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Short sale & Unsecured Promissory notes

Posted on: 05th May, 2009 05:05 am
:cry:
I lost my job (times are tough finding another) in the mean time I have finally fallen behind on my mortgage payments just this March 2009. I have a buyer who is making a good offer, (considering the property values have dropped) the lender will lose roughly 28K. They are wanting me to sign a 10K promissory note on top of the 1099 they will report, I dont have a job (they dont seem to understand that no job means no income/money) I am a sole source income person when I do have a job. If I do not find work and cannot make payment on that unsecured promissory note what rammifications is there going to be? Does it go against my credit, can they take my car, can they garnish my unemployment checks? Go after tax returns? If I find a job at some point can they garnish my wages... Is there a statute of limitations on these notes? How will that hurt my credit on top of everything else here? Until I lost my job my credit scores were pristine... 770s and higher...

I tried to deal with the lender from the very start (even notified them when I lost my job), they were just totally uncaring, not helpful in any way at all, I have never talked to such rude people in my life?

What is the doom and gloom story on this... Need response ASAP...
mike, you've been through the wars, so i don't really question your post. the one thing i can identify with and concur with - but even more strongly - is that speaking with an attorney ought to be more than a consideration. it's a must for the majority of us.
Posted on: 31st Oct, 2009 04:42 pm
I absolutely agree, George. Knowing what I do NOW, there is simply no way that the average homeowner can possibly cover all of the legal and financial angles in one of these cases. They may be able to cover enough to save themselves, and in some cases that's enough - the pro se appellate litigant in Miami who was so convincing that he had the judge literally tearing up the note holder's Motion for Summary Judgment and throwing it over the bench is certainly evidence of that.

Unfortunately, the sheer volume of steps, angles, points and countermeasures that should and/or need to be taken to protect a borrower legally are so numerous that it takes someone with literally years of experience and a check list as long as both arms to properly cover even a significant portion of what can be covered.

I say "consider" only because a borrower, in this case Linda, may have already attempted to find legal counsel. That in and of itself can be a frustrating experience. I know that I interviewed literally over 150 law firms before finding one that either even remotely understood my case or didn't want a $30k retainer or didn't flat out call me a deadbeat for "trying to get out of paying my mortgage".

Fortunately, programs and firms are beginning to finally catch on to the game - as evidenced by today's McClatchy piece on Goldman Sachs and their investments AGAINST the mortgage industry. Bottom line is that only the individual in the situation knows what they can financially, physically, emotionally and psychologically handle when thinking about litigation in this arena. Looking back over my last 8 years would I attempt to do this without an attorney? Not if I had the choice, no. Would I have attempted to do it without the RIGHT attorney if I had no other choice? Quite possibly. Sometimes having counsel who is unwilling and/or unable to listen to their client can be just as damaging as not having counsel to begin with, sometimes more so...
Posted on: 01st Nov, 2009 02:27 pm
I have a unique situation...

I had an 80/20 loan in CA, total ~$310,000. The first was ~$250,000 and the second was ~$60,000. Both were used to buy the home to begin with.

After a nightmare year of the banks not communicating with each other, losing 5 buyers, and endless back and forth, we finally got both banks to approve a short sale at $169,000, but the second only would approve it after a promissory note for $6,000 IN ADDITION to the $3,000 they were getting from the closing. The sale and closing then went by with NO promissory note. Now, they (the second leinholder) are screaming about how they don't have a note and will come after our kneecaps if they don't get one. Now, don't get me wrong, I enjoy my kneecaps. But, do they have any recourse? Or does their complete ineptitude prevent them from doing anything but whining in hopes that I suddenly take pity on their poor bailed-out selves and send them $6,000 out of the goodness of my heart?
Posted on: 13th Nov, 2009 06:44 pm
i suspect that their pity party isn't going to be successful with you, but that you might be swayed by a legal manuever. do you have an attorney? i'd suggest consulting with one to see if there is any recourse now that no promissory note was signed. i'd have to agree that ineptitude identifies what took place, and my reason tells me they're out of luck, but that's not a legal opinion, of course. and when someone takes someone else to court (if they should try that), there's no telling what could happen next. if a fiesty judge like judge judy was on the case, both parties could lose!
Posted on: 15th Nov, 2009 07:46 pm
Hi JAFO!

Welcome to forums!

The second lien holder can definitely come after you to recover his dues after the short sale. He has all the rights to recover his dues. If they cannot recover the dues, they can charge off the loan to a collection agency.

Feel free to ask if you've further queries.

Sussane
Posted on: 16th Nov, 2009 12:19 am
I get my self a lawyer ,but now he told me today he can no be answer me everytime I call him, He told me I have to call the bank and give the information for a short sale, but he dont tell me what information, the house was in short sale before but he said the bank take it away ,so hi is trying to put it back, I also told him to tell the bank we paid what we own in thies two years, but he said he dont recomend that, the house was bouth for 160,000 is been in the market for two years for 110,00 and nothing hapeen
Posted on: 09th May, 2011 01:58 pm
Hi gloria,

If you want to go for short sale, you should contact your lender and check out what you need to do. You should contact the customer care department of the lender and they will guide you in this matter.

Thanks
Posted on: 10th May, 2011 11:05 pm
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