Closed on 2nd home SS in 4/10. Signed note with PMI company. Paid off note. During this time Chase continued to come after me for balance of $180.000. Sent to collection agency, and CA has no idea what this loan is about...short sale, foreclosure, not a clue. Chase finally writes of debt and sends me $0 dollar balance letter. Reports to Credit bureau as settled and paid in full for less than full loan amount.
They were late in sending the balance to PMI company for payment. When I called PMI and asked why Im being "chased" they were extremely cooperative yet told me that they never heard of anyone signing PMI note and then getting letters from Chase for balance. They told me...see attorney because all we can tell you is that Chase made a big mistake here.
Two years later, balance after PMI payment is $121,000. Chase sends me a letter 6 months ago..."Let's settle for $63,000. I called my attorney. He tells me disregard it. Okey, last month I get another letter. Listen to this..."Let's settle for $13,000 and you own your home free and clear".
My attorney told me that he was considering calling them and informing them that I will pay the $13,000 and get the property free and clear. Problem is this was a short sale completed two years ago. According to Chase, I still own the property, although they gave a satisfaction (not lien) release to sell it.
He tells me they are grasping for whatever they can get and that internally they are probably never going to be prepared to issue a judgement. I never received a 1099-C and never received a letter of no deficiency yet their closing letter alluded that this "may"be considered forgiveness and if so, reported to IRS.
Any legal view on this end as to how I should proceed. Property is in Fl and I believe I have 3 years left before they can stop chasing me for money. Also, how can the discharge the debt to zero and still try to come after me themselves (along with CA)?..Legally, I would think that they are writing off and taking a loss but still trying to get what they can?
Thanks for any input.