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Neal D. Gidvani

Neal Gidvani’s Answers

3 total

  • I did a short sale on my house in February 2009. How long is the statute of limitations for action to be taken against me?

    My first mortgage was with Countrywide and the second was with Wells Fargo. Thank you.

    Neal’s Answer

    In February of 2009 (Nevada deficiency statutes have since been amended) the statute of limitations regarding a breach of contract suit for a deficiency was 6 years. However, most savvy real estate agents handling the sale of the property receive a waiver of this deficiency amount in writing from the lender upon closing on your behalf. If you are unsure whether you received a waiver, I would speak with your real estate agent or a licensed attorney in Nevada. Additionally, in most circumstances, a lender that provides a waiver of deficiency will also issue you a 1099-c (Cancellation of Debt Tax Form). If you did not receive a 1099-c from your lender, chances are that you did not receive a waiver.

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  • Can a second mortgage foreclose on your home without the permission of the first mortgage?

    By the way, there's $0 equity in my home and I filed bankruptcy in 2011 which erased the second mortgage debt, but not the collateral.

    Neal’s Answer

    A second mortgage holder may attempt to foreclose on a property. However, any action or recovery in which the second lien holder takes the property is subject to the first mortgage. As a result, the second lien holder rarely proceeds with a foreclosure action unless the first mortgage is current and/or their is sufficient equity in the property thereby allowing the second lien holder some recoverable assets in the event of a foreclosure sale.

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  • I'm going through a divorce and tried to put the loan in my name only.The bank advised me I have to sell it,

    should i let it go into foreclosure to get the money together to move? I have three kids so I will need a place to go so I will not be making the house payment so I can get the funds together to move. How long will the process take until I have to...

    Neal’s Answer

    Regardless of your current marital status, the bank will require both you and your ex-husband to remain on the note unless you are able to re-finance the property by yourself (a loan modification will not remove his name). A quit claim deed and an agreement in the divorce decree with transfer the Deed of Trust to your name only, but both parties will remain responsible for the amount due to the lender. Once this amount is paid off, you can retain sole title to the property. Also, if you let the property go into foreclosure it will negatively impact both your credit and that of your ex-husband.

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