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Bank response - forclosure- house included in BK

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    Bank response - forclosure- house included in BK

    House included in Chapter 7, mortgager wants us to do a short sale(have an offer). We will not sign there form which states we are responsible for any losses or damages, and our realtor asked them to re-vamp their form stating the opposite. This was their response:
    " Our financials cannot be altered as I carefully explained to him, including the fact that there is similar language in his note and deed of trust. Bank will not comply with his request for such a letter."
    Do we need to worry here, or are we OK to let it forclose and owe nothing? We decided it was best to let the house forclose, but for the bank to turn down our request when the offer was $10,000 more than the asking price makes us worry that they can get us for something. Current status with the courts on the house is "order of sale issued" with local sheriff's.
    The mortgager told my husband that just because the the house was included in Ch. 7, doesn't mean we would owe nothing, and 99% of the time, they will not come after us (if we were to sign their form) because it would cost them alot of legal fees to do so.

    #2
    If your home was included in your Ch 7 as a surrender, do not sign the bank paperwork for the short sale.

    The lender's information to your husband is not correct. If your BK was discharged, and I am assuming it has been, then you do not owe for any deficit that may occur as a result of the short sale or the foreclosure. The lender is not your friend. They will say anything to get you to sign. Just walk away. This is my opinion and not legal advice. Check with your attorney for details/legal advice.
    Filed CH 7 9/30/2008
    Discharged Jan 5, 2009! Closed Jan 18, 2009

    I am not an attorney. None of my advice is legal advice in any way..

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