Do I need to sign any new loan paperwork if I short sold my house and the bank is not forgiving the balance?

I recently short sold my house and the bank is not forgiving the balance, I have to repay it. They keep telling me that I do not have to sign anything, even though my loan is no longer secured by real estate and my payment amount has changed.

Asked on July 2, 2012 under Real Estate Law, Virginia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You certainly have valid points and I would indeed go and speak with ana ttorney in your area on the matter.  You should execute a new note for the correct amount and the terms but the bank may not agree to do so, as their rights as to their next step (suing for the deficiency) are contained in the first agreement.  Good luck.


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