Replies to This Discussion

Permalink Reply by Jim McCormack on April 25, 2013 at 8:27am

Is the WF credit card a judgment, or just a collections debt?

Permalink Reply by Doug Landers on April 25, 2013 at 10:26am

Thanks for the reply Jim...It is a judgment.

Permalink Reply by Jim McCormack on April 25, 2013 at 10:39am

Do you have an agreed settlement amount with a payment date that will allow time for closing?  If so, just send that to the 1st lien holder on the short sale.  You do not need a specific statement showing that the judgment can be settled out of escrow.

Permalink Reply by Doug Landers on April 25, 2013 at 10:43am

We have an agreed settlement amount.  Are you saying that the 1st could include the settlement in their Approval Letter and that would clear Ttile to close?  The issue lies in the existing lien from the credit card judgment clouding the Title.

Permalink Reply by Jim McCormack on April 25, 2013 at 11:04am

Just put the agreed settlement amount of the WF CC debt on the HUD1 as a junior lien and submit for short sale approval.  I have done it before.  Unless the 1st short sale lender has some sort of policy prohibiting the payment of personal debts (i.e. like an FHA short sale), there should not be any problem.  The settlement amount letter that you have is the "2nd lien approval" that the 1st will want.

Permalink Reply by Doug Landers on April 25, 2013 at 11:10am

It is on the HUD 1 as a junior lien and has been approved by the 1st.  The problem is that Title will not close the sale unless they have the credit card lien removed or some documentation that indicates the Lien will be removed upon payment of the settlement amount. WF credit card division will not give a release letter on the lien or even an intent to release once settlement is paid.  The credit card division will not accept payment from escrow.  It is a tough situation. 

 

Permalink Reply by Jim McCormack on April 25, 2013 at 11:36am

If you have a written agreement to satisfy the judgment then the judgment is done.  Unless the CC company liened the house directly it is just a judgment, which is a general lien.  You have a title company problem, not a short sale problem.  Is this your title company, or the other other agent's.

Permalink Reply by Doug Landers on April 25, 2013 at 11:40am

It is a two fold problem. 1).The CC will not put anything in writing. 2). My Title company - which I will go back to tomorrow and restart the conversation.

Thanks Jim

Permalink Reply by Jim McCormack on April 25, 2013 at 12:06pm

I am confused.  You said earlier that you have a settlement agreement with the CC company.  Are they refusing to put the balance owed in writing?  I am not aware of any law that allows a debtor to refuse producing a payoff statement for a debtor.

If there is no written settlement agreement with the WF CC then there is no settlement and I would never pay that debt myself.  How can you be sure it will be accepted as a full payoff without a statement in writing saying how much is owed?  I have never had a CC company refuse to produce a letter showing the balance owed to satisfy the debt and a date that the monies must be received.  I think you confused the CC company by introducing the SS into the equation.  Have the borrower call the debt collector for the WF CC, or WF directly if there is no debt collector and tell them to request a settlement agreement for the debt.  This is standard business practice.  Then give that to the title company.  That is all you should need.