QUESTION
Can a bank promised to finance our house for 15 years but only financed it for 59 months?
Asked on Oct 11th, 2012 on Foreclosures - Florida
More details to this question:
My husband and I bought 2 acres and a mobile home in Florida in 2005. The lady at the bank promised to finance it for 15 years, but at closing it was only financed for 59 months with a balloon payment of $55,000. I told her since we were both on SS we wouldn't have that kind of money. She said as long as we made payments on time the bank would automatically refinance. That bank went bankrupt and another bank bought them out before we finished paying the 59 payments. We were never late with the payments. The bank wanted all the money at once, so we moved out. The judge in FL gave the bank a foreclosure on us for $66,000 and ordered the house sold. The bank bought it back for $38,000. It was appraised at $42,000. Now they want us to pay the difference plus attorney fees. How can they do that? It’s hard trying to live on what SS we get.
3 ANSWERS
Civil Litigation Attorney serving Federal Way, WA
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Stasch Law LLC
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It sounds like you had defenses to the foreclosure which you didn't raise. If you had, you might have been able to stop the foreclosure. If they are suing you for the difference, you could raise them as a defense to the debt. What the bank did to you is common and most people don't realize that they should defend the foreclosures.
Answered on Oct 13th, 2012 at 7:19 AM
Criminal Defense Attorney serving Deltona, FL
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R. Jason de Groot, P.A.
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This is a perfect example of why you needed an attorney for the closing, and why you needed an attorney for the foreclosure. All is done now and there is virtually nothing an attorney can do for you at this stage.
Answered on Oct 13th, 2012 at 7:18 AM
Insurance Litigation Attorney serving St. Petersburg, FL
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Gallagher & Associates Law Firm, P.A.
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The bank is fully within their rights to foreclose on the property and expect that you will satisfy the definciency judgment. The terms of the note and mortgage are enforceable unless you have some factual or legal defense. It also sounds as though you have a lawsuit against the bank for fraud in connection with the placement of the loan.
Answered on Oct 13th, 2012 at 7:17 AM