Thanks for all the great information! The collection agency I am working with has been quite cordial. They received 12k of a 70k loan during the short sale, and I have a feeling they will settle the loan for another small lump sum. They know that I'm getting things in place for bankruptcy and...
Thanks for the reply! CA is a non-recourse state, but I refinanced the original loan in order to get a better interest rate. That allows them the opportunity to take action. I am glad that the debt will be forgiven, and our short sale did go through! I am doing what I can to negotiate and...
Thank you, I have reached out to someone and look forward to hearing more. I don't want to save the home and am most concerned about keeping my car and other very minimal assets without paying any additional to the 2nd mortgage.
In the case of a short sale when the full debt amount is not forgiven by the 2nd mortgage, what are the bankruptcy options? The 2nd mortgage was refinanced for the interest rate only, but it still gives the bank recourse. They would be earning $15k of a $70k debt in the sale, but more than...