FL is a non recourse state. talk to your cpa about the IRS form 982 which is suppose to offset any deficiencies. the banks can file a 1099 or pursue a deficiency but they can't do both.
from what I have seen they are going to take the easy path which is the 1099. your approval letter should also indicate how they are going to report the credit bureaus....usually says something like settled less than...
what attorney will do this for free and charge it to the banks closing cost without prior approval
just got an approval for a short sale with B of A, I have a recourse refinanced loan , B of A refused to put any kind of language to say paid in full or paid in full for less the owed.
my broker pressured me to sign saying B of A never goes after you even if they dont waive the deficiency - the promissory note at escrow close is zero to me.
I am led to believe the broker is desperate for me to sign because he doesnt care if they go after me , he just wants the commission for all the time he spent and I will be owed $450,000 and sent to collections , loose my house and have to move out with no job and relocate again if I ever find one and still owe the deficiency.
I told the broker to cancel the short sale tommorrow.
do you think I was wise? I told the broker day one - if I cant waive the deficiency - its no deal - but he should have been able to tell me that up front - now my credit already damage at late fees up the gazoo and no ability to pay back more then a few months and need cash to survive.
if the promissory note is zero on the short sale at close - ie no promissory note to sign for the difference but if the deficiency language is still there - is that just a ployh by the bank to sent me to immediate collections as soon as I sign the docs.
even though I am unemployed and insolvent by close to 1/2 million.
what would you do in my case with only days left to decide ??
is an approved short sale still better then no deal at all - or should I stay until I get a job and they evict me?
hard to find a job as a CFO with foreclosure or BK on record if I have to go that route - then I will go from executive to welfare recipient - millionaire to living under the free way bridge -that is how bad things are for me - night and day in just 3 years
This communication is from BAC Home Loans Servicing, LP, a subsidiary of Bank of America, N.A.BAC Home Loans Servicing, LP is required by law to inform you that this communication is from a debt collector.Please write your account number on all correspondence.
6. The property is being sold in AS IS condition. No repairs will be made or be paid out of
the proceeds, unless specifically stated otherwise.
7. Seller is to contribute$0.00, to assist in the closing of this transaction. This contribution
will be in the form of:
a. PROMISSORY NOTE (Signed, notarized and returned at closing): $0.00
If a promissory note is required, it must be signed and returned to BAC Home Loans
Servicing, LP prior to the close of escrow. It is the responsibility of the closing agent to
ensure that the executed and notarized promissory note is returned to BAC Home Loans
Servicing, LP.
If a promissory note has already been signed and agreed to between the seller, investor
and the Mortgage Insurance Company, a signed certified copy must be provided to BAC
Home Loans Servicing, LP at the close of the short sale transaction. It is the
responsibility of the closing agent to ensure that BAC Home Loans Servicing, LP
receives the copy.
*** Sales proceeds will be returned if the note has not been received. This will
result in a delay of the transaction and/or possible cancellation of this short sale
transaction. ***b. CERTIFIED FUNDS CONTRIBUTION (Due at closing): $0.00
8. The sellers will not receive any proceeds from this short sale transaction. If there are
any remaining escrow funds or refunds, it will not be returned to the seller; it will be sent
to BAC Home Loans Servicing, LP to offset the loss.
9. The property must be free and clear of liens and encumbrances other than those
recognized and accounted for in the HUD-1 approval, on which this approval is based.
10. There are to be no transfers of property within 30 days of the closing of this transaction.
11. BAC Home Loans Servicing, LP does not charge the borrower for statement, demand,
recording, and reconveyance fees on short payoff transactions. Do not include them in
your settlement statement. BAC Home Loans Servicing, LP prepares and records its
own reconveyances.
12. Other: All funds must be wired. Any other form of payment of funds will be returned.
Payoff funds must be received within 48 business hours of the HUD-1 settlement date.
13. Other: Should the closing be delayed and the Investor/Insurer agree to an extension of
the original closing date, the Borrower(s)/Seller(s) will be responsible for any per diem
fees through the new date(s) of closing, extension fees and foreclosure sale
postponement fees. The Borrower(s)/Seller(s) will be responsible for any additional
costs or fees over the stated approved amounts.
14. Completed Assignment of Unearned premium and Important Notice Regarding Income
Tax Reporting is to be emailed along with the final Settlement Statement.
