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Originally Posted by brunok  Wow good for you! I will keep that in mind if they come to me with a note.
Is bankruptcy filing necessary though if you are protected by 580b?
Thanks for all the information. |
Bruno,
When I told my negotiator that I would rather file for bankruptcy and let the house foreclosed was to intimidate him and to scare him. When they approved the Short Sale, I told him that I need something in writing that they will not pursue any deficiency judgment against us even though I know that I am protected by CA Section 580b since I have purchase money mortgage and never refinanced.
He sent me a letter and all the instructions about escrow and statement that they will not pursue any deficiency judgment against me. I sent an email to make sure that there's no trick about this letter, he confirmed it via email repeating they will not pursue any deficiency judgment against us. I just want to make sure how much the balance was forgiven, so I sent an email and ask about the 1099C and how much the balance forgiven. He responded that the investor will sent the 1099C and told me how much the total amount owed that was forgiven.
Thank God I asked for the letter and emailed him, they did not send me the 1099C inspite of repeated phone calls and requests. I used my Turbo Tax software and completed the form 982 and put the amount that was forgiven stated in that email. I sent also copies of Full Reconveyane letter that I received from the County Recorder and attached it to my Income tax and form 982 and a letter explaning to the IRS & State tax about my situation. They have accepted it and refunded me $90. I paid IRS $27.
When I checked my credit report, they have reported that I still owe the 2nd mortgage. So I disputed it with the credit bureaus and sent letter to the lender which is now B of A attaching all the copies of emal and letter they sent me. They changed the balance to zero and paid as settled less than full balance.So I did'nt have to file for bankruptcy.
Short Sale affected my credit score but not as much, my credit score used to be 750 now after Short Sale is down to 677. I have put a Fraud identity on my credit because
CW sent me a letter stating that few of their employees stole customers confidential informations like ssn, names, etc and sold it for money, the customer's that was affected was about 1 million. The employees that did it is now in jail.
Learning how to deal with your lender is the key how to negotiate with them. Arm yourself with information and knowledge and say a Silent Prayer, asking God for favor daily is the key to successful negotiations.
I really thank God for Moe and this forum, this is one of the places where I found informations free of charge. God bless him always.
As far as bankruptcy, if you decide to do that, have a free consultation with a Real Estate Lawyer with expertise in Bankruptcy and Loan Modifications. Be sure you check the attorney you want to hire online to see if he is license to practice law and how long he has been practicing law. Check also the Better Business Bureau to see if they have complaint against him.
Here's the link for attorney search, jsut in case you need it:
Attorney / Member Search
Prepare your heart because any negotiations with creditors and lenders is a very long, tough, frustrating, draining and emotional process. A lot of sleepless nights and asking people to pray for us. Please be patient, but be bold and persistent at the same time.
God bless you and take care.