Asked by Ana Sands, Orange Beach, AL • Thu Nov 11, 2010
We owed $520K our house in Alabama. I applied for a HAFA short sale due to financial hardship. The house appraised for $295k and we had an offer fro $290K. The HAFA was denied, however the mortgage company (Aurora Loan Services) said that we could do a traditional short sale if we either gave them $50K cash or signed a 10 year interest free note payable. We do did not have $50k and did not sign the $100K note payable. We told the mortgage company that since the FMV of the house was $295K and the current offer was for $290k that we would come up with $5k so that they would get the FMV of the property. They denied the short sale. Nedless to say, the house went into foreclosure and the bank bought it back for $270 and now we just found out that the buyer that offered us $290 for the house during the short sale, just bought the house from the bank for $250K. Does "Plaintiff failed to mitigate damages" apply? Do we have any rights?
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