If the seller is entitled to receive any proceeds based on a claim for damage to the property
under any policy of insurance, including homeowner's, lender-placed, casualty, fire, flood, etc.,
or if seller is entitled to receive other miscellaneous proceeds, as that term is defined in the
deed of trust/mortgage (which could include Community Development Block Grant Program
(CDBG) funds), these proceeds must be disclosed before we will consider the request for short
sale. If we receive a check for insurance or miscellaneous proceeds that were not previously
disclosed, BAC Home Loans Servicing, LP will have the right to keep the proceeds and apply
them to BAC Home Loans Servicing, LP’s loss after the short sale. We similarly would have the
right to claim the proceeds to offset our losses if it were not previously disclosed and it was sent
directly to the borrower.
munhoi,
I know its been a few days since you posted but I do think you are doing the right thing by asking these questions. An attorney told me many people getting screwed in these short sales because language was not in that relieved them from any liability of a deficiency. I say speak to an attorney. CYA
For the record FL IS A RECOURSE STATE. The lender can pursue the borrower for any loan deficiencies.Originally Posted by cahomeowner
you are correct fl is a recourse state. they are most likely going to file a 1099 versus pursuing a deficiency judgment.
Re: Negotiating Deficiency is Key in a Short Sale Mortgage lenders pursue homeowners even after foreclosure - Feb. 3, 2010
Mortgage lenders pursue homeowners even after foreclosure - Feb. 3, 2010
You lost your house - but you still have to pay
February 3, 2010: 3:21 PM ET
NEW YORK (CNNMoney.com) -- As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right?
Vanessa Corey
Former homeowners may still be on the hook if there's a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these "deficiency judgments" are ticking time bombs that can explode years after borrowers lose their homes.
It can even happen to people who got their bank to approve them selling their home for less than it is worth.
Vanessa Corey, for example, short sold her Fredericksburg, Va., home in April 2008. She and her husband built the house in 2004, but setbacks, both personal (divorce) and professional (housing bust), made it impossible for the real estate agent to keep her home. So she negotiated the short sale and thought that was the end of it.
"My understanding was that the deficiency was negotiated away," she said. "Then, last November, I got a letter from a lawyer telling me I owed my lender $65,000. I had to declare bankruptcy. There was no way I could pay it."
Where the foreclosure plague is spreading
Many homeowners are now in the same boat. And not just those who took out bigger loans than they could afford or who did so called "liar loans" where they didn't have to verify their income.
Because of falling home prices, borrowers who always paid their mortgage but who have run into unforeseen circumstances -- like unemployment or a job transfer -- can no longer sell their homes for what they owe. As a result, they are being forced to short sell or foreclose and are getting caught up in deficiency judgments.
"After the banks foreclose, it's very common now to have large deficiencies with houses not worth the balances owed," said Don Lampe, a North Carolina real estate attorney.
Lenders mostly declined comment. Although Corey's lender, BB&T did indicate it was pursuing more deficiency judgments.
"They follow the rise and fall of foreclosures," said the spokeswoman, who would not discuss Corey's account.
Can they come after you?
Whether banks can and will pursue deficiency judgments depends on many factors, including what state the borrower lives in and whether there's a second mortgage or other liens. But if borrowers ignore the possibility of deficiencies, it could haunt them.
"Once they have a judgment, they can pursue you anywhere," said Richard Zaretsky, a board-certified real estate attorney in West Palm Beach, Fla. "They can ask for financial records, have your wages garnished and, if you fail to respond, a judge can put you in jail."
In the case of foreclosure, lenders can pursue deficiencies in more than 30 states, including Florida, New York and Texas, according to the U.S. Foreclosure Network, an organization of mortgage law firms.
Some states, such as California, are "non-recourse" and don't allow deficiency judgments. But, even there, if the original loan was refinanced, some or all of it may be subject to claims.
Check the foreclosure rate in your state
Deficiency judgments on short sales and deeds-in-lieu can happen in many more places. In these cases, extinguishing the debt is often a matter of negotiating with the bank.
But even when lenders are willing, many borrowers may not be aware that they have to ask for release. So, if you are pursuing a short sale, be sure your attorney asks the bank to release you from any further obligation.
"People shouldn't have a false sense of security that a deficiency judgment may not be later sought," Zaretsky said.
He expects many will be filed over the next few years, based on the fact that banks have sold many of these accounts to collection agencies and other third parties, at discount.
