QUESTION
Do I have any legal recourse after foreclosure?
Asked on Mar 02nd, 2012 on Foreclosures - Missouri
More details to this question:
I was 4 months behind on my mortgage payment. I contacted the lender and offered to pay half immediately and the two other in payments every month. They refused alleging that I needed to contact Loss & Mitigation Deptartment and make a re-payment agreement. I did. They said they'll send a package with forms for me to fill and send back. I never got it. I called again, they promised to send it. Never got it. Three weeks after my first contact they forclosured my property and the bank took it back.
4 ANSWERS
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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No. You were in default and the only thing they are required to do is notify you of that default. The foreclosure process itself has notice requirements but they do not have to offer you loss mitigation under your loan documents. Some banks that accept government money are required to offer these programs but they can pursue foreclosure at the same time as they are reviewing your modification package.
Answered on Mar 07th, 2012 at 12:39 PM
Commercial Bankruptcy Attorney serving Davie, FL
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Law Office of Jeffrey Solomon
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A bank is not obligated to accept partial payment. However, they would still have to go through an entire foreclosure process on real property, so when you say they took it back, I am unclear. However, there would be an expedited process for mobile homes.
Answered on Mar 06th, 2012 at 6:59 PM
The answer is "Maybe". What exactly do you mean when you say you did make a repayment agreement? Did you sign something? If so, then there's a good chance you have a legitimate claim. If not, it would depend on other circumstances, but would be a lot more difficult to argue. Be aware that there is a statute of limitations on such claims of 90 days from the foreclosure date. You should talk to a lawyer asap if this is something you wish to pursue.
Answered on Mar 06th, 2012 at 5:23 PM
If the foreclosing bank bought the property at the sale they may be willing to transfer the home back to you in response to your claim for wrongful repossession (breach of contract and promissory estoppel). If a third party bought the property then what could be proved as damages.
Answered on Mar 06th, 2012 at 5:04 PM