This year I made a short-sale with my primary residence. The second bank that offered me a home equity loan though agreed with the short sale but stated that even if they agree with short sale I still owing them the rest of debt and asked me to sign that paper but I never did. Well, my realtor told me that they can't do anything against since won't have the collateral, the property after short -sale - but now I am receiving letters from bank threatening with collections and other. I asked them to issue me a 1099 because I don't have that house anymore and everything I did with the loan was to improve a house that is not mine. My question now is: how creepy they could get after all and what I could do against them?
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