If I received a mortgage discharge from my lender after a short sale, do I still owe any money?

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If I received a mortgage discharge from my lender after a short sale, do I still owe any money?

I sold my house in an approved short sale 7 months ago, now I have just received a letter from the bank telling me I still owe the full amount. How is that possible? I was fully released from further obligation and I received a certified letter of mortgage discharge. Should I be worried? I call them up immediately and they told me they were going to investigate the issue, but as today they haven’t got back to me.

Asked on July 16, 2011 under Real Estate Law, Florida

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Since you received a discharge of your mortgage from the lender, you do not owe the bank.  It would be advisable to provide the bank with a copy of the certified letter of mortgage discharge.  The problem seems to be with the bank's records.  If the bank's "investigation" does not resolve the problem, you might want to consider a lawsuit against the bank for negligence based on their faulty recordkeeping.


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