Foreclsure...bank trying to pursue judgment.

[Sundevilous]

I was told by my real estate agent that if I did a short sale or foreclosure on my home in Arizona, than both the first mortgage and Home Equity Line of Credit (taken out 9 months after home purchase) would both be relinquished in a short sale or foreclosure. I proceeded with the short sale solely based on this information. It wasn't approved and went into foreclosure. Now the bank is pursuing judgment against me to garnish my wages. Unfortunately, I can't afford to retain an attorney. Is this a case I can win, even if I represent myself in a civil suit against this realtor? I also have email documentation asking him specifically how both loans would be treated. He responded with "Don't worry, I have it!" I also have a witness to him telling me this verbally. He was aware of my situation and what type of loans I had, and instead of asking me to seek legal advice, he mislead me telling me both loans would be forgiven. The loan amount is for 75,000, and 2,000 in accrued fees. I'm facing financial ruin and bankruptcy because I made a decision based on the advice given to me by the real estate agent.

 

[Mass_Shyster]

I was told by my real estate agent that if I did a short sale or foreclosure on my home in Arizona, than both the first mortgage and Home Equity Line of Credit (taken out 9 months after home purchase) would both be relinquished in a short sale or foreclosure. I proceeded with the short sale solely based on this information. It wasn't approved and went into foreclosure. Now the bank is pursuing judgment against me to garnish my wages. Unfortunately, I can't afford to retain an attorney. Is this a case I can win, even if I represent myself in a civil suit against this realtor? I also have email documentation asking him specifically how both loans would be treated. He responded with "Don't worry, I have it!" I also have a witness to him telling me this verbally. He was aware of my situation and what type of loans I had, and instead of asking me to seek legal advice, he mislead me telling me both loans would be forgiven. The loan amount is for 75,000, and 2,000 in accrued fees. I'm facing financial ruin and bankruptcy because I made a decision based on the advice given to me by the real estate agent.

In order to win, you will have to prove that it was reasonable for you to rely on financial advice given by someone whose only obvious interest was the sale of your home.

The agent probably has errors and omissions insurance. If so, that means if you win, you will be able to collect. It also means the insurance company will be paying for the agent's lawyer.

 

[Sundevilous]

Since I have documentation and a witness, do you think I have a case against this realtor? He never said I should seek legal advice, instead he gave me legal advice just to get the sale.

 

[nextwife]

It wasn't approved and went into foreclosure. Now the bank is pursuing judgment against me to garnish my wages.

You said there WAS a foreclosure? Did the short sale NOT close?

If the first foreclosed out the second, you still owe the debt. And, if that is what happened, what the broker told you is irrelevent, as your dilemma is a result of the foreclosure. BTW_ your jr loan, what did the money go for? It wasn't a purchase mortgage.

 

[divona2000]

...I proceeded with the short sale...It wasn't approved and went into foreclosure...a civil suit against this realtor?...

A civil suit for what? The bank did not approve the short sale, that is their right, to approve or deny. Nothing to do with the realtor.
Or are you saying the realtor guaranteed the short sale approval?

 

[Sundevilous]

The HELOC was for 75,000K plus 2K in accrued fees. I attempted a short sale, but the bank did not approve it because we got the offers too late, so it went into foreclosure. The bank has every right to after me for the second mortgage, however I'm trying to sue the realtor because he told me that both the first and second mortgage would be excused in a short sale or foreclosure, so I made a decision to proceed with the short sale...ultimately foreclosure based on this information he gave me. I put my trust in him, which may be my demise, but he gave legal advice that he was not entitled, or lawful to give and I'm in financial ruin because I relied on that advice. I understand that I should've not taken that advice and should've done my own research by seeking an attorney, but I trusted him and it was in his fiduciary responsibility to inform me of the risks of the short sale and not give legal advice since he is not a licensed attorney. I'm basically screwed.....