I have a listing that was foreclosed upon in February.  There was a first at 187K and a second at 71 K.  I had a great offer but the banks wouldn't negotiate and the market fell further.  Today my client called.  The second wanted their money.  I know the banks do not have to forgive the debt but my client doesn't have it. We discussed this possibility from the beginning and I think my client will have to declare bankrupcy.  I will call First Tennessee in the morning and see what can be done.  Does anyone have any ideas?

 
Posted by Debbie Holmes on 06/11/2009 06:52 PM   Comments (3)   foreclosure, bankrupcy, shortsale, second, first tenessee  
Post is included in group: Short Sale REALTORS®
Post is included in group: REO
Post is included in group: Realtors®
Post is included in group: Mortgages
Post is included in group: Blogging & SEO

3 Comments on Bank forclosed and second has asked for money.

JUN
11
127,098 Points 2 Featured Posts Localism Sponsor Outside Blog Hit Router

Research you State's deficiency Laws and make sure where your client stands?  I don't know in Florida, in Nevada there is a time limit for the lenders to file.  Good Luck!
9:10pm • #1
JUN
12
1 Featured Post

Prior to this past year a bank really could not feasibly write off a second mortgage unless the client went BK.  For a Bank to claim the loss  the IRS does require that they substantially tried to collect on the debt.  On large amounts showing that the client went BK was the safest outcome for the banks.  Recently I believe that the IRS has softened up on this issue, but it is up to the bank's policy.
1:08pm • #2

I have contacted the bank and it seems remotly possible that they will settle.  I also got the names of three bancrupsy lawyers for my client.  I hope this works.

 

Debbie Holmes
3:31pm • #3

Leave a response…

(optional)
What does the graphic say?
 
Rainmaker_large

Debbie Holmes

Boise, ID

More about me…

Gold Key Real Estate

Address: 915 N. Cole Rd., Boise, ID, 83704

Office Phone: (208) 376-9000

Cell Phone: (208) 761-2551

Email Me

This is a blog about all things real estate (and a few extras). I am now the the Democratic Nominee for CD2, Idaho for the US Congress. I blog about my buyers, sellers, listings, short sales, the real estate market. I am internet savvy and am trying to learn more skills. I like blogging because I get to share information with other real estate professionals. I have two website: http://www.debbieholmes.net and http://homepages.com/debbieholmes1. Happy blogging


Links

Archives

RSS 2.0 Feed for this blog

Find ID real estate agents and Boise real estate on ActiveRain.