We are loosing our home to Wells Fargo Mort. and we have a second at DL Evans Bank. Wells want DL to give up the second deed, they will pay them 10% of $26000.00. DL wants us to do a special assets commitment or enter into a stipulated judgement, then every 5 years they can come after us for the difference. Wells will not add a difficintcy clause in our contract. We have a buyer for our home so Wells has not approved the short sale yet. We built this house from ground up with our own hands, then my husband got cancer at the age of 49, which he has been fighting for 12 years. That tool all of our savings, then we lost our health insurance and now our business, due to the economic down turn. Now we don't know what to do. Susan Zenoniani
State/Country relating to question: Idaho
We tried a modification and HAFTA The HAFTA short sale was approved by Wells, but the wanted us to Pay $1700.00 a month until the short sale went through. That was more than our house pmt. which we have not been able to pay since last January.
Hello and welcome,I am so sorry to hear of your difficult situation.You are trying to determine your best option for avoiding a deficiency judgment being entered against you by either of the lenders?Are you also concerned about your credit rating being damaged further at this point, or is that a secondary concern because of the damages which has already occurred?
No, not worried about credit rating
Thank you for the additional information, Susan.If the first lender will not release you from any deficiency you may owe following the short sale of the home, then there is typically little incentive for you to go through the process of a short sale. Often borrowers will simply permit the lender to proceed with foreclosure and determine whether or not to pursue a deficiency judgment.If either of the lenders did seek such a judgment, the best option would typically involve filing for bankruptcy protection and requesting that the debts be discharged altogether, so you are relieved of this financial burden. It is difficult enough to deal with the stress of your husband's illness and losing the property you worked so hard to build, and since you are not concerned about your credit rating at this point, it is usually the easiest alternative and involves the least amount of expense and added stress.I would typically stop working with the lenders if they are not willing to release you from your liability on the loan and then seek a local bankruptcy attorney for a consultation. Since your husband has been ill for so long, there are likely other debts that could be discharged in bankruptcy as well, providing you with some relief from your very difficult situation.
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