2nd mortgaged owed on house already sold.

[cig610]

My name is Ivette, I live in New York. This past May I closed on a house that I almost foreclosed on. I went through a short sale and sold the house. The house originally had two mortgages, at the time of sale only one loan was satisfied the 2nd loan was released so that i could sell the house and now 5 months later chase handed that debt to a collections agency, they are trying to collect 135K mortgage on a house that has already been sold. The first thought in my mind was bankruptcy, but does anyone have any other suggestions. What options do i have if any? I can not pay 135k and pay for my daily expenses , student loans and credit card debt of 12k..

[Country Living]

How did you sell a house with a lien on it?

[cig610]

The house did not have a lien. I had trouble keeping up with the mortgage, it was about to be put into forcelosure but the shortsale happened before i could loose it to foreclosure.

[FlyingRon]

That makes no sense at all. Did the second mortgage approve the short sale? You can't short sell things unless all the mortgagees agree to it.


And don't start multiple threads on the same subject.

[HomeGuru]

Originally Posted by cig610

My name is Ivette, I live in New York. This past May I closed on a house that I almost foreclosed on. I went through a short sale and sold the house. The house originally had two mortgages, at the time of sale only one loan was satisfied the 2nd loan was released so that i could sell the house and now 5 months later chase handed that debt to a collections agency, they are trying to collect 135K mortgage on a house that has already been sold. The first thought in my mind was bankruptcy, but does anyone have any other suggestions. What options do i have if any? I can not pay 135k and pay for my daily expenses , student loans and credit card debt of 12k..

**A: how did the second mortgage lender Chase release the mortgage? If they in fact did a release of mortgage and recorded it, you may be off the hook. Meaning that they now have an unsecured debt which can be discharged in BK.

[cig610]

I am here seeking advice because I understand much less what happened when I sold this house. I will write word for word the letter given to me by chase and the basics from the letter of the collections agency.


The letter for the second loan states as follows- This letter is to confirm that Chase Home Finance LLC (hereafter referred to as Chase) will agree to accept a SHORT SALE on the above account upon manager approval. Chase will agree to release its security interests in the above collateral upon receipt of $1,000 in certified US funds. Chase requires that we approve the final settlement statement prior to closing and further supplies that no more than 0 be given to seller. This amount is for the release of Chase security interest only. The customer will still be responsible for all deficiency balances per the terms of the original loan documents.

The money was then transferred to Chase, the first loan was satisfied with the sell and the lien was released off the 2nd loan once the $1000 was received by Chase. House sold.

six months later. I received a letter from AMO recoveries stating that my account has been referred to their agency for collections. Stating- Our client, Chase Home Equity has authorized us to settle this account for a reduced amount. This letter is from a debt collector. This is an attempt to collect a debt and any information obtained will be used for that purpose.

The balance is 135k and they are willing to negotiate down to 94k. Still not something i can afford.

[FlyingRon]

The document says you still owe the money, they just gave up the security (right to foreclose on the property).

[cig610]

Right, I understand what the letter states. My question is, what options do I have? If any based on the given scenario.

[racer72]

Originally Posted by cig610

Right, I understand what the letter states. My question is, what options do I have? If any based on the given scenario.

Beg, borrow or steal to get the money or consider filing for bankruptcy.

[dfromnyli]

I really can't see any other good option here except chapter 7 unless you are able to make some kind of reasonable payment plan. And by reasonable I mean $3500 or more per month.