign off deed of trust. it was ok'd by 1st now were told 2nd wants us to sign a nonsecured loan for defincency on the 2nd are they won't sign off with 1st. calif is a anti defincensy state can they do that? does that appy to equity line on home?

Hi Mary!

Welcome to forums!

As far as I know, the second mortgage lender would be able to sue you for his payments. Anti-deficiency laws would restrict the first mortgage lender from collecting the deficient amount from you. If you do not pay off the required amount to the second lender, there are chances that he may charge off the loan to a collection agency.

Feel free to ask if you've further queries.

Sussane

I am through a short sale . The short sale is only in the second, an equity line of credit with other bank. The first gets all he money but the second only the half . This more of the 5% (almost 30%) after all the debt after taxes an default payments. etc. It is my second property. Can they go after my other property ? In the other I don't have equity also because of the devaluation. In this one I stopped the foreclosure in this one and in the other I couldn't pay the last month .I'am self employed and we don't get enough money. The fist house was rented and the renters were evicted. I don't have money for the two mortgages even if a rent again the house. thanks

Hi betty,

The second lender will have the rights to sue you for the deficient balance resulting from the sale of the property. You will have to pay it off. If you don't do so, then the second lender can place a lien on your other property. However, in order to do this, they will have to file a lawsuit against you and get a judgment.

Lots of information here- you all are wonderful. Question, what if teh first and 2nd loan are with them same bank? Is it easier to get the 2 approved for a deed/lieu or a short sale? We ahve a home that we are 3 months behind on- both the first and 2nd - we have both loans with teh same bank and want to know what the best options are and possiable scenarios. We cannot afford to pay of the 2nd. ( if we could we would)

Hi Strands!

Welcome to forums!

Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/twoloans-dedinlieu.html

Take a look at it. Hope it helps you.

Sussane