Hi Tim, Typically the account settlement means they would reconvey the Deed of Trust. You are wise to ask for that in writing. Look for something that says that when the account is settled they will release the lien and record a Full Reconveyance. Although you would have paperwork that the account was settled this will insure that there are no clouds on title.
Hi Sue, I only hope you are still living in the house and riding it out. I am so happy that you have taken care of yourself and can now focus on rebuilding and recovering from this situation. Many folks do not realize that once they miss 5 or more payments on a second the file is typically sent to a collection agency or sold on the scratch and dent market. These folks only benefit if they collect something and usually do not cooperate with short sales. Now that you have filed BK and they see that they are going to get nothing they may be willing to take the 1-3,000 dollars that the lender on a first is usually willing to pay a second. I have often said that there should be some clearly defined rules on short sales. Unfortunately it is a “try and see” experience.
800-695-1031
Hello,
Long story short, the property was closed in March 2011 through a short sale. The first mortgage was with Chase and the second was with BofA(investor E-Trade). Chase waived the deficiency judgment. I was under the impression that there was no deficiency judgment from BofA(2nd mortgage), because after 6 months of negotiations my realtor said there would not be deficiency judgment if I paid $6000(total amount owed was 15K before paying the 6K during closing), I agreed, but because of so much confusion I did not review the docs and I repent that now. This was total mis-communication between my realtor and myself and when contacted realtor, he is just answering my phone calls, instead he send me email to call servicing company and sort it out.
I did not receive 1099-C and I called BofA last week, and to my surprise they said, I have deficiency judgment. So far nobody has called in regards to deficiency judgment, I would agree if I did not pay any penny but the reality is they got paid and the situation is, they can haunt me any time they like. Please help, how I can call the investor and resolve this? Will E-Trade come after me in future?
HI Roger, It is really unfortunate that you did not read the paperwork. At this time your best bet is to negotiate a settlement with the 2nd. Given that you have paid almost half you should be able to negotiate a settlement with them. You car right in that they can pursue collection on this account and it will likely appear as a non-secured debt on your credit report.
Thank you Michelle! In fact I called BofA and what they said was, the file was closed at their end. It is up to the Investor(E-Trade) to go after me, if they decide to. I am not sure how to and whom to contact at E-Trade to settle this. I did not understand the second part of your response “You car right in that they can pursue collection on this account and it will likely appear as a non-secured debt on your credit report.” Can you please clarify? Thank you!
etrade is very hard to deal with I started calling them even before I got behind .no help could not even get them to call back.when i final talked a person qas told we dont do settlement offer on currant account,My 1st was gmac ,they told me Etrade hard to deal with short sale will be hard deed in lein no way ,they forecosed I have not settled with Etrade
You indicated that you have had good success in negotiating short sales with Etrade. How may I contact you to discuss? I have a client with a PNC Bank/Etrade HELOC. Thank you Christine Jordan Peachtree Fine Properties 770-378-8979
We have an offer on a short sale. Primary is Bofa which approved the short sale. 2nd is held by GMAC/e-trade. They will not approve the short sale. According to GMAC there was a new rule put in place on Dec 1, 2012 that the investor will not take less than all of the payment now. Does anyone know anything about this new rule?
TWO YEARS and our short sale is almost approved. I last wrote in January of this year and it’s been a LONG year. We have moved to another state, and our 5th buyer (ridiculous!) has held on waiting patiently. Since filing BK, PNC is now offering to settle for $17K. Remember, we offered over $60K total; now they are only getting $17K. They originally wanted $17K (10% of the total) at closing and then 60% of the total within 3 months, which would have been impossible for us ($103K - sure, no problem!). Had they agreed to our offer (much more than they are now getting), we could have avoided BK. But, it’s almost done! B of A has agreed to 1/2 and buyer has agreed to 1/2. For those that don’t understand, just because the 2nd can’t come after you for a deficieny if you have filed BK, they still can kill the shortsale deal by threatening a lien on the property; no buyer would take that on. Everything now has been accepted, it’s just a matter of finalizing the paperwork and closing. So, I now have a BK and a short sale under my belt. I’m still relieved it’s not a foreclosure because I do want to buy another property in a few years (not 7), and I’m not dwelling on all the bad that happened. We now live in a much more affordable state and I will get on my feet and move on. Having lost a child, even a BK and short sale is not the end of the world. It’s just money and credit - both of which can be regained; thinking of what is good now.
A relative has received a notice of public auction/sale in Wake County NC forced by ETrade as the 2nd position lender due to a defaulted personal loan secured by their residence. B of A is the 1st lender and is current. As such, she has felt ‘safe’ as ETrade could not foreclose without paying off B of A’s payoff of $178K! Her attorney is shocked ETrade would try something so silly as the numbers don’t add up. Etrade’s claim is $88K plus another $33K in late fees and penalties totaling $121K. The home would be worth maybe $300K but it is 17 yrs old, no updating and has fallen into considerable disrepair due to neglect. I told her to get back on the phone with her bankruptcy attorney since absent filing bankruptcy, that I can tell, she is still at risk of a deficiency judgment for any shortfall. Does anyone know if Etrade typically even bids at the auction? I suspect maybe not but I’m sure BoA will bid and would be willing to go maybe $150-175K not knowing anything about the possible condition of the home. When she called BoA and reminded them she’s in good standing with them, they simply said “we do not get involved with 2nd lender foreclosures”. My realtor friend advised there’s no longer any shame in declaring bankruptcy and she should simply do so by seeking out such an attorney. This will cancel? the public auction and put the home and the two mortgages in the hands of a bankruptcy trustee.
Useful idea Pavier Simpson If you believe everything you read, better not read