I need really good upper management information.


I know its a collection agency.   We have a home listed that back in 2007 was worth about $150k.  Now, its worth maybe $30k!

The seller has 3 mortgages, the last being supposedly held now by CBCS.   They are not budging on what they want and I find it absurd what they are asking for.

The seller is a disabled vet that fought in the first gulf war.   He has literally lost his job, wife, kid and now probably his home.

This is my last ditch effort to try and resolve the issues:

CBCS wants $7k in cash and $200 p/mo note signed for 60 Months.

Seller went back with:  He has $5k he can borrow from family and since he does not work and still fighting (crazy) for his benefits from the VA, he is not comfortable with $200 a month but is willing to pay $100 p/mo.


They flatly refused.  I told them, in that case, the house will go to foreclosure, they will get ZERO.  I will have the seller contact bankruptcy attorney after foreclosure and wire the entire debt away......they are like......okay!  Ummmmmmmm  how stupid are these people!


Any contact information would be amazing.  I believe in my seller and since he put his life on the line so ALL of us can work and live in this country, he deserves special consideration.


Terri Barrow

Keller Williams - Palm Harbor Florida

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Why would they get ZERO if it goes to foreclosure?  I would not make that assumption.. Perhaps Ron Scribner can weigh on on what they could get if it forecloses

Did he purchase the home before his war related injuries or after?

Maybe the property has enough equity for the 3rd to pay off the 1st and 2nd and they'd be in 1st with an equity property?  Do you see where I'm going with this??

Deborah, if there was any equity everyone would paid in full, and this wouldn't be a "short sale".

I should expound.  If the property would sell for more than the short sale contracted price now that there is an appreciating market....it may pay for the 3rd to take over the 1st and 2nd and go for an appreciated resale price. Maybe short sale was negotiated and BPOed at a time when there wasn't equity and now it would resell at current appreciating price (hold for a while as (rental) market improves could be another strategy). 

Your seller needs to file BK now, before foreclosure. Have him consult with an attorney right away. Depending on your state laws foreclosure does not discharge all debts, only the first. You may be able to do a short sale after discharge.

CBCS, I think is the same collection agency I dealt with. So. California location. CBCS is not a bank. I was told they handle unpaid medical bills. In my case, my Seller had her baby at UCLA, 8 years ago and never paid her medical bills, so the hospital sent the bill to this lawyer based collection company. They recorded a lien on the property.


I tried and tried and the best I could do was to get CBCS to come down by 1/2 of the debt and the two real estate agents split the rest, which was $3,400. No matter what argument I made CBCS was not going to budge. I looked into it and they will let it go into full foreclosure.  If fact, the CBCS attorney I had to deal with said this to me.  "I tell all you real estate agents the same thing. It is all about the money, show me the money. If we don't get money --you get no money but if we get money--you'll get your money. It is that simple"  That is CBCS's position.

I cannot speak to credit card debt. This was a medical debt. They got a judgment and attach it to the Title.

An Abstract of judgment recorded August 7, 2006 as Instrument No. 2006-0046071, Official Records

of Santa Cruz County

Court: Superior Court in Orange County

Case No.: 06CL00668

Entry Date: 04/26/2006


To short sell the house, this judgment has to be paid or satisfied in some manner and removed off Title.

That is correct. They went to court and if the party did not appear there was a default judgement and it attaches to title. So try getting getting the home released for 10% and agree to leave the judgement in place against the party. That is what I did and it worked, but the seller was filing BK after the sale anyway.

I am on the Board of Directors of the Missouri/ Southern Ilinois Chapter of USA Cares. Have this seller contact USA Cares. They are based in Radcliff, KY He can contact them by going to http://www.usacares.org/ and making application on the web site. They responds to financial needs within 48 hours.

Also contact http://heroescare.org/  Go to the Services drop down menu and select Military Application for Assistance. They are based in St Louis, MO. 

I am located in the St Louis area, so let me know if I can be of further assistance.

Dean thank you for your information and I have forwarded it to my seller


Ask yourself this question: "Is the foreclosure really going to be any worse on the guy's credit than the short sale?" Probably not, to be one hundred percent honest.

Maybe you should think of this as your volunteer work instead of a real estate sale, and focus your efforts on getting him hooked up with community resources for disabled vets and into some affordable housing. Probably better that he move out into what he can afford, and walk away from this house without signing any future promissory note. The last thing he needs is another monthly obligation, right? Sometimes the answer isn't to keep pushing. Having said that, I've battled my way through shifty second mortgages or LOCs a few times and these collection agencies are rough to deal with. I felt like I was being beaten up daily by these guys.



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