we sold our house on a short sale. our realestate broker told us we wouldnt have to pay the balance. now they?
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Mommy
are trying to collect 80,000 through a collection agency. I sent a letter of validation which they have not responded to and they reported to the credit bureau as a partial loss. What does that mean?
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4 Comments
November 14th, 2009 at 4:06 pm
In order for the short sale to take place, the lender would have to have agreed to it. At that time, the terms of the agreement would have been spelled out in writing in the documents that both you and your lender signed. Regardless of that agreement – the lender is still going to report to the credit bureau that they took a partial loss – because that is what happened.
November 14th, 2009 at 4:37 pm
The real estate broker did what was to his advantage in your case. He answered your question but did not address the concept you were asking about, thereby omitting information you needed to protect your interests.
What you needed to have done was to have the lender draw up an agreement to release from mortgage deficiency document. What that would do is release you from liability for the deficiency ($80,000) judgment the lender has filed against you.
A short sale will always show up as a kind of voluntary mortgage repo on your report but the judgment and collection part could have been avoided if your question had been answered in full in the beginning.
Only your attorney would have cared about your interests in this case. I am guessing you did not have one.
You could: declare bankruptcy or simply don’t worry about it since your credit is toast anyway as a result of this situation.
I am not saying that to be flippant I just feel at this point it is better to move on and do things in a way that do not rely heavily on credit (buy an owner-financed home, rent for awhile) until things settle down a little.
November 14th, 2009 at 4:38 pm
It means you are on the hook for the $80,000 but the bank may have settled for less. Your mistake was listening to a dumb or crooked real estate broker.
November 24th, 2009 at 8:03 pm
I am sorry to here about you circumstances, this is a very harsh lesson learnt.
Most Real Estate Agents, are useless even though they try there best but some are just awful to the point of being criminal. I suggest you speak to a laywer asap and do not agree to anything else or sign anything else without geting any legal advice first.
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