What is our continuing liability to our 2nd. mortgage lender 4 years after a short sale?
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What is our continuing liability to our 2nd. mortgage lender 4 years after a short sale?
We did a short sale 4 years ago. The 2nd lienholder is still coming after us for the amount discharged in the sale and recently sent us a statement showing the amount due and interest for the past 4 years.
Asked on February 28, 2017 under Real Estate Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
Unless the 2nd lender agreed that the short sale wiped out or discharged *their* debt, you are still liable for it, even if the 1st lender discharged or wrote off the amount. *Each* lender has to voluntarily agree to give up its debt or claim to money owed. So if the 2nd lender did not forgive, etc. your debt to it, they can still pursue, and even sue, you for the money.
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