Legal Question in Real Estate Law in Oregon
I sold my home doing a short sale. I was concerned about the deficency being assesed to me via a 1099 at the end of the year. My realtor told me that for 6K the second lien holder would release the lien, but would not put in writing that they would not 1099 me. I was told by the realtor he had never seen a lender "go after" a seller in this fashion. Further he told me that if they did not 1099 me by the end of the year they would have to write it off their books. So I proceeded in the transaction. I just pulled my credit report 11 months after the home closed and the loan is showing as open and past due. I asked my realtor what was going on and that I thought this should be "settled" for the 6K and be closed. He agreed. The lender is telling me this is not what he negociated and the debt will remain until it is paid in full. He lied to me and now I am stuck with this on my bureau. Had I let the house go to foreclosure I would not have a dime in debt. Clearly the choice I would have made at the time had I been counseled properly. Do I have a cause of action for misrepresentation or malpractice?
1 Answer from Attorneys
Do you have a written agreement, signed by the lender, stating that the $6,000 settlement eliminated the debt? Do you have letters or emails from the lender so stating? If not, then you should consider how you are going to prove that such an agreement existed.
Same questions exist re the realtor. Do you have a written agreement or correspondence with the realtor stating that the deal he was getting for you was release of the debt in exchange for $6,000?
You can, of course, sue the realtor or the lender and claim breach of contract. But you will then have to prove that the $6,000 deal had been agreed to. You can also file a complaint against the realtor with the Oregon Real Estate Agency. See http://www.oregon.gov/REA/complaint.shtml