Posted: Wed May 07, 2008 8:39 pm Post subject: minnesota foreclosure and charge off
I am a real estate agent. Im working a short sale. the first lender(wamu) I couldnt get to call me back for months. the second lender(chase) settled with me for 3k. Then finally wamu said they would settle, now the second charged off the debt and sent it to collections who said they want a full pay off.
The sheriff sale is tommorrow, minnesota has a 6 months redemption period. If the home is foreclosed and the lender takes the property back deosnt the debt stay with the property and the collectors cant come back after the person?
how does this all work and does anyone have any suggestions, this collector is playing hardball. I dont have to much time and the deal will blow then its dead.
thanks for your help.
Did the second lender give it to you in writing that they'll settle the debt with you? if you have a written proof stating that they were willing to settle, then you can at least remind Chase about what they promised. If there's no written proof, I'm afraid, you'll have to pay the amount in collection.
I understand it's hard for you to accept all these, but the fact is, once the debt has been in collections, and if the sale poceeds are not enough to retrieve the unapid balance, you'll have to pay off any debt in collection if you'd like to save your credit from getting damaged too much. _________________ Procrastination is the enemy of your financial sucess
yes it was in writing but the offer expired April 11th 2008. i asked to have it extended. The collector told me since they already charged it off, they is no reason for them to settle for less.
Do I have any barganing chips?
isnt the house the collateral and if the note isnt repaid the lender can have the house ut the loan doesnt follow the person, or is my understanding mistaken?
Now as the property is going to be foreclosed and even after the sale the due debt will not be paid back, the lender can claim deficiency judgment to you.
If you have requested the lender for deed in lieu of foreclosure and if accepted it then the lender would not come after you for foreclosure.
Feel free to ask if you have any further questions.
so a persons's only option to clear this up is to file bankruptcy? How does that work a secured asset transfers to a person?? Its not my property, Im the listing agent and wondering what I should advise my client. The sheriff sale is now today. The bank already charged the debt off, is this deal dead, is there any angles to work the lenders? This is getting way more stressfull than the deal is worth doing. Should I cancel everything and walk away?
I feel bad for my client who is going through hard times, any suggestions??
Is it that your client is going through foreclosure and the foreclosure sale is today? Then I think you cannot do anything now but your client will have to face the credit effect.
Is your client owe more than the value of the property? _________________ Good is the Enemy of Great.
mr listing agent, why did you wait until the day before the foreclosure sale to seek help on this forum? do you consider that due diligence?
now, of course, the sale date was yesterday - i had not seen your original post until this morning, so i cannot be of any assistance, obviously.
did you consult with any legal experts throughout the process here? did your client have a lawyer?
as to your question "so a person's only option to clear this up is to file bankruptcy?" - honestly, there's another option that a lot of people never consider. it is actually paying the debt that is owed - what a novel approach, huh? _________________ George M. Akerley
Relationship Manager
First Horizon Home Loans
37 Jerome Avenue
Bloomfield, CT 06002
860-286-9133
www.gmakerley.net
troyusaguy
