Legal Question in Real Estate Law in Virginia

After the Short Sale

I sold my house via a short sale last year. My lender now wants me to pay the difference or at least 50% of it to close the account. But the amount is six figures which I don't have. My lender is one of the banking institutions that received government bailout. Can they come after borrowers after agreeing to a short sale to pay the difference and having received a huge bailout from the government? I just got a letter from my lender requesting me to pay the difference within ten days or my account will be sent to a collections agency or their legal department. What are my options/rights as a consumer from this situation considering the short sale has been completed?


Asked on 7/21/09, 3:02 pm

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: After the Short Sale

It sounds like your short sale released the collateral but did not release you from the debt - in other words, like most short sales, it benefitted the brokers, the bank, the buyer - everyone but you. Not much consolation for you, but let this serve as a warning to others looking at these messages.

In any event, depending on the facts, you may or may not have some technical defenses to their claim. If not, you will either need to settle, pay it, or consider bankruptcy. You need to see a lawyer familiar with these issues right away.

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Answered on 7/21/09, 3:07 pm


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