Posted on: 07th Jun, 2011 04:05 pm
I'm sorry to ask another question, if the answer already exists on the forum someone can link me to it. We have a Loan with Bank of America who agreed to do a HAFA short sale, but they sold our second to Real time resolutions. Real Time is threatening to go after us for the deficiency. I thought in a HAFA short sale you can't go after the deficiency, but Real Time told us that wasn't true. Can they go after us and is there a way to avoid it?
Home is in Nevada, we live in Utah now
1st mortage $170000
2nd $40000
Home is in Nevada, we live in Utah now
1st mortage $170000
2nd $40000
You would want to review your loan documents. In CA, we only use the DEED OF TRUST, which contains a clause "power of sale" basically it boils down to the lender can only reclaim the collateral, and no deficiency is allowed. California is a non judicial state, and I believe so is Nevada. There for, our laws do not allow for deficiency judgments. Check your loan docs, contact a local RE attorney for free consultation for your rights. If the creditor is threatening and lying to you, just to try to scare you into paying a debt, is highly illegal. There are no debtors prisons, as some collectors like to instill in the minds of debtors. FYI, Florida is a state that allows for deficiency judgments and they can come after you up to 20 years later. My understanding is under HAFA, when the short sale is approved, the a small portion goes to the 2nd lender in lieu of the foreclosure. You can check the HAFA guidelines by googling HAFA guidlines 2011 and make sure the site is .gov to be trustworthy.