Foreclosures Legal Questions

Your name being on the deed is of no consequence, what is important is if you signed the note and mortgage. If you signed the note and mortgage, then after the foreclosure there will be two things that happen if there is a remaining balance, which in over 90% of house is foreclosed there is always a remaining balance, as many houses are underwater and banks sell homes at foreclosure sale lower than the value of the mortgage outstanding. If you are on the note and mortgage, and the bank does not receive enough money at the foreclosure sale to cover the mortgage, the bank may go after you for the difference between the outstanding mortgage and the sale price. If the bank does not come after you, the situation is even worse, they will send a 1099 to the IRS and the IRS will tax you on that 1099 as income. Basically if the mortgage was $200,000 and the home sold for $100,000, and there is a $100,000 deficiency. If the bank chooses to go after you they will go after you for $100,000. If the bank chooses not to go after you say will send a 1099 to the IRS and the amount of $100,000, the IRS sees this as you earned an extra $100,000 in income for that calendar year. The problem with this is taxes are not dischargeable in bankruptcy until many years have passed and owing that amount of money to the IRS, approximately $33,000 or more, will have serious repercussions on your life. I suggest you file a chapter 7 bankruptcy prior to the house being foreclosed upon and then just move back to your state. You do not have to wait until the bankruptcy discharge has been granted, you can move right after you file, but you will have to go back to your state to deal with the bankruptcy such as a 341 creditors meeting.   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

Depends on the facts, but generally no personal liability if you have a standard POA and were acting on her behalf alone. Since you are gettin sued though, best bet is to hire a lawyer to address the issue properly. If you would like, we do offer FREE consultations to assist in determing how we can help. Just call 1-800-922-6442.... Read Answer

Problem here is spending dollars to chase dimes. It may not be right, but financially, itis probably wiser to chalk it up as a loss and move on. Its not fair, but its the most practical answer. If you would like, we do offer FREE consultations to assist in determing how we can help. Just call 1-800-922-6442.... Read Answer

Sorry to be the bearer of bad news, but your credit is already ruined once you get to this point and cannot pay for the mortgage. To answer your question, YES, they can come after you for the missed payments and the deficency from the foreclosure sale. What this means is when your home is sold at foreclosure sale, whatever the sale price doesn't cover, they can come after you for that amount. Basically your mortgage is worth say $200,000.00, and sold at foreclsoure auction for $100,000.00, then you will owe the bank $100,000.00 and have no home, just the debt.  If the bank can't collect the debt from you, which they most likely will not even try, in that case they write it off to the IRS to take it off their taxes and then the IRS sends you a 1099 for that amount. Basically the 1099 will go towards that years taxes as if you earned an extra $100,000.00 in that tax year, which will have you owe approximately $34,000.00 to the IRS which cannot be discharged right away in bankruptcy. The way you could prevent this is to file Chapter 7 Bankruptcy BEFORE the house is sold at a foreclosure sale and discharge the debt, so when they do sell the home, you will not owe the debt and therefore not responsible for the defecency or the 1099 taxes ramifications.   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

Probably not, but there are too many variables that would need to be addressed before a direct answer can be determined.  Namely, I’d be interested in taking a look at the reverse mortgage paperwork and the civil summons.  Generally, the only “liability” you would be dealing with is the loss of the home per the reverse mortgage.  To be sure, I’d advise getting a consultation with a local real estate or foreclosure defense attorney where you can have all of the documents looked at and discuss the details.... Read Answer

If you were in the state of Massachusetts, they would be plenty that you could do with your foreclosure case, but what most people do not understand while they're doing their Google searches on these subjects is every state has different laws pertaining to these situations. When you find out about the subject matter you are discussing, you are for the most part discussing Massachusetts cases and those of a few other states, but this does not apply to each and every state. The federal laws on the subject are not as helpful as those of certain state, the problem is some states have almost no protection for homeowners even when these situations arise. The fact that certain problems are made by the banks and their processing of the mortgage doesn't automatically and every state violate a particular statue or case law. The best answer would be to get the help of a qualified and experienced attorney to handle this matter for you. These are not simple cases and generally require expert witnesses, expert testimony, a forensic legal analysis of the mortgage and other things are not within the scope of this question. This is really one of those things that you really can't do yourself.   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

The answer is yes, if you are filed a chapter 7 bankruptcy in which to save your home you can still do that if you have not yet received a bankruptcy discharge. If you are still in chapter 7 bankruptcy, and have included your home mortgage, and now wish to save your home you do have an option, convert to a chapter 13 bankruptcy. In chapter 13 bankruptcy, you are allowed to repay your delinquent payments while still making your normal monthly payment. Thus in a chapter 13 bankruptcy you can save your home from foreclosure. But if you've received a discharge from chapter 7 bankruptcy, you cannot convert it into a chapter 13 bankruptcy, unless you reopen the case and the bankruptcy court allows you at that point to convert to a chapter 13 bankruptcy.   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

