You left out the part where they were first told they were 10k behind, so they wrote a check for 12.5k, only to be told by someone else they owed 25k. Collection agencies do the same thing - a shell game that never allows the party to pay the debt off due to it being a moving target.
They claim they were told they were $10k behind. Really? On an $880k mortgage that would be less than 3 months behind. I'll bet they were more like 6 months behind. Which would make the $25k figure more or less correct. These people are deadbeats. They serially file bankruptcy. First, one spouse, then after that bankruptcy case is disposed of, then the other files. In each case an automatic stay is in effect. Legal proceedings are halted. Intentionally done to delay the foreclosure. Which is exactly what the trial judge felt was going on. Seen it done many times in Florida.
Title will remain with the new owner and the bank will eat it. Theoretically, the old owner will have a claim, but the title will be with the new owner and the banks insurance will pay the claim. Keep in mind, they're not foreclosing if you're making your payments. Geez, they're hardly foreclosing in you're not. The average foreclosure has not made a payment in 18 months. Most of this is election year grand standing. Full disclosure, I'm a Realtor, which according to many on ET means I know nothing about real estate.
Wrong! See my earlier post. Further, if as you say title will remain with the new owner, then whom exactly is the "banks insurance" supposed to pay, and why? Also, what insurance would that be? Title insurance? If so, then only the new buyer would be entitled to make a claim. But, if as you say, title remains with them they have no claim. No, its far more likely the former homeowner regains title, at least temporarily, and the new homeowner makes a claim against the title insurance company. The title insurance company in turn, makes a claim against the bank.
Every state has statutes for fraud... These matters are much more complex as the statutes of limitation only begin to turn after the fraud is discovered... realistically an heir can make a claim 50 years from now and the court would issue a ruling.
Regardless of whether they were or were not actually behind - it is what they did after this that was wrong. They decided to stop making payments, which led to their foreclosure. Separately, this was one of many payments they were obligated to. It's not as if the 12.5K payment was to pay off the mortgage - which may give some credibility to stopping subsequent payments. They owed much more than 10, 12.5, or 25K.
Agreed. The key is that anything the banks do (be it fraudulent or otherwise) is irrelevant because the home owner is delinquent and should be foreclosed on. If the banks do not follow the correct foreclosure process they will be forced to answer for that - however the home owner will still be forced to vacate the home.
Guys, check this out: http://finance.yahoo.com/real-estat...ational-foreclosure-freeze?mod=realestate-buy "....GMAC, the country's fourth-largest mortgage lender, called this omission a technicality but was forced last month to halt foreclosures in the 23 states...." What do you think?
So you bought a foreclosed home. Now what? Is your home in jeopardy if you bought it in foreclosure? Check for title insurance first http://finance.yahoo.com/news/So-yo...8.html?x=0&sec=topStories&pos=7&asset=&ccode=