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What can the Lender require the Seller to pay on a short sale and what can be done if you have sign a cease letter.

High Point, NC |

We purchase a home approx 2 1/2 yrs ago for $183k since the Economy downwind we have been unable to pay the mortgage. We currently owe $206k from what the Lender is telling me. The Lender has allowed a REA to do a short sale on the property. The Lender ordered an appraisal on the property and it came in at $159k. The Lender asked the Agent what she had it on the market for and she said $159,900 and the Lender said that was fine. We first got an offer for $140k the Lender asked us for $16k to pay back. That Buyer couldnt get financing so that offer was declined. We got an offer of $154,500 paying $4500 in c/c. Now the Lender is asking us to pay $17k back to them in a Note of 10 yrs. Of course with every offer the Lender has to agree to the offer. They say the reason they are asking for this money is b/c they recently took a PMI out of the loan and the PMI company is asking for that money from us. We have never had PMI and closed our loan without PMI. Can the Lender do this and are we required to pay back this large of an amount since we did not authorize PMI. I could see if they where asking us to pay back the $4500 in c/c plus the difference between $154,500 and the $159k. They are the ones that told the REA to price the property at $159k. They can tell there has been a huge decline in the market value in less than 3 years. My home is in excellent condition. The REA will even say the home is beautiful and well kept. Also back in March 2007 I signed a cease Letter for them to stop calling me and they stopped until Dec 2008. I know they received the letter I have fax confirmation plus the calls stopped. Now they are calling again on the same loan and said to stop the calls I need to sign another one. Is there anything I can do in this situation? I know I could have let them foreclose and let them deal with it, but they agreed to a short sale and told the REA what to list the house at. With the $17k I am going to owe them this over a 10 yr period. I agreed to it but the more information I receive from the Lender and the REA makes me feel like they are trying to pull something over on me.

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Attorney answers 1


If you feel that the lender's calls are threatening or harassing, you may have recourse under the Federal Fair Debt Collection Practices Act or under your state's equivalent law.