Foreclosure in 91301>Question Details

Allison, Home Seller in 91301

Huge unexpected bill AFTER short sale?

Asked by Allison, 91301 Tue Apr 12, 2011

We just sold our house on a short sale. Now we got a huge bill from Chase for what they say was missed payments from before the sale! I was told if we sold the house on a short sale the debt would be forgiven and we would not owe anymore. I asked this a few times during the closing and was always reassured that we would not owe anything after sale except for taxes on the forgiven debt. Now we got a suprise bill in the mail. What can I do? Are they even able to do this? I don't have the money to take it to an attorney.

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Did you get in writing that the debt would be satisfied in full by Chase and they would not go back and attempt to collect past due moneys? Or was this a verbal agreement?

And you may not be liable for taxes on the forgiven debt. Before filing your taxes, make sure you check with a tax professional that is familiar with the Mortgage Forgiveness Debt Relief act of 2007.
1 vote Thank Flag Link Tue Apr 12, 2011
Dear Allison,

Be sure to review your approval letter from Chase and the conditions of the lien release they agreed to. If this is a first trust deed on your primary residence you should have no further obligation. I've had many clients receive invoices and statements from their mortgage holder in an attempt to collect money from the borrower in hopes that they won't know any better and simply pay it.

But to be absolutely sure, you MUST consult with a real estate attorney and a tax consultant so that they can properly review your final documents, agreements and the terms of the invoice or statement you received from Chase. They will be able to tell you if you have any further obligations or not. Not likely that you do. Good luck!

Diane Wheatley, Broker
diane@moveupproperties.com
0 votes Thank Flag Link Wed Apr 13, 2011
In California, when the loan involved was a purchase money loan they cannot come after any shortage. If it wasn't, they can seek the difference unless you have it in writing.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Tue Apr 12, 2011
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