2 mortgages $380k/$80k (same bank), short sale

mayday · Joined: 20 Jan 2010 Posts: 1

Hi,

We have 2 interest only mortgages with the same bank for the house on Staten Island, NY. Nice area, surrounded by expensive gated communities, near the water, parks, etc) Prices barely went down, originally bought it for $440k in the end of 2005.
1. $380k (PHH - servicing bank) in foreclosure proceedings since august 09
2. $80k (PHH - servicing bank + same investor as 1st loan)

A. At the moment our lawyer Alexander Kaplan, who represented us AND the bank, is convicted and facing 30 years in federal prison for mortgage fraud: google "alexander kaplan sentencing"

B. Today's appraised value of the house $390k-410k. Attempts to modify / refinance / consolidate the loans have resulted in nothing but late fees, missed payments (totaling owed amount at $460k if not more) and aggravation with the bank/their lawyers.

To minimize impact on my credit and future, I would like to avoid the foreclosure. We got a Short sale offer/commitment for $365k.

I would appreciate to hear from anyone on what to expect regarding my 2nd mortgage, If bank to agree on the Short sale...

How do I pursue/legally bind the bank to not go after me for remaining $80k?

Will there be a Deficiency judgement against me that would force deductions from my salaries?

Will I have to pay Taxes for 2nd mortgage?

Can they go after my co-op studio apartment in Brooklyn, on which I owe $50k out of $98k?

What legal mechanisms do I have at my disposal to pursue the bank not go after me?

it seems like nobody cant answer these questions with certainty, lawyers I speak to are siding on the chaos within the banks, how communication gets lost / how everything is automated / how no human element is present in any parts of process.. please help

thanks

MrPink1130 · Joined: 11 Feb 2010 Posts: 17

your asking question that should be answered by a lawyer......

but, you will likely receive a 1099-C from the bank for whatever the difference is. that will be seen as income and the feds will tax you on it.

and, if the bank finds out you have assets, they will come after those assets