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What legal actions can be taken if a mortgage company files foreclosure 2 months after they have accepted payment in full based on a 'mistake' caused by payment dept not updating foreclosure dept?
Wiki User
∙ 16y ago
It would probably be best for the homeowners to hire an attorney to file any necessary paperwork with the courts. Every state and county and court has its own rules of evidence and rules of procedure, and not following these rules can mean the homeowners' paperwork is thrown out on some technicality, which would allow the bank to continue the unjust foreclosure.
But one legal action may be getting an injunction against the bank for any further foreclosure proceedings until a hearing is scheduled to determine the merits of the case. This prevents the bank from trying to collect further payments, send representatives to drive by the house, send appraisers to determine a value, or ask the sheriff to change the locks.
Also, filing a motion to dismiss the case for failure to prosecute would be another tactic that could be used. The homeowners should take the paperwork they have that shows the loan was paid in full, including the final payment (either canceled check or confirmation number for online payment), and speak with the judge in the case.
A final legal action is just to file an appropriate answer with the court to the lender's complaint laying out the reason for the foreclosure proceedings in the first place. The judge will have to take into account the fact that the homeowners are claiming the loan has been paid in full and have submitted evidence to prove that point.
But again, these actions should be taken only if the homeowners understand the rules of the court. If they do not understand the rules, then they may want to hire an experienced attorney to file the paperwork for them, or to show them how it should be filed. Attorneys can be hired as "coaches," in some cases, just giving advice on how to file motions and argue cases. That might be appropriate for some homeowners.
Wiki User
∙ 16y ago
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What is a good reason for refinancing mortgage?
Mortgage refinancing can become a good option when you are facing foreclosure. Of course you have to make sure that you consult your realtor or lender first before doing any actions in relation to your mortgage refinancing plans.
If your home is foreclosed on are you still liable for the mortgage?
To answer this we would need to know where the home is. States such as California only allow lenders one action, which is usually the foreclosure. After that they can not be persued. A second mortgage however, may persue if they did not do the foreclosure. Other states allow for deficiency balances to be persued through collection actions and the courts.
Can a tenant sue after the lease if they wont leave because the house is in foreclosure?
That tenant may be able to sue you if they can demonstrate that as a result of your actions (or in this case-inaction to pay the mortgage) they incurred financial damages. However, if this occurred after the termination of the lease, they may not have much of a claim, unless you failed to evict the tenant properly, and now they're being evicted due to the foreclosure.
Will chapter 7 bankruptcy stop a foreclosure in California?
Yes, temporarily. Filing for bankruptcy protects your from collection actions taken by your creditors, including foreclosure during the proceedings.
What is a relief from automatic stay?
Relief allows the creditor to continue collection actions/foreclosure/repossession.
Are you liable if your spouse has a foreclosure but your name is not on the loan or the final deed when it was signed back to the bank?
The liability in foreclosure comes from the responsibility for the mortgage debt. Regardless of your legal ownership or interest in the home, you do not have liability for the mortgage debt if you are not a party to the loan (did not sign). The home is the collateral for the loan and can be foreclosed and sold as recourse when the loan goes into default. While everyone who has an interest in the home loses their rights to the home when it is foreclosed, the liability for the loan and any negative actions associated with that (collections, lawsuits, negative credit reporting) belong solely to the signers on the loan.
What does it mean Foreclosure hold state?
Foreclosure Hold State signifies the ability to place a foreclosure action on hold. Meaning if there is a typical borrower forebearance review, litigation/contested action, the foreclosure is placed on hold to allow time for forebearance or contested action to be reviewed. Saves both borrower (if attempting to reinstate/payoff loan) and Servicer, with avoidance of fees/costs accumulating due to foreclosure actions.
Can you walk away from a condo mortgage without having mortgage company and association org garnishing your wages for pmts?
Not all mortgage companies seek a judgment after they foreclose (often called a deficiency action). They are less likely to do so if they believe you have no assets to go after, since it costs money to file the action and takes a long time to collect. Often, though, mortgage companies sell off the ability to seek a judgment to collection firms that specialize in deficiency actions, and the collection firm and the mortgage company split whatever is collected from the borrower. Your best bet would be to enter into a "Deed In Lieu of Foreclosure" with the mortgage company, and ask them to specifically guaranty that they will not seek to come after you for any additional money. In a deed in lieu of foreclosure, you deed the property back to the bank, and vacate the premises voluntarily. You may not have this as an option in all states, or if you have any junior mortgages or other judgments that are affecting title to the condo. If you are delinquent in your condo fees, it may also make your mortgage company reluctant to enter into a Deed In Lieu, since they would have to pay any back condo dues (this is as opposed to when a bank acquires the condo through foreclosure, where they are not always obligated to pay all delinquent condo dues).
Two Ways Mortgage Lawyers Reduce Hassles?
Mortgage lawyers are used in two main areas of real estate proceedings: preparing and completing mortgage papers and foreclosures. In both situations, the help of an attorney is essential. This article will explain how a mortgage attorney will be valuable in each instance. Mortgage laws differ from one state to the next. Those who move across state lines to purchase a new home should always contact a lawyer for help before signing a mortgage document. In some areas, the mortgage lawyer will usually work for a real estate law firm. Ask for a professional who specializes in mortgage documents. Depending on how complicated the transaction is, the attorney may only need to review the papers. In other cases, he or she may suggest a complete revision, addition of some wording or striking out wording. In mortgage agreements, the lender may try to add wording that they can legally get away with, but if the buyer requests otherwise, it can be stricken out. In some cases, there is also essential wording that will protect the buyer that is left out by the lender. This is why it is important to have a good mortgage lawyer review the documents. In a foreclosure situation, most home buyers are overwhelmed with the long process they're facing. The stress of trying to handle affairs with a foreclosure, added to the stress of other financial and personal burdens, can be made easier by hiring a mortgage lawyer. They are able to review the mortgage documents for any loopholes or clauses that can benefit the buyer. In the worst case where no such clauses exist, they are also beneficial during the foreclosure process. Some lenders try to bully buyers and may even resort to illegal actions if they think they can get away with them. Having a lawyer handle all correspondence is important. The mortgage attorney will also know how to proceed with any actions, based on what is said in the document. For example, in a state where the buyer has the right of redemption, the lawyer may be able to help the buyers buy back a property if they are able to obtain the funds quickly, even after the foreclosure process has begun. If the process is completed, the lawyer will be sure that the recourse or non-recourse proceedings are upheld by the lender, potentially saving the buyer from paying thousands of unnecessary dollars after the final sale.
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If a house is in a bankruptcy to prevent foreclosure can the lender modify the loan to be more affordable?
Only through the court. The creditors are not allowed to speak with you about these things as it is considered actions to collect a debt, which your filing of BK specifically prohibits them from doing...which is why their foreclosure is delayed.
What is nonconforming behavior?
Actions or activities that deviate from the accepted standards and mores of a society.
