Posted on: 06th May, 2011 01:09 pm
So Jan 13, 2011 in NJ we completed our short sale. Wells Fargo serviced both mortgages. First took less but reported to credit bureaus that they accepted less and are fine with that. Problem is 2nd. They got more from me at closing and then closed account and charged off balance 0f $160,000. Attorneys say that they can come after me but probably won't. In NJ what do you think will happen. Credit report took a hit.
It depends on your state and you real estate laws. In California, mortgages are secured by a Deed Of Trust. It really isn't a mortgage. A deed of trust has a power of sale clause, which allows the lender to allow a trustee to conduct a trustee sale to recover the money lent. The only recourse on a DOT is the property itself. If you have a mortgage or your state allows judicial foreclosures, then you might have the right to deficiency judgment. You need to have a competent real estate attorney take a look over your contracts and deeds.
hi bjhmger,
the second mortgage lender has charged off the debt. in such a situation, they won't come after you. however, the collection agency to whom they have charged off the debts will come after you to recover the debts.
thanks
the second mortgage lender has charged off the debt. in such a situation, they won't come after you. however, the collection agency to whom they have charged off the debts will come after you to recover the debts.
thanks
