Posted on: 09th Dec, 2010 08:19 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 sm!
welcome to forums!
if the second mortgage lender has sold off the account to a collection agency, then they will contact you in order to recover the payments. however, the account will now be considered as an unsecured one. in such a situation, if you file bankruptcy, you'll be able to get the account discharged.
feel free to ask if you've further queries.
sussane
welcome to forums!
if the second mortgage lender has sold off the account to a collection agency, then they will contact you in order to recover the payments. however, the account will now be considered as an unsecured one. in such a situation, if you file bankruptcy, you'll be able to get the account discharged.
feel free to ask if you've further queries.
sussane
Should we try to negotiate with the CA if we hear from them and offer 5-10% on the balance since it's already on our credit report at this point? We don't even know who the amount/account was sold off to and we are scared to stir anything up by contacting the 2nd mortgage company to clarify where things stand.
Thank you so much!
SM
Thank you so much!
SM
Welcome SM,
If the collection agency contacts you for the payments, then you should negotiate with them and try to get an affordable payment plan to pay off the dues.
If the collection agency contacts you for the payments, then you should negotiate with them and try to get an affordable payment plan to pay off the dues.