My mortgage company, PNC, has accepted a shortsale offer on my house.

October 30th, 2010 by Jarad

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.

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One Response to “My mortgage company, PNC, has accepted a shortsale offer on my house.”

  1. wilson Says:

    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.

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