Forclosure in TX on Tuesday

**strykr14** · 12-04-2010, 08:58 AM

Hello,

I hope this is the right forum for this. I have an investment home in TX that has gone to crap. My business partner bailed leaving me holding the bag. I'm in the Military stationed overseas and not even in the state so we decided to shortsale. Paid 125K with a 80/20 mortgage, house is worth about 100K

Anyway, we have 2 offers, Mort company 1 wont stop the forclosure unless they get $2500 and approval of the short sale from mort co 2. Mort company 2 hasn't got back to my agent.

So as of right now, it will go into forclosure unless the above 2 stipulations are met.(or I pay them more than what I am behind on)

If they do forclose, can they come after me for the balance once they sell the house?

**Chrisopher Moltisanti** · 12-05-2010, 10:29 AM

Sir,

In my experience, if the bank forecloses, I don't think they look to you for the difference.
That's in a short sale, and that'll depend on the state as well. The bank may bill you for the difference in a short sale.

You must speak with a Real Estate Attorney at once.

Thank you for your service, keep your head down and get your *** home soon.

-CM

**Executive Home Buyer** · 12-05-2010, 11:42 AM

In case you don't know, a few weeks ago the government put a Moratorium on Foreclosures. Therefore, the banks cannot take people's properties away until they sort out the paperwork mess which will take years to sort out.

Suze Orman mentioned this on her show either last week (Sat. Nov. 27th) or the week before.

You can also read about here at the Washington Post.

http://www.washingtonpost.com/wp-dyn...100806850.html

Wishing you luck with this.

EHB

**Chrisopher Moltisanti** · 12-05-2010, 01:21 PM

I don't know. This moratorium is nothing but a dog n pony show. Yeah, our office got memos from the top about it, but the bank isn't going to stop its foreclosures because some loudmouth Attorney General thinks an investigation is warranted and no date has been set to begin the "investigation". Yawn.

**jlandes** · 12-06-2010, 05:39 AM

I have been working with foreclosures and short sales for 7 years including training both realtors and investors on short sales. You need to consult an attorney.
In most cases, the mortgage company will come after you for the deficiency in both a short sale and a foreclosure. In a short sale, normally the deficiency is less than in a foreclosure. There are several ways the mortgage company can come after you for the difference. They have the option of filing a deficiency judgement against you or writing the difference off and in which case the you will receive a 1099 from the mortgage company for the difference (you will have to pay taxes on the difference). For more information consult an attorney or visit

**strykr14** · 12-14-2010, 10:22 AM

Well, The house is still ours. My Agent was able to get a 30 day extension on the foreclosure after the 2nd mortgage company agreed to the short sale - and I paid a a $2500 fee. Then they tried to get 5 large out of me "to ensure the foreclosure will be stopped." I refused and, magically, the forclosure was postponed.

So it's looking pretty good for a short sale. I am hearing a lot of mixed views now about whether or not mortgage co's will come after you for the difference in a short sale or foreclosure.

My buddy just did a short sale and the contract had a clause whereas the mortgage company agreed not to seek damages in the future. I will have to look into that.

**Chrisopher Moltisanti** · 12-14-2010, 10:39 AM

Great news man. Congrats.

**lvagent** · 12-17-2010, 04:05 PM

Wording is important, and get everything in writing. We have to deal with short sale constantly here. The wording that you need is release of lien and release of liability. If the bank agrees to release of lien only you are still on the hook. You also have to look at what the state where the property is located allows. Las Vegas is a deficiency judgement state, so the seller can be on the hook and they can take them to court for the balance. There are exceptions as to wether the foreclosed loan is an investment, or if the loan was refinanced. As far as the moratorium, it's for owner occupied not investments.
And foreclosures are live and well here, we didn't fall into the robo signer categories as we are non judicial foreclosure state.
Thanks for your service and come back safe, all of you.

**strykr14** · 12-30-2010, 05:53 PM

OK, well, I have all the short sale docs here and sure enough, Chase is agreeing to release it "security interests" but is still holding me responsible for the 21K not covered by the short sale.

After doing much reading I don't know what to do. If I do not agree to these terms the house will foreclose, if I do I may owe 21k in the future for a freaking investment property. I know there's a chance they could come after me but would it be worth it to them - there are other forclosures/short sales worth alot more than mine - any (and they would have to be quick) thoughts?

**strykr14** · 03-26-2011, 12:54 PM

Hello,

Thought I'd update this thread with a question. This property is gone - sold in a shortsale that left the 2nd leinholder (Chase) with about 10% of the 25K owed. As you can see from above post, they still me responsible.

So this week I get a letter from them w/my origanal promisary note that I signed when I bought the money-hole of a house stamped with "Paid in Full"

So am I good to go on this?