[007 license to sell]

Originally Posted by jaunespinoza

007, does this apply to both a first and second mortgage? I told my brother about this thread, and he seemed surprised, but acknowledged it would vary from state to state. I've also heard (not that we talk of rumors here at C-D) that a short would give you a 190 point hit on your credit score. Can we all sing---"Jingle Mail, Jingle Mail." and you get the free rent. Has anyone seen my kitchen sink?

These new laws were just published in our Southern Nevada realtor magazines we get with updates, to keep us current.

There is another new law on the books as of OCT 1st regarding lenders may no longer seek a deficiency after foreclosures in certain circumstances.

There has been and important change to NRS40.455 that mortgage loans entered on or after Oct 1st 2009 . Current laws allows a lender to seek a deficiency judgment in court if the amount obtained at a foreclosure or trustee's sale is sufficient to cover the entire mortgage debt. Under the new law,if the entity seeking the deficiency is a financial institution, a court may not award a deficiency if a judgment if:
(1) the real property is a single-family dwelling and the debtor was the owner of the property:

(2) the debtor used the loan to purchase the property

(3) the debtor occupied the property continuously after obtaining the loan:

(4) the debtor or grantor did not refinance the loan.

I am not an attorney nor claim to be I am sharing this information with you so you will be aware of the changes, incase you or someone you know is thinking of a foreclosure to check with your attorney and realtor and make sure you know what to ask .

I am a realtor and I read up constantly on the changes going on and there is so many changes happening at all levels of the housing industry. And it's hard to remember them all, and I imagine I am not the only realtor that does this. In any case always have your attorney and or CPA go over with you what negative back lash is going to happen in a short sale or foreclosure.

Good luck out there

[Georgia7377]

So, my original contract for my 2nd loan was with Wilshire. At the short sale they accepted $2500 for what I thought was the to release all responsibility, not to release just the lien. After accepting the $2500 they sold it to the collection agency. The collection agency is acting like it's a 2nd mortgage that is due to them. So, I read some info on this site and I sent them a letter to VALIDATE the debt. Because really, I had a contract with Wilshire and not Select Portfolio Servicing. So, now they have to prove that I owe them that $$$ by validating it to me. Can I be off the hook??? Maybe??

[here4snow]

This happened to us as well with Chase bank. A year after we did a short sale in Michigan & move to Utah, I got a call from them asking for payment. That was in 2008. I have not heard anything from them nor a collection agency. I am holding my breath for the 4 years for the statutes of limitations. We stoped paying them in 7.2007. 7.2011 will be the 4 years. Wish me luck.

[airics]

Originally Posted by here4snow

This happened to us as well with Chase bank. A year after we did a short sale in Michigan & move to Utah, I got a call from them asking for payment. That was in 2008. I have not heard anything from them nor a collection agency. I am holding my breath for the 4 years for the statutes of limitations. We stoped paying them in 7.2007. 7.2011 will be the 4 years. Wish me luck.

since you had the property in Michigan, the statute of limitations is 6 years for real estate. If they have obtained a judgment against you, the judgment is valid for 10 years and then could be renewed for another 10.

[oldgoldwinger]

I may be way off and hope smarter ones will correct, but if it's a collection agency after it, wouldn't one have a good chance of working out a settlement at as little as 10-20% of gross?

[Fighter 1]

Originally Posted by Georgia7377

Hello,
I short sold my house in Las Vegas and it closed on July 20, 2009. The first accepted $87,000 and the 2nd, $2500. I got a call from a collection agency a couple days ago stating I owe $53,000 for the 2nd mortgage. I said, no I don't I short sold my house in July. I faxed them the HUD 3 because they didn't have any record of a short sale. I went back and read 1 of the 500 pages I had to sign at closing. It reads $2500 is to release the lien to sell the house, and not the debt. WTF??? My agent told me both lenders accepted the Short sale, we are in the clear! So, now I don't know what to do. I also have read that Nevada is an anti-deficiency state if you were a primary resident? Has anybody heard of such a thing? I thought having to face the fact of short selling my house was a nightmare... now a new nightmare has occurred. Thank you for any info you may have.

OK, First even though this post is 5 months old . Lets stop and read the post ! They got a call from a collection company! Why do so many people discuss their personal business on the phone with some one they don't know????> ANSWER: Just tell them that you don't discuss your business on the phone . Second: When they ( THE collection company ) send you a letter , respond saying that you do not owe them ( The collection Company) anything , plain and simply put because in reality you don't owe the collection co. anything. And because of that fact trhey have no right to demand anything you. You owe the lender. Now make them show you their contract with the lender , most times they don't have it, therefore they have to start an action in a court of law , there they will have to show that they have in fact bought your contract from the mortgage co., something they usually don't do , they get paid if they collect anything from you. And the cost to collect is such that they don't go any further then the nasty letters and threats.

[Fighter 1]

Originally Posted by oldgoldwinger

I may be way off and hope smarter ones will correct, but if it's a collection agency after it, wouldn't one have a good chance of working out a settlement at as little as 10-20% of gross?

WHY????? read my post. People need to stop and think , make them (the collection co. ) prove you owe them ( ITS really that simple) why be so fast to admit ,as in a court of law , Innocent until "PROVEN" guilty.Try it you will find the results will blow your mind.

[airics]

these aren't $500 debts that the collection agency paid $10 for.. these are massive..$40,$50k, and more.. You can bet they are going to sue and you can bet they have the contract.. And here's the kicker, to get approved for a shortsale now, the new rules (hapa) require you to disclose all of your assets... so guess what.. they know where to look.. its just a matter of getting the paperwork in order.. In Nevada, if you do a short sale, they have 6 years to come after you for the deficiency... If you foreclose, its 6 months..

[ashmere]

Originally Posted by Georgia7377

Hello,
I short sold my house in Las Vegas and it closed on July 20, 2009. The first accepted $87,000 and the 2nd, $2500. I got a call from a collection agency a couple days ago stating I owe $53,000 for the 2nd mortgage. I said, no I don't I short sold my house in July. I faxed them the HUD 3 because they didn't have any record of a short sale. I went back and read 1 of the 500 pages I had to sign at closing. It reads $2500 is to release the lien to sell the house, and not the debt. WTF??? My agent told me both lenders accepted the Short sale, we are in the clear! So, now I don't know what to do. I also have read that Nevada is an anti-deficiency state if you were a primary resident? Has anybody heard of such a thing? I thought having to face the fact of short selling my house was a nightmare... now a new nightmare has occurred. Thank you for any info you may have.

this is why i dont like short sales! unless it is the ONLY option you have left!! there are so mant other ways to stay in your home right now so you dont have to up root your family!! its one thing if you NEED to move but if your lender forced you into this situation i get very frustrated! many pepole do not know they can work out other options beside foreclosure and short sale

[olecapt]

Originally Posted by ashmere

this is why i dont like short sales! unless it is the ONLY option you have left!! there are so mant other ways to stay in your home right now so you dont have to up root your family!! its one thing if you NEED to move but if your lender forced you into this situation i get very frustrated! many pepole do not know they can work out other options beside foreclosure and short sale

For most in Las Vegas the short sale is the best path. Until such times as loan modifications begin to reduce principal to something approaching market value that will be the case.

The OP got caught by a sloppy or non knowledgable agent. A suit against the brokerage would be appropriate if the broker does not have a signed disclosure that the second was left open.

YOu still sound like a shill for a loan modifcaton operation.