Wells Fargo Seeking Summary Judgement On Lot Loans In Fl

Discussion in 'Wells Fargo Home Mortgage' started by WellsFargoBlues, Apr 1, 2014.

  1. WellsFargoBlues

    WellsFargoBlues LoanSafe Member


    I had 3 lots that I bought between 2005 - 2007 in FL. Needless to say all of them are way underwater. I stopped making payments on them about 4 years ago. I also noticed that 2 of the 3 lots have already been sold by Wells Fargo and they sent me a 1099C this year.

    They have currently filed a lawsuit against me in the state of WA (where I now reside) for trying to claim on the note against the 2 lots they have sold. We have previously tried very aggressively to sell the lots and had offered several short sale contracts to Wells Fargo for these lots, but nothing came out of it.

    What are my options? The lawsuit is going in front of a judge in May and they may ask for a summary judgment. Should I try to settle with them? Not sure if this is going to work since we have already tried earlier. I do not want to declare bankruptcy as I am afraid about the long term impact this may have not just on my credit, but on my day to day and professional career life.

    Need advice and help.

  2. Moe Bedard

    Moe Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hello and welcome to LoanSafe.

    Florida is a recourse state and Lenders can sue you for the balance of what you owe. It also looks like they know you have income from your previous dealings with them. The only ways I know to avoid this are settling the amount owed, claiming an exemption, or filing for bankruptcy.

    If you have the cash and fear the credit implications of a BK will effect your employment, then it may be best to settle ASAP. I would also speak with a Florida Real Estate Lawyer and just get a consultation to make sure of your options.
  3. WellsFargoBlues

    WellsFargoBlues LoanSafe Member

    the fact that I now reside in WA matter?
  4. Moe Bedard

    Moe Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I'm not 100% certain, but my understanding is that if they file in the state you are in based on an out of state judgement, yes they can.
  5. WellsFargoBlues

    WellsFargoBlues LoanSafe Member

    Wells Fargo has already sold 2/3 properties. I have confirmed that Wells Fargo has already sold these properties and this tax bill represents the fact that they have written off the balance amount and I am now liable for the taxes on the balance.

    If I am paying taxes on this, how can they come after me for the residual? Wouldn't this mean that IF I agree to pay via some settlement some part of the residual then I am double paying since I have already paid taxes on this amount as its reported as income on my tax return.
  6. WellsFargoBlues

    WellsFargoBlues LoanSafe Member

    Any pointers on the best way to negotiate a settlement? We offered one through our lawyer, but they came back with a response that we need to pay 90%
  7. Jeffrey L. Shurtliff

    Jeffrey L. Shurtliff LoanSafe Member

    There will be no way to settle with them as they have you in court. Have you answered the complaint? If you have not answered the complaint you can file a Motion to Dismiss using the affirmative defense Rule 12 B(6). This will stall them and maybe they may settle. However if you have already answered the complaint you will not be able to file the motion. If in their Summary Judgment when they file it if their is an error or them not following the law; you can file a Motion to Dismiss using the one ground pursuant to rule 41b. So the only way you can get them to talk to you about a settlement is ask for a pretrial conference from the Court or use a Motion to Dismiss. These Motion to Dismiss are very complicated and you will have to use substantive argument to possibly give them some trouble to get them to talk to you about a settlement.
    Mick likes this.

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