Chasing Julie After The Short Sale

Paul,

I did a short sale on my house in Oct 2007.  I had a 1st and 2nd mortgage, both with Chase.  The 1st was paid off, the 2nd received $1000 and now says I still owe the difference of about $30,000.  

They have not sent me a 1099 and when I call, one particular woman says “I remember your case, and you still owe the difference!” 

What can I do?  Are there any laws that will require then to forgive the debt and quit reporting it as a delinquency on my credit report? 

I feel like I should have just foreclosed instead!   But what can I do now?

Thanks,
Julie

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Hi Julie,

If the property went to foreclosure, you’d be in the same situation that you are now.  The second mortgage’s lien would be extinguished at foreclosure, but the obligation would remain.

You should take a look at the payoff letter that you signed prior to closing the short sale.

Read: My HELOC Follows Me

Thanks for the questions and hope this helps.

Paul