Posted on: 05th Feb, 2009 04:40 pm
**Any assistance with this would mean so much** - thank you.
Houston Texas Non-Judicial Foreclosure took place Sep08. US Bank foreclosed. US Bank bought it back at 20k under.
Two Loans - US Bank 80k; CIT Group 20k
I haven't gotten any mail/calls from either since the foreclosure. I spoke with US Bank and they sent me a letter stated that they bought CIT's loan when they foreclosed.
CIT says I still owe them 18k and they want to work a payment arrangement. CIT has charged off 18k on my credit report. CIT's payment plan isn't the best arrangement but it's alright.
Home is still on the market to be resold by US Bank. I haven't gotten any 1099s. Both banks have my current contact info.
Questions:
- Is CIT just gonna tell me I owe them as long as I call?
- Should I take CIT's offer assuming I'm liable?
- Should I stop contacting CIT and wait or request an official letter along with waiting for a possible collection agency?
- Should I WAIT this out and see what happens?
- If Texas allows liability to the Difference of the Fair Market Value, I'm I liable to the difference of the FMV and the amount US Bank bought the home back at "auction", or is it the difference amount of when they re-sell it? I'm I liable to the FMV difference to US Bank and the 18k to CIT ALL TOGETHER?
I feel like I want to do the right thing by calling these lenders - but I'm I running a risk of overexposing myself to paying for things I'm not liable for?
Houston Texas Non-Judicial Foreclosure took place Sep08. US Bank foreclosed. US Bank bought it back at 20k under.
Two Loans - US Bank 80k; CIT Group 20k
I haven't gotten any mail/calls from either since the foreclosure. I spoke with US Bank and they sent me a letter stated that they bought CIT's loan when they foreclosed.
CIT says I still owe them 18k and they want to work a payment arrangement. CIT has charged off 18k on my credit report. CIT's payment plan isn't the best arrangement but it's alright.
Home is still on the market to be resold by US Bank. I haven't gotten any 1099s. Both banks have my current contact info.
Questions:
- Is CIT just gonna tell me I owe them as long as I call?
- Should I take CIT's offer assuming I'm liable?
- Should I stop contacting CIT and wait or request an official letter along with waiting for a possible collection agency?
- Should I WAIT this out and see what happens?
- If Texas allows liability to the Difference of the Fair Market Value, I'm I liable to the difference of the FMV and the amount US Bank bought the home back at "auction", or is it the difference amount of when they re-sell it? I'm I liable to the FMV difference to US Bank and the 18k to CIT ALL TOGETHER?
I feel like I want to do the right thing by calling these lenders - but I'm I running a risk of overexposing myself to paying for things I'm not liable for?
Hi Charlie,
I understand what you're going through.
The US bank seems to have paid off the CIT as they have bought their loan already at $18K less than what you owe. That's the reason CIT is charging $18K from you. They have issued a charge off on the 18K simply because they don't want to waste their time in collecting the amount from you. They'll ask for it once or twice and then if you don't work out an arrangement with them, CIT will sell off your loan to a collection agency that'll then collect the payments from you.
I feel you should wait for the collection agency to call you up or perhaps harass you for the payments. You know how the agencies are….. at least when CIT is willing to talk to you for an alternative plan to get back $18k, you should fix up an appointment with them. And yes, you're liable for the amount worth $18K. What you can do is, just ask the first lender if at all they've bought CIT loan for $28K less than what you owe them. That'll confirm whether CIT is misguiding you.
"I'm I liable to the difference of the FMV and the amount US Bank bought the home back at "auction", or is it the difference amount of when they re-sell it?"
You are liable to pay the difference between the fair market value and the debt you owe, whether or not the house could be sold at the fair market value. But the lender can't enforce a deficiency judgment upon you because such a thing hardly exists in non-judicial foreclosure. Actually the court isn't involved here.
"I'm I liable to the FMV difference to US Bank and the 18k to CIT ALL TOGETHER?"
Yes, you are liable to pay the difference (if any) between the fair market value and the mortgage balance you owe, along with the $18K.
Good luck :)
I understand what you're going through.
The US bank seems to have paid off the CIT as they have bought their loan already at $18K less than what you owe. That's the reason CIT is charging $18K from you. They have issued a charge off on the 18K simply because they don't want to waste their time in collecting the amount from you. They'll ask for it once or twice and then if you don't work out an arrangement with them, CIT will sell off your loan to a collection agency that'll then collect the payments from you.
I feel you should wait for the collection agency to call you up or perhaps harass you for the payments. You know how the agencies are….. at least when CIT is willing to talk to you for an alternative plan to get back $18k, you should fix up an appointment with them. And yes, you're liable for the amount worth $18K. What you can do is, just ask the first lender if at all they've bought CIT loan for $28K less than what you owe them. That'll confirm whether CIT is misguiding you.
"I'm I liable to the difference of the FMV and the amount US Bank bought the home back at "auction", or is it the difference amount of when they re-sell it?"
You are liable to pay the difference between the fair market value and the debt you owe, whether or not the house could be sold at the fair market value. But the lender can't enforce a deficiency judgment upon you because such a thing hardly exists in non-judicial foreclosure. Actually the court isn't involved here.
"I'm I liable to the FMV difference to US Bank and the 18k to CIT ALL TOGETHER?"
Yes, you are liable to pay the difference (if any) between the fair market value and the mortgage balance you owe, along with the $18K.
Good luck :)
Thanks Karen,
I made arrangements with CIT to take care of 2nd lender.
Quick question: Since US Bank bought the property back, is that FMV/buy price difference what I'm liable for right now? US Bank bought it back for 20k under so this is this amount I'm liable for?
So, technically US BANK could be trying to send out my debt to a collection agency right now? I haven't received a 1099 yet.
Do you think I'll even get one?
I made arrangements with CIT to take care of 2nd lender.
Quick question: Since US Bank bought the property back, is that FMV/buy price difference what I'm liable for right now? US Bank bought it back for 20k under so this is this amount I'm liable for?
So, technically US BANK could be trying to send out my debt to a collection agency right now? I haven't received a 1099 yet.
Do you think I'll even get one?
Hi Charlie,
Welcome back.
I think CIT is your second lender, isn't it?
"Since US Bank bought the property back, is that FMV/buy price difference what I'm liable for right now? US Bank bought it back for 20k under so this is this amount I'm liable for? "
I think you owe the difference between FMV and what you owe on the first loan including the $18K that CIT is asking for. I don't you should pay $20K when CIT is insisting on $18K.
"technically US BANK could be trying to send out my debt to a collection agency right now? I haven't received a 1099 yet. "
Yes, they may try to do so. And you could be given a Form 1099C.
Good luck
Welcome back.
I think CIT is your second lender, isn't it?
"Since US Bank bought the property back, is that FMV/buy price difference what I'm liable for right now? US Bank bought it back for 20k under so this is this amount I'm liable for? "
I think you owe the difference between FMV and what you owe on the first loan including the $18K that CIT is asking for. I don't you should pay $20K when CIT is insisting on $18K.
"technically US BANK could be trying to send out my debt to a collection agency right now? I haven't received a 1099 yet. "
Yes, they may try to do so. And you could be given a Form 1099C.
Good luck