Legal Question in Real Estate Law in Oregon

foreclosure info

Recently had a home foreclosed on(11/06) in WA that was being rented out at the time. Could not sell it. Rcv'd a 1099-A ('06) stating that there was a $480K outstanding balance and the fmv was $585K. Total loans on the home = $600K, ($120K 2nd). Credit report shows the $480K was pd through FC but it seems the lender has charged off the 2nd lien amt, but still have collections calling. a.) how do I find out what the lender rcvd for the property and what was applied to my debt? b.) what does the remaining balance mean to me? c.) what portion of that balance do I have to claim as income? d.) is the final unpaid balance eligible for Ch7 BK?

thank you.


Asked on 2/07/08, 2:26 pm

1 Answer from Attorneys
Andrew Svitek Svitek Law Group, LLC

Re: foreclosure info

Ask for a verification of debt from the collection agency in writing.

On an investment property type of loan, the creditor may be pursuing a deficiency judgment. You can may want to enter into an agreement to repay the amount over time or to compromise the amount with a lump payment. Otherwise the creditor may be able to obtain a judgment, and attach a lien to a property.

See a bankruptcy attorney whether a bankruptcy would help the situation. Right now the creditor is probably unsecured until they get the judgment and lien against another property that you own.

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Answered on 2/16/08, 4:12 pm


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