Replies to This Discussion

Permalink Reply by Bryant Tutas on January 4, 2010 at 9:05am

Hi James. A "charge off" means the lender is writing this loan off on their taxes a a bad debt. Because of this you may be getting a 1099 from the lender where you will need to claim this loss as income. The lender may sill pursue a deficiency judgment at a later date. of course I am NOT an attorney or a CPA and this is just my opinion.

It is what it is. No need to stress over it. I too would not contact the bank. Let sleeping dogs lie.

I hope this helps.

If you want to seek legal advice contact Richard Zaretsky he is located in S Florida and specializes in short sales.

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Permalink Reply by Dominique Van Ryckeghem on January 5, 2010 at 10:10am

Hi Jim,

A charge off is an accounting step from the bank's point of view.

> I am wondering, does this mean they may have written it off and may not pursue us?

That's a question for an attorney. It depends on state laws, type of loan you had (purchase money vs refinance), etc.

Essentially in your short sale they released the lien to make the sale possible, but most likely you were not released from liability.
The language in your short sale approval letter should shed more light on that.

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Permalink Reply by James Parker on January 5, 2010 at 4:36pm

I did not receive an approval letter for the short sale, only a verbal ok. I submitted my hardship letter (large income decrease & near retirement age) and the bank representative who reviewed my situation said on the phone that it was obviously not affordable and they would probably accept a realistic offer. I had an attorney handle the rest once the offer came in.

I guess my question is, how long does it normally take to hear from the bank? I am assming they will call and attempt to negotiate a settlement with me (I will have an attorney handle this). Are other people waiting this long?

Thanks, Jim

Dominique Van Ryckeghem said:

Hi Jim,

A charge off is an accounting step from the bank's point of view.

> I am wondering, does this mean they may have written it off and may not pursue us?

That's a question for an attorney. It depends on state laws, type of loan you had (purchase money vs refinance), etc.

Essentially in your short sale they released the lien to make the sale possible, but most likely you were not released from liability.
The language in your short sale approval letter should shed more light on that.

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Permalink Reply by Dominique Van Ryckeghem on January 23, 2010 at 9:23am

Hi Jim,

Don't wait to hear back from the bank since worst case they may never call you. You or your attorney will have to do follow up to move this along.


Dominique

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Permalink Reply by James Parker on February 23, 2010 at 3:31am

Dominique,
Thanks for providing assistance on my questions.

Could you or anyone reading this post suggest an attorney in the Punta Gorda, Fl area who would have experience on negotiating a deficiency from a short sale?

Thanks, Jim

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