Bank suing you after a short sale?I was told that if a house is sold on a short sale, and you make payments on a second mortgage that the first bank can sue you for the money they lost on the short sale in Michigan. I thought that when you short sale a house the bank agrees to take whatever it was sold for and you walk away with nothing. Maybe they... |
No,if they agree to the short sale they can not go after the money. You keep the rest of the money and only pay state and federal income tax on it. They send you a 1099, not a law suit.
It may depend on what's written in your mortgage contract. If done properly, short sales do allow the borrower to walk away free and clear and with no worries.
I'd consult with a real estate lawyer and go from there.
http://open.salon.com/blog/helpradio1/20...
http://shortsaleinsandiego.com/2009/05/a...
Regardless of what the intake was for the short sale the BANK will reclaim what is owed, regardless of second property or not.
You can apply for Debt Forgiveness (this is not bankruptcy) on the original amount owed or even debt relief services.
what did your lawyer tell you about the law BEFORE you did the short sale.
The bank is due their money.
