What happens now after my home was foreclosed?

Asked by Jan, Las Vegas, NV Tue Oct 20, 2009

We were in the middle of a short sale when the 2nd lender forced foreclosure on October 2nd. Our realtors along with us were shocked because I guess this rarely happens? We tried to get them to hold off the day before, but the auction went through last week. We were served our eviction papers on Saturday (but were already out). My question is what now? We have no idea where we should go from here. We were so confident that the short sale would go through but to have this happen all of a sudden has been a shock to us. How do I get the deed out of our names? Should I get a real estate lawyer? How do we know if we will get a deficiency judgment? Are we protected by NV laws (Debt Relief Act for taxes, The lender can get no more than the fair market value of the home). We have no other debts, we cannot file bankruptcy! So what is the next step? Thanks for any advice.

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2
Tosh Primrose, , Las Vegas, NV
Wed Oct 21, 2009
Jan,

I believe I answered another question you posted regarding this terrible situation. I am sorry. Unfortunately, it is done. You must look forward and rebuild your life. You are not alone, many people are in your same situation.

You tried to do the short sale, but unfortunately, it didn't go through. The deed will be transferred back to the lender....there is the deed and the note. Two separate items. The first note has 6 months and the second has 6 years to pursue a deficiency judgement. Even if they do decide to pursue the deficiency, you can always negotiate that amount.

The lenders are reserving their right to pursue a deficiency, but that doesn't necessarily mean they will. An attorney can help you with any options, but you can't hold your breath for 6 years. At least after the first 6 months after the date of sale, you will know if the first decided to pursue the DF. If the second lender decides to pursue (if they think you have the resources), you will just have to deal with it at that time and a trusted attorney will be able to help guide you.

You may be protected by the Mortgage Forgiveness Debt Relief Act for the tax liablity. A CPA can assist you with filling out IRS form 982. Please go to: http://www.irs.gov/individuals/article/0,,id=179414,00.html for detailed information about the debt relief act..

Try to move on with your life and begin rebuilding your credit. The best of luck to you and your family.
Web Reference:  http://vegashomerescue.com
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Penny OBrien, Agent, Las Vegas, NV
Tue Oct 20, 2009
Hi Jan,
You want a 1099 which is the tax on the forgiven debt.. Hopefully, you don't have a deficiency judgement which I believe they hav 6 months to come after. Yes, you should take with an attorney.. Time to Move forward, Have a great day. Penny O'Brien
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