Quote:
Originally Posted by imlars  This is the first time I have heard of this kind of arrangement.
Did you sign a quit claim on the deed when you vacated the house? Do you have anything in writting saying that you are no longer liable for any of that debt? No documentation is not a good thing. This is a moot point in your case because the home is gone but...
Usually when a short sale won't sell the lender will take a deed in lieu. You are basically giving the house back to them. It doesn't look as bad on your credit as a foreclosure does. but you have to make sure you get it in writing that the transaction clears you of the debt.
The equity in the home that secured the second loan is gone. It is now an unsecured debt. After a loan charges off it is sold to a collection agency for cents on the dollar. Once it goes to the collection agency it is no longer accruing interest so you actually benefit from the lender dumping the loan. The collections agency paid less for it than was actually owed, so they will settle for less from you.
I don't really think that you have to worry about judgements or wage garnishments. I've only seen things like taxes or child support having those attached to them. The second can just sit on the back burner until you are able to deal with it. |
Thanks for responding imlars. This is the letter I signed after I spoke to the bank's attorneys who carried out the forclosure sale:
Affidavit of voluntary Vacancy
I, my name, do herby swear and affirm as follows:
1. My name is my name and I reside at my foreclosed address (hereinafter, the "Premises").
2. The following persons reside with me at the premises (list first and last names):
my family members
3. I, and the persons listed above are all of the occupants of the Premises (together, the
"Occupants") on 08/25/2009 I ,and we have all vacated the Premises for the following reason (check the appropriate response):
X Voluntarily;
___To comply with a Court Order ordering us to vacate the Premises or;
Other;
(If "Other", please explain):
4. The following items are examples of actions that may be considered actions, which
cause an "Involuntary vacancy" by (state) virginia occupants.
a. Harassment, coercive or forcible conduct;
b. Unreasonable or unnecessary interruption of heat, utilities, or any other housing
service or the threat to interrupt such services;
c. Verbal, written or physical threats directed towards the legal occupant;
d. The landlord's breach of the covenants of quiet enjoyment or the warranty of
habitability;
e. Forcibly removing an occupant or the possessions of an occupant from a unit, locking the occupant out of the unit, or otherwise denying the occupant lawful access to the unit
f. Any other pattern of conduct that deprives the occupant of the peace, comfort or
enjoyment of the unit which amount to intimidation or harassment of the occupant.
I have read the examples of types of "Involuntary vacancy" listed above, I understand
that this list is not a complete list of all the circumstances which can force occupants to
vacate a property, but a sampling designed to make me understand the differences
between a voluntary vacancy and an involuntary one. I also understand that if a court
order states that the occupants must vacate a property then it is not considered an
"involuntary vacancy".
5. I hereby swear that the owner of the Premises, it's employees, agents, and representatives took no action to pressure, coerce or induce me or any of the occupants of the Premises to vacate the Premises "involuntarily". We expect to voluntarily vacate the Premises on or about 08/31/2009
6. In consideration of the sum of $1,000.00 dollars paid to
by acting on behalf of the JP Morgan Chase (Bank), the Occupants hereby release and forever discharge JP Morgan Chase (Bank) of and from any and all debts, causes of action, damages and liabilities whatsoever of every name and nature that the Occupants now have or ever have had against JP Morgan C (Bank), its agents, employees, successors and assigns, from the beginning of the world to the date of this Affidavit, with respect to the occupancy by the Occupants of the Premises.
Property to be left broom swept and free of all personal property and debris.
Signed under the pains and penalties of perjury this day of
By:
Name:
I have basically vacated the house and I recd $1000.00 from the realtor. Now he has put up the house on the market. Please note that nowhere on the letter there is deed in lieu or anything of that sort mentioned. Neither as you mentioned that there is nowhere mention of that I have been absolved of all the debt. I am now in the wait mode as to how Chase is going to respond. My main concern now is the second loan (HELOC) from DCU- 33K. But I guess, as you suggested, I shall let it go to collection and negotiate with them. How much do you think that they would agree to for a loan of 33K? 
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