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TJ, Esq.
TJ, Esq., Attorney
Category: Legal
Satisfied Customers: 11783
Experience:  JD, MBA
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I need info on a mortgage deficiency. My home was foreclosed

Customer Question

I need info on a mortgage deficiency. My home was foreclosed in July 2012, action started in 2009. I just received a letter via UPS from Chase regarding the second mortage taken 10/07 . They claim to be the receiver for Washington Mutual who held the 2nd. I never received a letter of a change in lenders for the 2nd and this is the first communication with Chase.
Thye are offering a settlement of $3250.94 for a one time payoff or 2 option of terms $3528 /12 months or $4068 /36 months.
I am suspicions of this offer since the original debt was over $80,000 .
Would they need an actual judgment following service to collect. We do own a new home and have assets but income is very limited as we are seniors and retired
Submitted: 1 year ago.
Category: Legal
Expert:  TJ, Esq. replied 1 year ago.
Hello and thank you for the opportunity to assist you. My name is ***** ***** I will do my very best to answer your legal questions. Unfortunately, if the first mortgage was foreclosed upon, then the second would not be considered a deficiency since it's a completely different loan. The loan would still be due in full. Accordingly, the offer does sound legitimate, though I do understand your point, as it seems very odd that the lender would even bother trying to collect just $3500 or so on $80,000. Having said that, my guess is that they don't want to bother suing since most people would likely file for bankruptcy ... they're not going to repay $80,000. So, the lender may feel that $3500 or so is the right amount to ask for. It's low enough that most people may be able to afford it in a lump sum or over a few months, and they'll be glad to do it because it's such a reduction in what they owe. This saves the lender the need to hire an attorney at fight this in court as well. So, the bot***** *****ne is that it sounds legitimate. Whether or not you want to accept the offer is up to you. If you refuse, you could be sued. On the other hand, it seems doubtful that the lender would sue since it's unlikely it would be able to collect on the full amount. But is it possible that you'd be sued? Yes, and then you'd probably want to file for bankruptcy, which may be worse for you financially. So, I would seriously consider the offer.Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied.