No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hi,
Seek an attorney's advice before responding to the initial mortgagor. Seems to me that your deed-in-lieu agreement would spell out the degree of finality of your obligations after executing the agreement. Also, you need to know if yours is a non-recourse state. I live in Florida, a non-recourse state, so lenders cannot pursue borrowers for deficits.
I'm in Illinois:
Short Sales and Deeds in Lieu of Foreclosure
Illinois law prohibits a deficiency judgment following a deed in lieu of foreclosure unless the deed in lieu of foreclosure agreement or a contemporaneous agreement states otherwise. 735 Ill. Comp. Stat. 5/15-1401. The agreement would need to specifically state that the borrower agrees to be responsible for a deficiency in a certain amount.
What I dont undertsand on what base the inial loaner can come after us when the did the deed in lieu of foreclosure with the bank who had the loan. The bank who had the loan doesnt want come after us but after the originator.
@adymax wrote:I'm in Illinois:
Short Sales and Deeds in Lieu of Foreclosure
Illinois law prohibits a deficiency judgment following a deed in lieu of foreclosure unless the deed in lieu of foreclosure agreement or a contemporaneous agreement states otherwise. 735 Ill. Comp. Stat. 5/15-1401. The agreement would need to specifically state that the borrower agrees to be responsible for a deficiency in a certain amount.
What I dont undertsand on what base the inial loaner can come after us when the did the deed in lieu of foreclosure with the bank who had the loan. The bank who had the loan doesnt want come after us but after the originator.
The lender rights will be transferred back to the original lender in a buyback. Personally, I would not respond to their request ... but I'm not easily scared with legal threats.
Thank You for your advice.
@ezdriver wrote:
@adymax wrote:I'm in Illinois:
Short Sales and Deeds in Lieu of Foreclosure
Illinois law prohibits a deficiency judgment following a deed in lieu of foreclosure unless the deed in lieu of foreclosure agreement or a contemporaneous agreement states otherwise. 735 Ill. Comp. Stat. 5/15-1401. The agreement would need to specifically state that the borrower agrees to be responsible for a deficiency in a certain amount.
What I dont undertsand on what base the inial loaner can come after us when the did the deed in lieu of foreclosure with the bank who had the loan. The bank who had the loan doesnt want come after us but after the originator.
The lender rights will be transferred back to the original lender in a buyback. Personally, I would not respond to their request ... but I'm not easily scared with legal threats.
Not responding to legal matters is not a good idea. They don't necessarily just go away. This is how people end up with default judgments and a whole host of headaches when they actually have valid defenses. Yes, there is a difference between this request and an official complaint/summons, but I would take this seriously. Consult your agreement to see if it provided for deficiency, consult with an attorney.
@Walt_K wrote:
@ezdriver wrote:
@adymax wrote:I'm in Illinois:
Short Sales and Deeds in Lieu of Foreclosure
Illinois law prohibits a deficiency judgment following a deed in lieu of foreclosure unless the deed in lieu of foreclosure agreement or a contemporaneous agreement states otherwise. 735 Ill. Comp. Stat. 5/15-1401. The agreement would need to specifically state that the borrower agrees to be responsible for a deficiency in a certain amount.
What I dont undertsand on what base the inial loaner can come after us when the did the deed in lieu of foreclosure with the bank who had the loan. The bank who had the loan doesnt want come after us but after the originator.
The lender rights will be transferred back to the original lender in a buyback. Personally, I would not respond to their request ... but I'm not easily scared with legal threats.
Not responding to legal matters is not a good idea. They don't necessarily just go away. This is how people end up with default judgments and a whole host of headaches when they actually have valid defenses. Yes, there is a difference between this request and an official complaint/summons, but I would take this seriously. Consult your agreement to see if it provided for deficiency, consult with an attorney.
Like I said, I am very comfortable choosing what gets a response from me and what doesn't. You did notice that I gave the same recommendation to the OP that you have right? My opinion is that the mortgagee has an obligation, as defined in the mortgage, to the entity currently owning the mortgage ... not to any entity that may have owned it at some point prior. I don't pay attorneys to do everything for me but others are free to do so. To your point, it, or may not, be a good idea to respond to every written one received from an entity.
We are in cotact with a lawyer. Thank you again.
Since you refinanced with the bank (original lender who is now requesting tax returns), wouldn't the bank have copies of at least the 2006 tax returns?
I am curious how this plays out. Please keep updating!
@IOBA wrote:Since you refinanced with the bank (original lender who is now requesting tax returns), wouldn't the bank have copies of at least the 2006 tax returns?
I am curious how this plays out. Please keep updating!
If it was a stated income/no income verification loan, then definitely not. Back then, even with full doc loans, lenders rarely asked for tax returns unless you were self-employed.