Full relase of Liability

I have just been assigned the negotiator after 30 day submission of file to Chase. They hold 1st and 2nd lien. 2nd is a Heloc of $150k.  Will they give seller "Full release of liability" from Heloc vs foreclosure ? I am going to press for this or tell them to take property back in foreclosure if they do not. I have put in a call to CAR Legal dept. (California), and waiting for response. Apparently there is a new law effective 01/01/2011 on release of liability. Seller is in agreement on this.

 

Bryan.

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Permalink Reply by Bryant Tutas on February 25, 2011 at 2:44pm
Bryan. The new law is SB 931. It only applies to 1st mortgages. Your seller definitely needs to seek legal advice. Telling your seller to let the property be foreclosed on would be huge mistake. This will not solve their problem. Please have them speak to an attorney who is well versed on short sales and foreclosures in CA.
Permalink Reply by Kimberley Kelly on February 28, 2011 at 3:43am
Bryant is correct..HELOC's are not covered.  They are considered personal loans and the Seller must deal with them..hence the short sale where they can negotiate with the HELOC lender and get it taken care of..good luck.
Permalink Reply by Bryan Rockwell on March 1, 2011 at 3:47pm
Bryant, I can appreciate that. I never advise my clients to "let the property go into foreclosure".  We together discuss their best options, loan mod, short pay or them walking. If they walk it is always there discision and they sign disclosures regarding this so they know waha their options are. If after that they want me to list their property I alway 1st indicate to them to seek legal advice and CPA tax advise 1st. What I meant about telling lender to foreclose is I alway have to play "hard ball" with them to get them where we need to be to benifit the borrower, my client. So far, I have been successful. We'll see.

Bryant Tutas said:
Bryan. The new law is SB 931. It only applies to 1st mortgages. Your seller definitely needs to seek legal advice. Telling your seller to let the property be foreclosed on would be huge mistake. This will not solve their problem. Please have them speak to an attorney who is well versed on short sales and foreclosures in CA.
Permalink Reply by Bryant Tutas on March 2, 2011 at 1:41am
Bryan. Just be careful. Unless you are an attorney you should not be advising them on what's better for them. This is giving legal advice. Maybe filing BK is the best option. Of course we wouldn't know this because we are not BK attorneys. I know  we probably know these things due to our experience we just can't share everything we know with our customer/clients. Please check out the articles on this site related to the FTC and the new MARS Rule. There are several disclosures you may need to implement into your business if you haven't already.

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