Settled on a mortgage anyone hear of this?
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live in tx. this has been a 6 month battle with my mortgage company, i even had to get the attorney generals office involved and they agreed with my complaint. They mortage company basicaly volunteered to refinance my 1st and 2nd loan at todays appriased value, including all closing fees ect. leaving it should to close 32k witch i was told by the company they would eat that extra. I have already closed this loan and they title company told me that they wired they diffrence to pay off those loans. Now i was talking to a friend he thinks he is a know it all, he is telling me that they will come after me and court and garnish my wages for the 32k. he works as a collector told i did a stupid thing letting them voluntering rather then me suing.
Settled on a mortgage anyone hear of this?I am not real clear on what you are asking because of the spelling/grammar, but I will give it a try.
"leaving it should to close 32k witch i was told by the company they would eat that extra"
If you meant: Leaving it $32K short to close which you were told...
Also, WHO paid off the 32K, the title company or the mortgage company?
Was this 32K to be eaten by the company paid off or the new mortgage company?
Normally, when there is a short sale (the original lender takes less than what is owed), they CAN 1099 you for the money you did not pay.
For example, you borrow $100K, make payments for a while, owe $99K, but the market drops and you can only sell / refinance and pay off $89K. The $10K difference that you were loaned and did not pay can be reported as income to the IRS. Not all lenders do it, but it CAN be reported, in which case you would owe the taxes on the 10K, but not the 10K.
If the new mortgage company was going to eat the 32K, that makes no sense, as why wouldn't they just hold a 2nd for 32K?
If the title company paid it out of their own funds on your behalf, it was probably a mistake (or perhaps you did something - like stop payment on a cashiers check) and they could sue you for it.
It does not make sense that 32K would be wired if the old mortgage company was accepting a short sale.
I think you need to clarify who did what and I can be of more help.
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