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Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102599
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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I owned a house in Germantown MD. My husband got orders to

Customer Question

I owned a house in Germantown MD. My husband got orders to NC and we short sales the house. PHH bought all of the loan from USAA, except for the equity loan. (I'm not sure how we got an equity loan since we had no equity. We owed about $77,000. USAA refused to put their portion in the short sale. My husband was deployed and it took over a year for PHH to start to settle the house, so I signed that I would pay that portion of the loan. I just called USAA, and they no longer make people pay on that portion of the loan that they own. I still owe about $38,000. Is there any way that I can get them to forgive the loan. They said they won't, but I don't think that it was fair for them to not include their portion of the loan in the short sale. They obviously figured out that it wasn't fair, because they stopped doing it.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Ely replied 1 year ago.

Hello and welcome to JustAnswer. Please note:This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

I am sorry to hear about this situation. On this website, I do not always get to give good news, and this is one of these times. I understand that hearing things less than optimal is not easy, and I empathize. Thanks in advance for not "shooting the messenger."

1) The fact that your husband in in the service does not give the family more rights per se in such situations.'

2) Short sale is not a right, but a privilege. The lender does not have to agree to a short sale. Thus, PHH did not have to agree to the short sale on their part of the interest in the loan.

3) Ergo, while it was indeed unfair, it was not illegal, and there is really no way to force PHH to forgive the loan. I am sorry.

Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty.

I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.

Expert:  Ely replied 1 year ago.

Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question. I am simply touching base. Let me know. Thanks!