Posted on: 01st Jan, 2010 10:50 pm
In short as there are many more details I could add...
I did a short sale and 2 days before the closing they said I would have to sign a promissory note for the remaining balance ($79,000). I told them I would not. They told me if I did not show to the closing, I would be sued for poor performance by the buyer and the buyers agents real estate broker. I said I will show up show up at the closing but I will not sign a promissory note as I it was always understood the balance would be forgiven. The clocked ticked down, my agent could not find anything out so closing day came. I showed up, never sign the promissory note. Now, 6 months later, a creditor is trying to make me re-pay it.
Am I legally obligated to pay the balance even though I did not sign the promissory note?
I did a short sale and 2 days before the closing they said I would have to sign a promissory note for the remaining balance ($79,000). I told them I would not. They told me if I did not show to the closing, I would be sued for poor performance by the buyer and the buyers agents real estate broker. I said I will show up show up at the closing but I will not sign a promissory note as I it was always understood the balance would be forgiven. The clocked ticked down, my agent could not find anything out so closing day came. I showed up, never sign the promissory note. Now, 6 months later, a creditor is trying to make me re-pay it.
Am I legally obligated to pay the balance even though I did not sign the promissory note?
Hi SteveC!
Welcome to forums!
I think the lender did not give you a document stating that your deficient loan amount will be forgiven. In that case, though you never signed the promissory note, the lender can sue you for the deficient balance resulting from the sale. May be your lender has charged off the loan to a collection agency and they are in turn collecting the dues from you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I think the lender did not give you a document stating that your deficient loan amount will be forgiven. In that case, though you never signed the promissory note, the lender can sue you for the deficient balance resulting from the sale. May be your lender has charged off the loan to a collection agency and they are in turn collecting the dues from you.
Feel free to ask if you've further queries.
Sussane
I believe that's what had happened. I should have had an attorney but being sprung with it 2 days from closing made it tough. The lender said they would take $8000 to write it off at closing but with only 2 days, I could not come up with that amount. I guess I have to find out how much the collection agency will settle for... thanks for the reply.
negotiating at this point will be sensible. it might not be $8000 any more, though.
