Posted on: 09th Dec, 2010 09:50 pm
Hi,
We did a short sale on our home 12/2009. The first (Chase) agreed to the short sale and released us from the lien/mortgage. The second (Principal Financial) agreed to the short sale and accepted $3000 from the first and the agreement stated they would relieve liability if bankruptcy occurred. Based on our realtor's suggestion that they might write off the shortage amount, we went through with the short sale. (We learned over 7 months later she had received verification from the second prior to the closing that they intended to collect the full amount and did not disclose this to us.)
We have received no letters requesting payment for the shortage. However, upon reviewing our Equifax credit report, we now see that it is listed as collection agency in May 2010 and then to charge off in June 2010. It is also listed as an installment loan.
We are completely confused and have no idea what to do at this point. It's hanging over our heads and affecting our credit and lives, but no attempts to collect have occurred.
We would so appreciate any insight or help you can suggest - leave it alone, negotiate (with who now?!), bankruptcy, etc.?
Thank you.
We did a short sale on our home 12/2009. The first (Chase) agreed to the short sale and released us from the lien/mortgage. The second (Principal Financial) agreed to the short sale and accepted $3000 from the first and the agreement stated they would relieve liability if bankruptcy occurred. Based on our realtor's suggestion that they might write off the shortage amount, we went through with the short sale. (We learned over 7 months later she had received verification from the second prior to the closing that they intended to collect the full amount and did not disclose this to us.)
We have received no letters requesting payment for the shortage. However, upon reviewing our Equifax credit report, we now see that it is listed as collection agency in May 2010 and then to charge off in June 2010. It is also listed as an installment loan.
We are completely confused and have no idea what to do at this point. It's hanging over our heads and affecting our credit and lives, but no attempts to collect have occurred.
We would so appreciate any insight or help you can suggest - leave it alone, negotiate (with who now?!), bankruptcy, etc.?
Thank you.
Hi Anony,
Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/2ndloan-chargeoff-shortsale.html
Take a look at it. Hope it helps you.
Thanks,
Jerry
Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/2ndloan-chargeoff-shortsale.html
Take a look at it. Hope it helps you.
Thanks,
Jerry
Usually even if you short sale the home, the second lien needs to be dealt with, it isn't a matter of ignoring the second and it will go away, you are still responsible for that debt. If the realtor did not disclose this information to you to keep the sale of the home and make sure the transaction went through you may have some legal recourse. In the end you should of done your homework, you can go to the irs.gov website and review the mortgage debt relief act. See if perhaps this may help you.
Good luck!
Good luck!