[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.

[airics]

they usually won't sue you for the FIRST but the second, you have a problem.. who is the collection agency? go to CreditBoards.com - Credit Help, Credit Repair Tips, News, Forums and try to get some advice...

[airics]

you will need to retain an attorney, hopefully you do not have any other assets that they will attach... if you are in nevada and own another home, i hope you did a homestead on it.

[inveritatemonstra]

A very valuable read for everybody. Who was the secondary lender so everybody can have a heads up on the unscrupulous lender?

Regardless of what the laws are... I want to know what lender would turn this over to a collection agency after receiving money ($2,500).

Money they would not have received if you would have done what the majority of people have done and just walked away and let it go to foreclosure. (Yes.. I know they could still come after you.. but at least they would not have gotten paid $2,500 to come after you for the deficiency. It certainly adds insult to injury.)

And... this is another perfect example of signing lender documents without reading what you are signing.

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???

That was a warning sign of things to come right there...

NEVER TRUST LENDERS...

There is a reason why they are now called "BANKSTERS".

[AA702]

Wouldn't filing bankruptcy fix that problem?

[olecapt]

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.

Talk to an Attorney. You should have received at least a specific disclosure that the second was not being forgiven.

This is a standard problem with all shorts. You have to get a release but if you don't get the loan forgiven they can come after you. A second in a short sale simply becomes an unsecured note. The lender will then sell the note to a collection agency.

BK is the normal cure. Or negotiate a settlement with the collection agency.

[Georgia7377]

Cavalry Portfolio Services Collection Agency. It was Wilshire that I had a 2nd with. This sucks!

[Georgia7377]

This was the only home. My income drastically reduced and had to short sell it. My credit was perfect. Scores were 740 now 690. It hasn't hit collections yet, they are starting the calls and asking me questions. The reason why I thought I was doing a short sell was I can no longer afford the house, so now all financial obligation is gone and it blemishes my credit just a little bit.

[airics]

well if you don't have any other home or major assets, bankruptcy is the answer... once the collection hits your report, you'll lose another 100 or so points...but go to that website, it will prepare you for a defense when they sue

[Georgia7377]

Hey Airics,
thanks for the site creditboards.com I'm learning a lot on the newbies forum. If collections hits my report, I think I can dispute it on my own. Thank you.