How can I combat 2nd mortgage lender who seeks payment of balance following short-sale?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How can I combat 2nd mortgage lender who seeks payment of balance following short-sale?
We sold our home via short-sale earlier this year. We now reside in Washington and just this month received a phone call from our 2nd mortgage lender seeking payment of the balance. Unfortunately, this was not negotiated at the time of sale. What is my best approach in negotiating the amount due? Do I need to provide income/expense documents to show my financial situation? I’d like to have as much knowledge as possible before returning their call.
Asked on October 26, 2011 under Bankruptcy Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you sold your home via a short sale and the lender in second position now is seeking moneys from you, you need to ascertain if the second loan was part of the property's actual purchase in its acquisition. If so, the second lender may be barred by the anti-deficiency statutes of the state where the property was sold.
Also, if the second lender received any moneys from the short sale there may be laws preventing it from getting any more moneys from you. California has a recently enacted statute in July 2011 on this subject.
I recommend that you consult with a real estate attorney about the situation you are in and the information I have stated in the answer to your question.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.