Legal Question in Credit and Debt Law in California

Do I owe the balance for a former 2nd TD after the sale of the property?

Home was about to be foreclosed. Found a buyer and sold it thus paying off the 1st TD in full. 2nd TD lender agreed to release lein although approximately $30K was still owed. House sold, title conveyed, all was recorded in county offices.

I stopped making payments (due to financial problems) on 2nd TD and heard nothing more from the lender until a notice was sent stating that the loan was sold to another lender. I have made approximately $17K in payments to that lender and now realize that 2nd TD may have been a ''short-sale'' and that I was not obligated further after the property sold.

Correct?


Asked on 4/03/02, 1:55 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Do I owe the balance for a former 2nd TD after the sale of the property?

I would need to look at all the paperwork concerning the sale of the property to determine if it was a true short sale. Usually, unless there is some agreement that you signed to the contrary, it could be considered that there was a short sale.

Why did you continue to make payments on the 2nd after the sale?

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Answered on 4/03/02, 3:52 pm


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