Posted on: 15th Dec, 2008 05:35 pm
Hello, I have two homes that is in short-sale and I have not pay the mortgages for over 3 months, the loan is under my name but the title is under my wife. Recently, we received a collection letter from the agency, trying to collect from my wife. We still have one home, and some savings left. The RE agent selling our houses said that if the bank accepts the short-sale then it will satisfy the lien and we would owe anything. I also call the bank and the associate told me that they only concern about their loan, and not likely to place a lien on the home that we are keeping. Just want to make sure and find out whether the collection agency/bank can go after our house and the assets that are under my wife's name??? Since, I borrow from my parents for the down payments, if the collection agency/bank can freeze or collect the remaining assets, I prefer to re-pay my parent. If they can what are my time frame???
Hi jtseng,
If the mortgage is in your name, then it's surprising to me that the collection agency wants to collect the dues from your wife. As your wife's name is not on the mortgage of the property, she will in no way responsible for the payments.
I think the real estate agent is correct. If the bank is accepting a short sale, then it has all the rights to ask you to pay the deficient amount resulting from the sale of the property. If you cannot pay them, then they may place liens or garnish wages. Though the associate of the bank has told you that they will not place lien, it's better if you speak to them in person and clarify the issues.
As far as collection agency is concerned, they will be interested in collecting the dues rather than placing the liens on your property or personal assets.
Thanks
If the mortgage is in your name, then it's surprising to me that the collection agency wants to collect the dues from your wife. As your wife's name is not on the mortgage of the property, she will in no way responsible for the payments.
I think the real estate agent is correct. If the bank is accepting a short sale, then it has all the rights to ask you to pay the deficient amount resulting from the sale of the property. If you cannot pay them, then they may place liens or garnish wages. Though the associate of the bank has told you that they will not place lien, it's better if you speak to them in person and clarify the issues.
As far as collection agency is concerned, they will be interested in collecting the dues rather than placing the liens on your property or personal assets.
Thanks