Question: My mortgage company, PNC, has accepted a short sale offer on my house. I owe approximately $149,000 and the accepted offer is for $115,000. Coinciding with my application for short sale, PNC moved forward with foreclosure. The court, in Pennsylvania, granted judgement in foreclosure for the owed mortgage balance plus legal fees. Based on what I have read, because I do not have a second mortgage, HELOC and have not refinanced I am at low risk of being sued for the deficient balance after short sale. My concern is that PNC will, however, pursue me for legal fees involved with the foreclosure even though the short sale was accepted post hoc. Can you provide any insight or advice?
Answer: – Most of the time banks won’t come after you for just legal fees, if they come after you, they will file a judgment for the amount they lost because it costs them a great deal more to pursue someone for a deficiency. So unless they are confident you can pay, they typically will 1099 the homeowner instead. And if you’re like most homeowners, the debt relief act will counteract the 1099 or you could claim insolvency. Best to talk to you accountant if you have specific questions.
I’m in forclosure.Pnc has strung me along for almost two years.I understand that they,and all banks,are making billions off these forclosures.The government pays them between 70 to 90 cents on the dollar of your loan,then the insurance pays them then you pay the diff from short sail.I am researching this.The mortgage cos.,banksters are sticking it to us.If your loan is a freddie or fannie,do you realise,they logged 2.5 billion net and paid the treasury 2.9 billion.Now thats how to use taxpayers money.112 billion from the bailout and they are still stealing homes from us.Food for thought.
We have been in a short sale transaction for about a month now. The seller approved our offer and it was submitted to his lender. For about 3 weeks our agent was told the lender was still considering the offer. A few days ago we were told we had verbal approval and the written approval was coming soon.
Last night the seller’s agent called to say the lender had approved the sale not to us but to a Short Sale Specialist company that had been enlisted by his client to buy the home.
So while we thought our application was being reviewed the seller was actually working with another buyer.
Has anyone heard of this before, do we have any legal grounds here since we had a contract with the seller? I would think the lender/seller would be required to disclose the other offer to us and that we would have to cancel our contract in order for them to proceed?
We are concerned we lost to property due to unethical behavior on the seller’s part.
This is the main reason we encourage all our students to “get the deed”. If you don’t get the deed, you start working for free. And as you’ve found out, lost a deal because of it. Homeowners can do anything they want to sell the property or get out of the home. We typically won’t do a deal unless we get the deed first. Sorry you had to experience this, but yes it can and does happen if you let it.