Refinance Mortgage

i received 1099,had to claim 30,000 as profit, which was amount of judgement , can they do both?
I appreciate your previous answers,I would like to give a little more info. This was not a short sale ,this went on forever with Ocwen mortgage after 2 years they did foreclose a judgement was issued for around $30,000. At the end of the year they sent me a 1099 in which I had to claim the 30,000 as income. My question is , they cant have a judgement against me if they wrote it off can they?

If you received a 1099 then you probably did what is called a short sale. This is when you (the borrower) and the bank agree to sell the home for LESS than what you (the borrower) owed to the lender.

Whatever the shortfall was (difference in sales price and amount YOU owed) you should have a 1099 for. If your 1099 was for LESS than that, then YES the lender has the right to collect the remaining balance that was not FORGIVEN (hence the 1099 for GAINS)

read over the sale agreement where the lender agreed to sell the property for less than you owed, it should spell out what amount of the debt will be forgiven and what you agreed to PAY the bank back.

Hope this helps

I have 2 mortgages and was wondering what happens if one goes into default, can the mortgage in default cause foreclosure on both the 2nd and 1st mortgage?

the holder of the second mortgage can force a forclosure, but the first mortgage holder gets paid off first, so depending on the balance owed on the first mortgage, it might not be in the the best interests of the holder of the second mortgage to bother with the cost and hassle of forclosure, since a lot of forclosure sales end up not getting the lenders what they have in loans.

I had a property go to foreclosure in Colorado with 1st and 2nd mortgages. The 2nd is now trying to settle and has been calling and mailing me for the past 8 months. Can they collect? Should I settle or should I just pay an attorney to make them go away. They are out almost $80k and I didn’t file bankruptcy.

These are all the mortgage walkaway trustee sale states, meaning they are non-judicial foreclosure states.

In those states, generally, when they foreclose on you, they cannot pursue you for their financial losses.

Many, such as California, do in theory allow a lender to choose judicial foreclosure but in those cases the lenders only do so if a borrower has significant other assets. This is the "one action" rule that lets the lender either pursue non-judicial foreclosure, at lower cost and less time, or judicial foreclosure that costs more money and takes more time but lets them go after you for their financial losses.

Alaska
Arizona
Arkansas
California
Colorado
District of Columbia (Washington DC)
Georgia
Hawaii
Idaho
Mississippi
Missouri
Montana (as long as non-judicial foreclosure is used)
Nevada – note that the lender CAN get a deficiency judgment (See below)
New Hampshire
Oregon
Tennessee
Texas (but even in a non-judicial foreclosure, the lender can pursue a deficiency judgment)
Virginia
Washington
West Virginia

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From what I understand if a trustee sale already took place legally the 2nd lender cannot exercise it’s right to recourse. The only way they can have recourse action against you is if they had a judicial foreclosure that went through the court system.

The lender will try to bully you and make you think that they can come after you to squeeze what ever money out of you they can. The only way they can come after your assets is if they have a court hearing and obtain a judgement against you. Even if this were to happen you could claim bankruptcy and have it cleared.

There is a lot of information available about this on the internet. I recommend you do as much research as you can before contacting an attorney. Attorney’s are very expensive and may not be necessary in your case.

The first step you should take is finding out if your property went through a judicial or non- judicial foreclosure. If it was non – judicial the 2nd lender has no legal grounds to come after you and they are just trying to scare you into giving them money.

Good Luck!

my mortgage company filed for foreclosure papers, what steps can i take to keep my house instead of the mortgage company taking my house!

There are several things you can do: 1st thing is do not panic! Please keep in contact with them, ask them can you put your defaulted payments on the backend. Also, you can file for bankruptcy but that is not the wisest decision. You still have options…. but I would need more information. If you would like… you may e-mail me @ man07anonymous@yahoo.com

My FHA mortgage is in the process of foreclosure. Can they garnish my paycheck or take my state or federal tax return for the foreclosure debt? Does the mortgage insurance I paid help at all, since it was an FHA loan. Please help!!

did you look up your states laws on recourse? If they have it yes they can not only send you a 1099 on any shorts after it is sold but the lender can sue and get a judgment and then attach a garnishment to wages