Foreclosures Legal Questions

When your house is foreclosed, the first noteholder will always be paid first out of that foreclosure sale. You do not have to glory that the second lien holder will not pay the first lien holder, as the closing attorney must pay the first lien holder before transferring title. This happens on a regular basis and the banks will work it out, for the title to transfer correctly the first noteholder must be paid in full before the second noteholder received anything from the foreclosure sale. The problem that is going to arise or could possibly arise is the fact that if the foreclosure sale is not enough to cover your first and second mortgages then they may be a deficiency judgment against you which the bank could go after you directly or they could simply write it off as a loss. If they write it off as a loss, then the report this to the IRS and the IRS considers this amount to be income for the taxable year of the auction sale. Meaning if your mortgages for $200,000 and the foreclosure sale was for $150,000, then you have a deficiency of $50,000. This $50,000 can either be used by the bank for a lawsuit against you or most likely they will simply write it off as a loss, but this loss will be reported to the IRS and the IRS will be consider this loss as you received $50,000 in income for the calendar year all the foreclosure sale and they will tax you important link to that on a 1099 form. Filing a chapter 7 bankruptcy prior to the foreclosure sale being completed will deal with all the issues I have listed in this answer. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147  ... Read Answer

It all depends on which state you live in, as different states look at the same situation differently. In the state which I reside Massachusetts, we have laws to address this exact issue. In Massachusetts a lender cannot foreclose on a property unless they are the holder of both the mortgage and the note. Small lenders and credit unions usually never sell their mortgages, so this really is an issue with them. The larger bank such as your Bank of America, Chase, Wells Fargo, etc., usually take large numbers of loans between 1 to 10,000 loans and package them up into what is called a pooling trust. The vast majorities of these pooling trust, which are used by the banks to be able to trade their mortgages on the New England stock exchange, separate the note and mortgage. In Massachusetts we attack this in Superior Court in the county that the home is located in. If you would like more information all you need to do is Google "Ibanez foreclosure case", this will give you plenty of reading on the exact subject matter you're asking about. This is the main case that we use in Massachusetts to not only stop a foreclosure, but also prove the bank doesn't own the home, thus they can't even legally take your mortgage payments. If we take these cases all the way to trial and when then the home owner owns their home free and clear and will never have to pay the mortgage company ever again. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

You seem to be the perfect candidate for a chapter 7 bankruptcy. Do not sign a deed in lieu or allow the property to be foreclosed upon. Both of these have IRS tax ramifications, that treat deficiency between what you still owe on the mortgage and what the bank sold a house for, will be considered income for that taxable year. If you file chapter 7 bankruptcy, this. Any foreclosure proceedings and give you more time to be able to comfortably find a place you like and move without being rushed out or evicted by the bank. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

I believe you may be able to file a predatory lending complaints on the federal level. With the bank has done to you is your every date bait and switch scam. These scams are illegal and there is federal law that protects against them. My office usually has a client allow a free questionnaire to deal with these situations, which are good in any state in the United States of America. We have an outside agency draft up the complaints and file them and if further litigation is needed we would retain an attorney in your state to handle any court proceedings. I'm not sure if anyone in your state is doing this, as many only use the local state and federal courts, but these complaints are filed with agencies such as HUD (United States Department of Housing and Urban Development) and CFPB (Consumer Financial Protection Bureau).  I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://www.newenglandforeclosuredefenseattorneys.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

As long as you have a valid lease in place, the new owner who purchases the property that your businesses and will need to honor that lease even after purchasing the property are foreclosure sale a foreclosure sale only affects the ownership of the property in question, the property is still under the obligation to honor any leases that were written for the property in good faith. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

Yes you can declare chapter 7 bankruptcy or chapter 13 bankruptcy and include the debt of another person prior to that person receiving a judgment against you. Simply include the amount that they are attempting to sue you for, even if a lawsuit has been initiated and that debt will be discharge when you receive your discharge. Furthermore filing for bankruptcy prior to receiving a judgment, we you will take advantage of the automatic stay, which. All of the proceedings of the lawsuit. This means is that they will not be able to seek legal fees from you or any interest on the debt, once you receive a discharge the amount you are being sued for will no longer be a legal obligation for you to pay. If for some reason afterwards the attorney working on the lawsuit waits until after your bankruptcy has been discharged to attempt to collect legal fees from you based on this, you can simply reopen your bankruptcy include those additional attorney's fees as they are part of the previously discharged debt and you will not have to pay for those legal fees either. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

If your house is been foreclosed upon and sold at auction, and there is deficiency between the amount of the mortgage and the foreclosure auction sale price, this amount is called a deficiency. The bank may go after you to obtain this deficiency, but in most cases they just reported to the IRS as a forgiving debt. The IRS in turn records this forgiven debt as income for the calendar year in which the amount of the forgiven debt was realized. So basically if you had a $200,000 mortgage and your home sold at auction for $100,000, then you would have a $100,000 deficiency or forgiving debt, the IRS can then turn around and send you a 1099 with $100,000 of income for that calendar year. The best way to have kept this from happening would have been to file a chapter 7 bankruptcy and discharge the debt prior to foreclosure, that way you wouldn't be legally obligated to pay the debt and therefore not legally obligated for the deficiency. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