"The parties who bought those notes wouldn't have paid money for them unless they had the intention of acting," Zaretsky said.
Ticking time bomb
What can be scary is that the judgments don't have to be obtained immediately. Lenders or collection agencies may wait until debtors have recovered financially before they swoop in. In Florida, the bank can wait up to five years to file. Once the court grants a judgment, the lender has 20 years there to collect, with interest.
It doesn't have to be a large amount of debt for a lender or collection agency to come after borrowers. Richard Varno and his wife short sold their Nashville home back in 2004 after he lost his job.
It wasn't until 2008, when the second lien holder asked him for $25,000, that he realized he still was liable.
"I told them, 'Hey, you guys released the title,'" he said. "As far as I know, I'm off the hook."
He wasn't. Releasing title does not necessarily end the debt. It's complicated because of variations in state law, but, generally, a mortgage has two parts: a pledge of collateral, represented by the home, and a promise to pay off the loan.
Lenders may release property liens in order to facilitate short sales without releasing borrowers from their obligations to pay under the promissory notes. The secured debt can convert to an unsecured one after the sale.
Zaretsky had one client who was so relieved to have arranged a short sale that he signed every paper his real estate agent shoved at him, even a confession that clearly stated he still owed the debt.
"He had no idea what he was doing," said Zaretsky. "All the lender had to do was go to court to convert the confession into a deficiency judgment."
Lenders are also very inconsistent. One of Zaretsky's short-sale clients was ready, willing and able to pay, but the bank did not even ask; another lender always reserves the right to pursue the deficiency.
Strategic defaults
Sometimes lenders go after borrowers walking away from their homes if they have other assets, according to Florida real estate attorney Larry Tolchinsky.
"Banks are pulling credit reports to see if it's a strategic default," he said. "If you're behind on all your other payments, you're okay. But if you're not, they'll come after you."
If borrowers have any doubts about their risks, they should seek legal advice. Or, at least, call non-profit organizations such as NeighborWorks for advice. According to Doug Robinson, a NeighborWorks spokesman, its counselors always try to negotiate away deficiencies when they facilitate short sales or deeds-in-lieu.
"We don't favor any short-sale contracts that leave any deficiency that can be pursued," he said.
Robinson himself knows what can happen. He paid off a deficiency after his own New Jersey house went through foreclosure 11 years ago.
I read the same article.
so there a couple of things you could do to help offset any potential deficiency judgments. it's important to note that lenders will either file a 1099-C OR pursue a deficiency. they can't do both.
now how do you deal with the potential tax consequences....you may be protected under the mortgage debt relief act if this is your primary residence. if not you could file IRS form 982 (ref publication 4681) if you can prove insolvency before the foreclosure or short sale. this will offset the 1099-C that you will most likely be issued by your lender.
also any short sales in 2009, the lender has to send out their 1099-C's by jan 31st 2010.
Hello! Just need the boards help in our current predicament.
We have a our primary residence in CA and we bought t in 2006 for $485k. We have two loans (purchase loans) with the 1st thru B of A at $388k and the 2nd thru a credit union with $90k left. I did try to get a loan mod last year but got denied. Going through short sale, but then I decided to put a hold on it for a week to see if I can get a loan mod this time. I was approved for a loan mod but the program is not what I would call acceptable (i'll be paying only about $400 less on the first, and the 6 months behind payments will be added to the principal). So now I am planning on just going through with the short sale.
We've decided to pick the best offer at $320k and plan on sending that over to B of A this week.
Should I be worried about B of A and/or the credit union going after the deficit should the short sale be approved? Or is this something that is negotiated during the short sale period.
In this case, the credit union gets nothing. How are cases like this handled? I know these are things that my agent should probably worry but I thought I'd ask around first so I can also understand the possibilities.
I have very little savings in the bank so basically I won't be able to pay up if they go after me. How am I protected via the California non-recourse law? Either way and I am open to either short sale or just foreclose.
Any advise is greatly appreciated. THANKS!!
First, with both of your loans being non-recourse you would be protected from deficiency after foreclosure. However whether you do a Short Sale or decide to foreclose you would still have to deal with tax consequences, so make sure and and look into that as well
Short Sale changes everything, so it really becomes about what you're able to negotiate with your lender. BofA is notorious for not removing liability from deficiency in their approval letters.
You would also need to negotiate with your 2nd to release lien. They are going to want some money and BofA generally gives $3k to 2nd. 2nd might want more, so it is all about how good of a negotiator you will have working for you.
