Short Sale Done. House Gone...now 2nd is back

[max39]

When I short sold my Florida home, I had to sign a form from Wachovia that they could come after me afterwords. Chase ( first mtg) basically gave them $3000 and the deal closed.

Now Wachovia sent me a $34K bill and said it has been forwarded to collections.

Question 1: Can they garnish my wages?

Question 2: Should I hire an atty? Or can I really re-negotiate the note, and if so, from what position?

Question 3: I live in Colorado now, can a CO atty handle this,or do I still need to find a FL atty?

Thanks,

[Enough Already]

Hi Max39,
To be sure I understand you correctly, you're saying when you completed the short sale you signed something agreeing that you still owed the mortgage company money on the 2nd loan?

I've heard of people negotiating settlements of the 2nd mortgages for 5% - 10%. You might try that, but be sure you get it in writing. They have to let you off the hook for the mortgage debt, and the note (as Marshall has mentioned in other threads).

I don't know about wage garnishment in CO. I believe they would have to get a judgment against you first. I know if FL they cannot garnish wages of the head of household. Non head of household they can garnish only 25% of your net income.

Good luck!

[Marshall Rosenbach Esq.]

I am also unclear about your situation. But if you've got an outstanding amount of $34,000, I would also try to renegotiate that. If you are not collectible, tell them that and tell them you'll settle for $2,500. You should have a lawyer review the settlement agreement. The issues you raise about collection are governed by state law. Colorado law will govern what they can do to garnish your wages. They will need a judgment before they can do that, so they will have to sue you, get a judgment, and then pursue collection efforts. If you need a lawyer in Colorado to negotiate for you, I can give you the name of someone excellent. Where in Colorado are you?

[max39]

Thanks for the replies.

I didn't really explain clearly, so maybe I should try again.

The Florida house is sold, via a short sale, so I no longer own it. The closing was in May. Chase was the primary mortgage, and I had a home equity loan with Wachovia.

For Wachovia to agree to release the lien, allowing the short sale to complete, I had to sign an agreement that I am still liable for the balance. The person who handled the short sale negotiations told me that I could probably work something out with Wachovia after the fact.

I really did not see that I had a choice since I had lost tens of thousands of dollars keeping my house and mortgage up to date after relocating to Colorado. So I signed the agreement.

Now I have a demand for payment in the full amount of $ 34,000. This did not surprise me. But I don't see how I am in a position to "negotiate" a lower amount.

I live near Boulder, Colorado so a referral would be great if you have one.

Thank you.