Home Equity Loans on Short Sales gone to collections?
Tags:collections, duplex, home equity loans, readers digest, work related injury,
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Home Equity Loans upon Short Sales left to collections?
Readers Digest Version: My mother as well as we purchased a duplex in Kansas to lease out. we mislaid my pursuit due to a work associated injury. We had to reduced sale a first home in California as well as a duplex in Kansas. Once a sales were finished, all was excellent until we perceived pick up calls upon a seconds upon all 3 properties. Im confused, how as well as because can they right away insert debt to me even when they were lines of credit upon homes which have been right away sold….HELP
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Because you owe the money. the short sale did not repay these lenders.
If you didn’t get the HELOC banks to agree to the short sale, then it is still debt you owe. They only care about recovering the money they gave to you in good faith. Just because the primary/first mortgage agreed to the short sale doesn’t mean the HELOC bank has to agree to it.
You might want to talk with a real estate attorney to see if how the title passed to the new owners and whether or not the liens were included in their title insurance or not. Otherwise, I suspect you are on the hook for the remaining debt.
Sorry – wish I had a better answer.
I am not sure why they would be doing it on all 3 especially if the one in CA was your primary residence. CA is a non recourse state, meaning they cannot come after you for the deficiency if it is your primary residence in a short sale. In KS, even if it is a non recourse state, since it was an investment property, they do have the right to come after you for the deficiency.