Short Sale Surprises

Paul,

I don’t know if this area is in your realm of expertise, but perhaps you could advise where to go for free advice.

My daughter and son-in-law closed on a short sale in Nevada in early April, 2009.  The short sale lasted more than a year, with a potential buyer after the house was on the market for one month in 2008.  My daughter and son-in-law asked at the closing if there was anything else they needed to do or sign to make sure this was final and that no lender would come after them after they signed the short sale papers. The realtor and lenders said “No, and that all debt was forgiven.”  At the time of signing, my son-in-law was without a job.  My daughter is a teacher.  They have two children.  It is now mid July, 2009, and my son-in-law (with an MBA) is still unemployed due to company buy out.

They just received a collection agents notice for full payment due on their second mortgage equaling $69,000 from Chase Mortgage.  They were shocked.  My daughter has cried nonstop.  They are VERY HONEST people.

Besides being unemployed, my son-in-law has a serious blood disorder (not AIDS), but haven’t had substantial medical debts for some years.  My daughter sold her prep at school to work straight through the day to use the money to pay for college classes to earn 32 college credits in one year (on top of teaching full time 200 students)in order to get a pay raise….to get themselves out of debt.  My son-in-law has been unemployed twice in the past 2 1/2 years.  ALL of their savings has been depleted.  They have some credit card debt…but most of their debt is student loans.  They are both in their late 30s.

Bottom line, they need free legal advice.  We don’t know if there is such a free agency to help them.  They cannot afford a lawyer, unless he thought they have a suit against their realtor for misinformation…and the lawyer could wait for payment after the suit.  They don’t think they have a case for a suit; they just need free advice how to get out of this. 

If you know the name of such an agency in Nevada, please advise.  

Thank you.

Sincerely,

Chris

———–

Hello Chris,

Go into Google and type ‘your county’ and ‘free legal aid’ and you should find attorneys who work pro bono. 

Read: My HELOC Follows Me

Thanks for the questions and hope this helps.

Paul

P.S. For others going through this: I’ll Estoppel If You’ll Estoppel

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