babyblue20212004 asked:


My fiance and his ex wife did a short sale on their house together. They sent his ex wife the 1099 that is standard. However, today my fiance recieved a call from a collection agency for the bank that they did the short sale with trying to collect money. They did the short sale over a yr ago. This is the first attempt to contact either my fiance or his ex wife. Can they do that? Neither has ever recieved mail about it or warnings or phone calls. This came out of nowhere. What should be done?
It showed that the remaining debt was zero though? Their debt had been satisfied.

Bobby

4 Responses to “Short sale on house?”

1. skcs11 on February 16th, 2009 8:28 am

   verify who you are talking with, it could be a scam

2. Denise K on February 17th, 2009 4:01 pm

   Contact a reputable Lawyer in your area, that handles Real Estate Laws.

3. mazziatplay on February 19th, 2009 11:04 pm

   It is not uncommon for lenders to pursue a deficiency judgment when they allow a short sale. The balance is, after all, still a valid debt to the lender.

   In all probability, the documents your fiance and his ex signed at the time the lender agreed to the short sale provided that they were still responsible for any remaining debt.

   This is not going to go away. The only way to void the debt is bankruptcy.

4. theshadow01 on February 22nd, 2009 11:50 pm

   When a short sale is done the balance of the loan is still owed. They do not generally send monthly statements (some do), but payments are still expected to be made.

   If the balance has been cleared with the lender, proof of payment will get rid of the collection agency. If the balance has not been cleared a payment plan should be set up.