Hi! Thanks for the quick response. How does the debt-forgiveness act work as it relates to my case? If I end up foreclosing and I get a 1099, does the debt-forgiveness act protect me from having to declare the written off debt as income?
I also wonder why after 6 months of not paying B of A has yet to give me an NOD. Is it because of the fact that they cannot go after me for the deficiency in the case that they foreclose the property? Or is it because they are just really slow?
So as I understand it correctly, if I do proceed with the short sale and I get approved, it is during this negotiation period that I would know if they're gonna go after me for the deficits or if it would just be a matter of me having to bring a bit of cash to the table at closing to make both go away? I also understand that in this negotiation process, I need to make sure that it would be written somewhere a stipulation that relieves me from any further financial obligation?
Thanks again,
Doods
Mortgage Debt Forgiveness Acts protects you from federal taxes, but not CA. So you would still need to deal with CA taxes. Consult CPA for details, but generally if you're insolvent that could help as well as any deductions that you might have.
It is because they have millions of other houses to foreclose on, so they are not in a hurry to take them all back.
You would get an approval letter from you lender which either relieves you of liability for deficiency, doesn't say anything about liability or tells you that they will pursue deficiency.
Each Short Sale is different... there are a lot of variables, so it is impossible to say what they will agree to.
RE: my 2nd loan
If I refinanced the 2nd loan to the current CU a month after I originally closed without any cashout, does my 2nd loan now still qualify as a "purchase loan". can anyone point out any potential consequences if i proceed with the short sale under this scenario? i am wondering is i still fall under the non-recourse provision here in california and also what are the potential implications such as tax.
In general, are the banks quicker to go after deficiencies from foereclosures or short sales? I was thinking it's better for them to go after our deficiences soon , file for BK7 and start fresh. Does that make sens to anybody?
It is based on which state your property is loacted.
You may want to read this:
Recourse v. Non-Recourse States
This is a good forum, very informative! In my opinion, whether it be a Real Estate Agent or Attorney, a good negotiator should be able to get a homeowners deficiency waived. I'm in Florida, a deficiency state, and it's rare that we see lenders go after homeowners for the deficiency amount.
Usually 2nd lien holders with large HELOC's are more likely to pursue a promisorry note! In alot of the cases we've been able to successfully get these waived, and if the lender just would not budge we are at least able to negotiate the debt down substanially.
BOA/Country Wide are the absolute worse in the industry! Your looking a minimum of 6 months and that's only if you have an investor who is able to put in a offer right away!
I was wondering if you took additional steps and your outcome. Thanks in advance.
I'm a little confussed when you say, "took additional steps and your outcome"
I don't know if this well answer you question, but we just got a recent approval from Aurora on Friday (4/9). We stated from the very beginning that our offer, "Constitues Payment in Full". It's written in our contracts and Cover letter to the lender. The approval letter from Aurora stated that they will issue the homeowner a 1099c, which is great because I know our client is insolvent and will most likely be able to have the IRS waive the entire balance. (We never give legal advice and always advise our clients to seek professional assistance).
The Short Sale package was sent in on 2/17. Not saying all are this easy, but if the file is handled correctly there is a good chance that deficiency amount will get waived.
Hi Moe,
We are in the middle of negotiating a short sale with Chase on a rental property here in Arizona. We received the approval letter for the short sale but we then requested a deficiency waiver and after hemming and hawing for a week, Chase said that they don't issue those (which I know is a lie). We are going to be consulting with a real estate attorney; can he help to accelerate this and get us the waiver we need? Also, AZ is a non-recourse state, so if we were in foreclosure, we know that Chase cannot come after us for the deficient amount but have been told that we do need this waiver with a short sale; is that true according to what you know? Thanks in advance.
Good Morning,
I am in the process of requesting a short sale through Chase. I am estimating that I may have a deficiency with EMC of about 20k. Is it possible to negotiate an amount an do a promissary note for the remainder?
After many months of back and forth, the price and details are agreed to by the SS buyer, the lender and me. So the letter I got though the REA from the lender had the following: Lender will not pursue a deficiency judgment or require that sellers sign a new promissory note if the short sale closes subject to these conditions of approval. However, if the short sale transaction does not close, then the referenced loan secured by the note and deed of trust shall remain in full force and effect and the lender will pursue all remedies under the note and deed of trust allowed by law.
