Second Mortgage Pay Me?

Hi Paul,

I recently had a home we did a short sale on.  There was a second on the property with Option One. We did the sale in May of 2008. 

Option One agreed to take $1000.  The balance was about $80k. 

Now I am getting calls from a company called Real Time Resolutions.  They wont tell me much because I refuse to give them my social, but they said it was in regards to that property.

Could I still owe even though they accepted a pay off?

-Grady in California

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Hello Grady,

Read: My HELOC Follows Me

You’d have to read the short payoff letter that you signed with Option One.  Not that it will help much now, but there are some strategic ways to deal with this problem before the short sale closes and it always pains me to read ominous anecdotes of continued collection after a short sale; it emphasizes a point that many/most real estate agents and/or short sale loss mitigation companies are negligent in their duty to educate the seller, their client no less.

On a more positive note, Real Time Solutions is a debt collector and subject to the FDCPA.  Since you are in California, you also have the Rosenthal Act.  And, if you are within one year of your closing you also have Section 6 of the RESPA.  Additionally, there’s the FCRA.  So, I say study, watch, and document, and it might end up that this debt collector may owe you money.

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.