Posted on: 08th Aug, 2010 03:34 pm
i can sell my house for enough to pay off my first mortgage but not the second. the second mortgage co is stating that they do not participate in short sales and i owe them there money if they allow the house to sell and waive the amount owed can they then require me to pay off the balance in a non-secured loan after closing?? i thought the laws changed on this recently disallowing this practice by mortgage companies?
Welcome ricrivera,
I don't think your second lender is participating in the HAFA program where the lenders have to forgive the balance amount resulting from the short sale of the property. In that case, you will be liable for paying the balance dues to the second lender. If you don't do so, the lender may charge off the mortgage dues. Thus, a collection agency can contact you for the payments.
I don't think your second lender is participating in the HAFA program where the lenders have to forgive the balance amount resulting from the short sale of the property. In that case, you will be liable for paying the balance dues to the second lender. If you don't do so, the lender may charge off the mortgage dues. Thus, a collection agency can contact you for the payments.