Does this sound like all bases are covered on the ability of the lender or any collection agency to come after me?
Sounds good to me - CLOSE the sale!
Key Bank is our 2nd mortgage and they are agreeing to the short sale, but will not settle the loan. They are requiring that we sign a deficiency agreement for 33K. Key Bank will not drop the interest rate at 6.9%. They will also tack on all late fees. They agreed to $90 per month which is all we can make in payments. But that will continue to increase the size of the loan because of the interest added. We cannot qualify for bankruptcy because we have no other debt. This is it. We are very responsible with our money. Any thoughts on how I can get them to settle this out? The 1st mortgage is already contributing 8K to settle the 2nd. Key Bank will take the money, but will not forgive the deficiency. The total loan amount is 41K. Any ideas on how we can try to get a settlement?
Hi All,
I've been searching around for Short Sales advice and stumbled across this site. Very insightful information, thanks to all in advance!
I'm short selling my home after months of negotiating a loan mod only to have that process fall short of where we needed it to be at. We decided to short sale rather than walk away because we wanted to do the right thing morally(in our minds at least)
Our short sale was approved by Aurora and recently approved by Chase; however, the language from Chase states that they are not waiving any deficiencies. We live in San Diego and are trying to figure out how we should respond? Both loans are non-recourse so I'm not sure of the One Act Law covers us from Chase coming after regarding the deficiencies outside of the $10k they are getting. Any advice or similar experiences out there that could be shared would be greatly appreciated.
As a follow up to my original post, my real estate agent said they cannot dictate the actual terms of the agreement and that they need to just offer more $$ with this being the final settlement?? Is it just me or does that seem like we are setting ourselves up for a bidding war?
Short sales are no easier than modifications. It is usually better for the banks to do a short sale than to do a modification, and foreclosure is worse for them than a short sale, but DON'T BE FOOLED INTO THINKING THAT A FORECLOSURE IS WORSE THAN A MODIFICATION. It depends on your circumstance. They get a lot of write offs with a foreclosure and they get a lousy 1000. or 1000 a year if they do a modification.
If you are on the verge of giving up to do a short sale, guess what? You will have to go through the same HELL. Same exact paperwork. Same situation of being ignored. Same silly negotiations, and in the end you end up with bad credit and no home.
Before you give up on your MOD. Go online to your state attorney general. Take 5 minutes out of your day and post your complaint. Tell him your story.
in which cases would this be 'worse', especially short sale vs foreclosure?
I must disagree. You are asking for solicitation by going to an attorney. Their goal is to get you to go bankrupt. There is more than enough information on the internet for you to decide how to proceed.
If you aren't sure you want to go BK do not go to an attorney. If you want to go that route then go ahead speak to one knowing full well that their objective is to get you to use him to represent you.
Maybe i will need a financial expert or a lawyer because i can't relate on this but it's very interesting topic.
Moe,
I closed my investment condo in Fl 6 months ago and thought all was well. I was fooled into believing that the promissory note I signed completed my obligation.
Seems like that was only for the PMI company now Chase has assigned the difference to Oxford.
Why did I sign the note?...Im baffled now.
Also, I have an email trail from myself and the realtor questiong the negotiator about the deficiency prior to closing and that I would not close if there was....all requests went unanswered.
Approval letter never mentioned deficiency, only referencing that the difference may be considered forgiveness and reported to IRS. Negotiator specifically told attorney and realtor verbally that Chase is not pursuing. Handwrote a waiver to not accept deficiency on approval. Never kicked back.
Now, my attorney says we may have to file and seek a "Declaratory Judgement".
What do you think of all this?
My 2nd mortgage (purchase money) was refinanced for a lower rate. I never took out any cash out, just wanted to lower my rate. Is it considered a recourse loan because I did this? I live in CA.
Moe,
I am curious to hear what happend in your case. My lender has approved the Short Sale but wants $50,000 from me. Needless to say I dont have that amount in the bank. So what are my next steps?
I was in foreclosure despite a short sale pending (house was on the market for 3 years and I had moved out of state due to my job, which I was eventually laid off from). Two banks (Chase and Amtrust, original mortgage was an 80/15). Sticking point was the deficiency. Agent selling the house said that was finally solved, they were given 2 weeks to close the house. I was in the middle of chemo and didn't see anything but the sale papers. Now it turns out the deficiency was NOT solved and both banks are coming after me. Now what? Is it possible to negotiate the deficiency after the fact? I am having trouble even getting anyone at either bank to return my phone calls to ask. State involved is Idaho if that matters although I now live in another state.
