| Short Sale lies
What is the name of your state (only U.S. law)? IN
Executive summary: bank agreed to short sale they received what was agreed, they turned the balance over to collection, I copied documents to the agency they stopped collection activity, now a new collection agency is contacting regarding collection of the amount not paid toward the original balance. Do I have any options or do I have to play the games and continue to be called by a parade of bank collection agencies?
Details: Eighteen months ago while living in MA my previus employer eliminated my job and others. After 4 months of making mortgage payments without a job I found another position in Indiana at less than 50% of the previous salary. The housing market in MA had already gone done and I was unable to sell the home for more than 80% of the original purchase price (24 months earlier). The home had a first and second mortgage totalling 95% of the original purchase price.
The bank holding the second mortgage agreed to a short sale. The house was sold. The first and second mortgage were released, title transferred to the new owners, the bank holding the first mortgage was paid in full. The bank holding the second mortgage received the agreed upon short sale balance.
Five months after the closing a collection agency called representing the bank seeking payment in full for the amount that reduced from the original balance to the short sale balance. The agreement from the bank indicated they would accept the lower amount and the debt would be reported as closed for less than the original balance. The collection agency was rude in the conversations. Eventually they received from me copies of all the correcpondance from the bank regarding the short sale agreement, copies of the closing statement, copies of the wire transfer for the agreed upon amount. The copies were also sent to the bank contacts, but they never return phine calls. The collection agency stopped collection efforts. Everything appeared to be resolved.
Now, 3 months later a new collection agency is starting all over with the rude conversations trying to collect the balance again. I did get a laugh out of them when I told them it was no wonder the bank was seeking federal bailout money they could not keep track of what they were owed. The new agency refused to give me any information regarding the bank department or contact person responsible for placing the account. they will not contact the bank to verify my story. They have told me I must send copies of everything to them and they will determine what to do next. For now they want me to tell them how the balance will be paid. Bottom line it won't.
I know the bank essentially did a favor in accepting the short sale amount. However. I am tired of the fact they either can not keep track of what they agreed to accept or they are dishonest. What options do I have, if any? | 
12-15-2008, 09:35 PM
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