Quote:
Originally Posted by cmcgreanor  faith,
I asked for the letter from the equity solutions department, and they will not provide one. Did you receive one? I do have the letter that says it will be forgiven. |
Yes, I have received a letter from
CW stating that
CW, its insurers and investors will not pursue any deficiency judgment against us. It also stated that the name of the buyer no substitution, the title company, 5% commission to the agent and no costs to me. It took them 4 months to approve the Short Sale because they will not give me the letter, until I told them that I will not sign the escrow if I don't get the letter that they will not pursue any deficiency judgment against us. They want me to sign a promissory note, I said no, I have a Purchase Money mortgage and never refinanced and therefore I am protected by CA Section 580b which states that they can not pursue any deficiency judgment against us once the house is sold. I have told them that they can foreclose the house and I will file for bankruptcy and it's their loss not mine. I told my Negotiator look, I was planning to hire a bankruptcy lawyer which would cost me $3,000, how about giving that $3,000 to the 2nd mortgage instead of hiring a lawyer. The trick worked, Fannie Mae bought out the 2nd for $14,000. I received the letter by mail, my agent faxed me a copy before I got the original letter stating they will not pursue any deficiency judgment against us. I then emaied my Negotiator about the 1099C, and asked him who's going to send the 1099C to me and how much was the balance forgiven. He responded and told me that the investor will send the 1099c and told me how much was the balance forgiven. That's all I needed.
The reason why you need to get it in writing is for your own protection.
Once you sign the mortgage without a letter stating forgiven, paid settled in less than full balance, then you can not dispute whatever they report to the credit bureuas. The title company, if they are honest and reputable company will be sending you paid in full satisfaction and also the County Recorder's office in 3 or more months after escrow.
CW still reported to the credit bureau that I owed the 2nd mortgage. I have disputed everything and wrote
CW, BA and the credit bureaus with all the evidence that I kept and sent them these copies.
CW and BA and the credit bureaus responded, they changed the report to zero balance, Paid, Settled in Less Than Full Balance.
I think as long as they have a letter stating forgiven or will be reported as Paid, Settled in Less than full balance will be helpful to you. You should also ask by email or letter stating how much was the balance forgiven for income tax reason. Because they did not send me my 1099C inspite of all my attemps to get it. They don't send you the 1099C because of their last attempt to get you sign the promissory note which I did not do. I used all the letters, reconveyance letter from the title company and the Country Recorder's office and the Negotiator's email and attached it to my income tax which was accepted by IRS and Franchise Tax Board.
Short Sale is a very hard work, very draining and frustrating process. But be of good cheer, be bold, patient and persistence. Your answer is only a prayer away. My thoughts and prayers will be with both of you and take care.