Without hiring a lawyer to review the record, no way to tell for sure. General answer is NO, as the litigation process does not allow "do overs" after a party loses a hearing. If you are looking at an appeal you REALLY need to consider hiring a lawyer to handle this for you as they are very complicated. We do offer FREE consultations to see how we can help. Just call 1-800-922-6442.... Read Answer

Sorry, but there is no defined timeline that can be given to answer your question. I have seen in some cases that bank of America is not foreclose on properties for years after a bankruptcy. I have one client that's actually been a foreclosure for eight years and Bank of America still has not foreclose on their property in retained possession of it. You may be able to address the issues you have raised in your question at your hearing, and the judge will decide on the matter. But there is no yes or no answer to that question, as there is a judge involved and he will take all the evidence provided by the bank and by yourself in deciding to grant or deny the motion. Although if you do believe that your bank deliberately shot down your mortgage modification, when you should of been able to obtain one, there are legal remedies that you may take advantage of. At our law firm we represent clients in filing HUD Complaints, CFPB Complaints and Predatory Lending Complaints on the Federal level. We have this service for all 50 states, as it is federal law and not governed by different state laws. We have had success with suing banks that have denied people mortgage modifications, when they did fit the criteria for such a modification. We perform this by employing a mortgage underwriter with over 30 years experience, that demonstrates our clients fit in the criteria needed to obtain a mortgage modification. And in many cases clients filing these types of federal complaint, if they are accepted by the particular federal agencies involved, can win damages in excess of the amount owed to the bank on their mortgage and are able to buy the house back from the bank with the damages (money) that the banks pay them, thus they own their home free and clear. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

No, the foreclosure process does not stop all over again once you receive a bankruptcy discharge or when the bank receives a relief from stay from the bankruptcy court. All notice requirements pertaining to your foreclosure sale and the serviceman's relief act must be redone, but whatever the foreclosure process is in your state, it does not start from the very beginning again simply because of bankruptcy. What ever point in the process of foreclosure was occurring at the time you file for bankruptcy, the bank can return to that time, with only redoing the previously mentioned notices. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

You cannot ask for relief from stay to stop something that has already happened. Depending on the litigation laws of foreclosure in your state, will determine if you have any recourse after the sale date. In Massachusetts you can actually fight for possession of your house after foreclosure sale, but this is not true in every state, you should contact an attorney in your state who handles foreclosure defense. A chapter 7 bankruptcy or chapter 13 bankruptcy automatic stay does not help a debtor after foreclosure sale. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

There are various reasons why your mortgage company keeps giving you a run around about getting you a deed in lieu. Simply stated the answer is they'll get more money from less work from foreclosing on your property then they will get from a deed in lieu. The deed in lieu pretty much write off your debt and places the home in the possession of the bank, which in turn the bank needs to go through a sale to sell it to recoup its losses. But if the bank chooses to use foreclosure, all of this is accomplished and one single foreclosure auction sale. At this point you may just want to file a chapter 7 bankruptcy so you do not have to pay any delinquency charges or be liable for paying any IRS income tax on the 1099 form they will send from the deficiency of the foreclosure sale. I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer

No way to tell without looking how that rule came to be and your HOA rules, etc.....bigger issue is whether it is important enough for you to spend several thousand dollars on a lawyer to challenge the issue with the HOA so you can say your piece? If not, you wil likely be in limbo with you saying yes, and them saying no, until somehting blows up..We do offer FREE consultations to see how we can help. Just call 1-800-922-6442.... Read Answer

You should consult an attorney right away or you may lose legal rights. You need an attorney to look at your deed of trust. It probably says that if the loan payments are delinquent for some particular length of time, the lender has the right to declare a default and proceed with foreclosure. It probably also says that once default is declared, the lender may refuse to accept payments. The lender is required to allow you to reinstate the loan, but he is entitled to demand costs, including attorney fees, incurred as a result of the foreclosure. If you are saying that your payments were never delinquent and the foreclosure is thus unlawful, an attorney may be able to file suit against the lender and get a temporary restraining order/preliminary injunction to stop the foreclosure process. This gives you the time and opportunity to prove that all your payments were in full and on time and therefore the default and foreclosure are illegal. However, this has to be done quickly, so you should arrange an appointment with an attorney as soon as possible. Your local county bar association may have a lawyer referral program that can set up an appointment with a real estate law specialist for a nominal fee.... Read Answer

The simple answer is yes, your commercial lease is still binding on you in regards to the person who purchases the building at foreclosure sale. They will not be able to evict you as long as you keep making on the lease. Just think of the lease as going from one owner to another, nothing changes for you.   I have responded to your inquiry according to the laws of Massachusetts, where my firm is located. Laws can vary significantly from state to state and cases tend to be rather fact-specific, so you are best served by consulting with a knowledgeable attorney in weighing your options. Email messages/Online Correspondence are akin to conversations and do not reflect the level of analysis applied to formal legal opinions. Email/Online responses do not form an attorney-client relationship.    Joseph F. Botelho, Esq. BOTELHO LAW GROUP Attorneys At Law http://fallriverbankruptcyattorney.com/ 901 Eastern Ave.  Unit 2 Fall River, MA 02723  Office:  888-269-0688 FAX:    877-475-8147... Read Answer