Does anyone have any useful names and phone number of people at either bank - Chase or Amtrust (Amtrust is being administered by New York Community Banks since it was shut down) who are high enough up the food chain that they might be able (and willing) to help?.
Thanks,
Liz
It is unfortunate as to what happened in your case. Your Realtor obviously just wanted to close the sale without any regard as to what will happen later. But now you have to deal with the situation. One question I would like to ask is when you say that banks are coming after you, how is that happening exactly? Are you receiving phone calls, if so who is calling? If not calls is it letters, if so then there should be contact information.
At this point you have several choices, you either can ignore the banks and not do anything about deficiency... there is not much evidence out there that lenders end up suing people after foreclosure, but of course there is some risk.
Another choice is to settle with them.. possibly 5 to 10 cents on a dollar..
If it were me and I were in your position, I would just ignore them... check your state laws as to what the statue of limitation is for them being able to collect. Each state is different, in CA for example it is 4 years.
By the way call your Realtor and request him to send you the Short sale approval letter from both lenders. The letters should let you know for sure if you're legally liable for deficiency.
So how do you solve this if your agency did NOT get in writing they were going to forgive the deficiency? Verbal agreement they were per real estate agent, nothing in writing it turns out. This happened to me the end of January 2011 (80/15 mortgage at purchase, the 80 was resold by the original loan holder to Chase, the 15 kept it Amtrust, and the 15 gave us 2 weeks to close. Closed before I saw the papers from the banks and I was in chemo besides that week). Banks are Chase (heaven help us, they kept posting the foreclosure auction with the short sale pending) and Amtrust (receivership and administered by New York Community Bank at this point). I can not get either bank to respond.
What should I/can I do??? State is Idaho if that matters.
Lenders always send approval letters when Short Sale is approved. Did your Realtor not get anything in writing when lenders approved the short sale? If you can't get anything from the Realtor find out OOP (Office of the president) contact information... Chase info should be on this forum, Bank of New York you can Google... and contact them. They should be able to provide you with approval letters.
If they did not wave deficiency in writing then you're most likely responsible for this debt.. you should consult an attorney in your state to confirm.
And if you're responsible then you have several options as I stated in the previous post.
Thanks for answering. I *think* I have seen these letters after the fact of the sale (I already asked my agent to scan and send everything he had pertaining to the sale) and they do not address the deficiency one way or another. Right now Chase is just continuing to send bills, Amtrust sent me a nasty-o-gram stating the balance is due March 31. Their person went to the school of "break knee caps and threaten with a gun" school of collection. Sigh.
Idaho has a 90 day period to file for the deficiency if it is foreclosure. Since Chase put me in foreclosure and then cancelled the sale each time (short sale pending for 7 months, in foreclosure for 6 months) the Idaho lawyer I talked to today (I currently live in Mississippi) thinks the foreclosure rules will apply despite the short sale. He does admit the law does not address it one way or another when you are both in foreclosure and have a short sale pending.
Amtrust sure seems like they are going to come after me. If nothing else my credit will continue to be dinged each month due to non-payment.
Anyone know if this lawyer is right or know if there is anything that actually addresses this situation? I could only find short sale OR foreclosure information, not when both are happening at once.
Thanks,
Liz
I also meant to add to my previous answer that my Idaho short sale, in the sales agreement I was not required to bring any money to the table. Originally Amtrust (I had an 80/15 mortgage, of which Chase bought the 80 from Amtrust and Amtrust hung on to the 15) wanted me to bring a lot of money to the sale and then did not require me to bring anything.
Liz
I really do not know anything about Idaho laws pertaining to either foreclosure or short sale, but I can't see how foreclosure rules apply if you have completed a short sale... that just doesn't make sense to me.
I think at this point you should be looking into short sale laws and talking to another attorney.
Your issue seems to reflect dual track that lenders use and Congresswoman Maxine Waters of CA is trying to address through legislation. Sound like you really should have a real estate lawyer look at your loan even after the fact. Doesn't seem like lenders stop sales for our benefit; could be something there.
I think what you're referring to is lender foreclosing on a house while at the same time working on modification or short sale. OP has actually completed Short Sale so there was no problem with lender foreclosing in this case while working on a Short sale.
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