Legal Question in Real Estate Law in Florida

We did a short sale about 2 1/2 years ago. My credit report shows the mortgage balance is zero. The bank continues to send me monthly invoices showing the amount foregiven plus accrued interest plus late fees each month. I have contacted the bank multiple times and asked them to stop sending the monthly bills since the loan balance is zero; however they continue to send the monthly bills. In addition, at the time of the short sale we had the bank sign an agreement stating the note has been satisfied. Also, the credit reports reflect the loan was satisfied for less than the amount owed. Can I just ignore the monthly bills since my credit report shows a zero balance for this loan? If the answer is no, then what should I do?

Thanks in advance for your assistance.


Asked on 8/13/10, 10:02 am

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Just because a bank agrees to a short sale doesn't necessarily mean that they don't expect you to pay the difference owed. This should have been spelled out in your closing documents, that you would not owe the difference. The loan balance may be zero, because there is no loan, but that doesn't necessarily mean that there isn't a debt owed to the lender. Did your Realtor or lawyer negotiate your deal to include no 1099 for the "amount forgiven"? Property owners may also get stuck with owing tax on the "windfall" of having thousands of dollars in debt forgiven by lenders. Don't ignore these bills, either get a straight answer from the bank (in writing) or hire a real estate attorney to sort it out.

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Answered on 8/18/10, 11:14 am


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