Everything posted by Ratrace
Thank you for the response and I will definitely be contacting a consumer attorney to find out about options! I have searched back through emails and at no time was it ever indicated that the shortfall amount from the home sale would be reported as "charged off/bad debt". I also made a list of other information I found by searching through my husband's emails with the bank. We never received a copy of the contract stating what the payment was or the due date. My husband has repeatedly asked for two years for a statement or notice and we have yet to receive anything of the sort. My husband stopped into the bank to put some money into the account we have designated for the monthly payment and was told that no payments had been made in months, WHEN IN FACT, we had not missed a payment but the bank had been putting the money into an escrow account. We did request a copy of the loan agreement we signed and it appears to be a new loan without any attachment to the short sale of our house. We to this day have yet to receive a statement/notice/anything telling us the payment, due date, balance, etc.
We did sign loan papers for the remaining balance. We have not missed a payment on the loan for the shortfall after the sale of the house. We have never gotten statements or notices for the loan. We just send them the amount that we were told when we in and signed the loan papers. They are reporting the loan as a "bad debt/charge off". We owed $475,000 on our house which we were only able to sell for $425,000. The local bank which held the mortgage in-house refused a short sale (they told our attorney bc we were self-employed, they felt we had the money and we "holding back on them" 🙄 So they told us we must pay the difference over the course of the next ten years. We were told it would be a loan, we signed papers and have sent monthly payments for the last two years. Now a month ago, the bank starts reporting it as a charge-off/bad debt and when we questioned it, that said they are reporting it correctly? We are so confuse and have a call in to our attorney. If they are reporting it as a charge-off, wouldn't that mean they are receiving no payments? And if so, wouldn't we be better off to bankrupt this loan and be done with them?
In 2014, we found a buyer for our home but the bank refused a short sale and insisted we sign for a loan for the remainder. We did not receive copies of loan papers nor do we ever receive a statement from the bank and yet we have never missed a monthly payment. Now we find out they are reporting to the credit agency that this account is a "charge-off". Am I missing something? We had discussed bankruptcy but wanted to try and avoid it if at all possible- if they are going to report it as a charge-off, we are ready to stop making payments and bankrupt this loan. Any thoughts or advice would be greatly appreciated!