Once the home is foreclosed upon, and the bank sells the property at auction for less than the amount remaining on the mortgage, then that bank has two options to go after the person for the delinquency or to write it off and inform the IRS of the delinquency. If the bank attempts to go directly after your mother they must follow the laws of your state in collecting that debt. Basically if they take her to court and she has any other properties such as a second home or something that a lien can be attached to such as a piece of property, they may go after her assets in that way. They can go after cars, jewelry or other assets of that nature, such as a bankruptcy trustee would be able to go after. But if they do receive a judgment in court, what ever your state allows them to garnish wages or any other form of income that is a possibility. The most likely result will be that they write off the delinquency and send you a 1099 IRS form. What this means is if the house had a mortgage of $200,000 on it and the property sold at foreclosure sale for $100,000, they would be a delinquency of $100,000. They informed this to the IRS and send you a 1099 form, for your taxes. What this means is you will be forced to pay by the IRS income taxes equal to the amount you would have paid if you had actually made $100,000 in that tax year. This is why it is critical if you're going to be foreclosed upon that you file bankruptcy and have the mortgage discharged prior to a 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

The simple answer to your question is yes, a homeowners association may foreclose on your home for nonpayment. The complete answer to your question is, a homeowners association must file a lawsuit against you, when the lawsuit and receive a judgment, and get a lean against your property for that judgment and finally can attempt to foreclose on your property. Depending on your Homestead laws in your state will determine if they are able to successfully foreclose on your property. Here in Massachusetts, the Homestead exemption is so high, that it would be nearly impossible for any homeowners association to have enough fees in order to reach the amount needed to be able to foreclose someone in this state, but all states are different. In California, the delinquent assessments must equal or exceed $1,800 or the delinquency must be at least 12 months old before the HOA can initiate foreclosure proceedings (Cal. Civ. Code §1367.4). To learn about the laws governing HOA foreclosures in your state, review your state’s statutes.   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

The answer will always depend on if you have a lease with the landlord or if you are a tenant at will. If you have a lease and the home is foreclosed upon, the new owner will still have to abide by the lease, especially if you took the time to record the lease in the registry of deeds or what ever registering office your particular state employs for deeds, mortgages and other documents pertaining to the title of land. If you have a month-to-month tenancy at will, then the new owners may proceed with an eviction once they are on title, as it is their right. You never have the case to file a lawsuit against a property owner who was being foreclosed upon for moving expenses or "annoyance", as your tenancy rights are not directly affected by who owns the property at one time, but instead it depends on the tenancy you have and if you have a lease or not.   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

You should never stop paying your first mortgage in order to pay your second, your first mortgage is always your highest priority. Most likely your second mortgage will not move to foreclose, as the first mortgage would need to be paid off in the foreclosure sale and usually a house that has less value than the first mortgage, most houses in the United States are in the situation, because there will not be enough money in the foreclosure sale to satisfy the first mortgage and the second. Although if there's enough equity in your house, the second mortgage company does have the right to foreclose on your home to collect the debt. In this situation the use of a chapter 7 or chapter 13 bankruptcy is advisable. In either form of bankruptcy you may file a motion to remove the lien, if the first mortgage is approximately the value of what the home is worth now and the second mortgage interferes with your Homestead rights. If the motion is allowed, the second mortgage may be stripped and you will not have to pay it back.   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

The simple answer to your question is, yes, you do have to pay off the difference between the auction sale price of your home and the balance required to pay off the mortgage on the property. Basically if your house is foreclosed and you do not file bankruptcy before the foreclosure sale has taken place, you will be liable for the difference between the two. The problem arises as most banks no longer attempt to collect this debt from the debtor, they simply write it off as a loss and reported to the IRS which in turn will send you a 1099 form claiming that you receive income in the amount of the difference between the payoff figure of the entire mortgage and what the home sold for at foreclosure. To make math easy let's say you have a mortgage for $200,000, the house is foreclosed and is sold at foreclosure for $100,000; at that point the bank will report to the IRS that you had an income that year of $100,000 and you will have to pay income taxes on the $100,000. But if you file bankruptcy prior to the house being sold, the entire debt is discharged and you do not have to pay income taxes on the difference between the mortgage and the sale price. In this situation it is critical that you file bankruptcy and get a discharge prior to the house being foreclosed upon.   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 goes to auction.  They can't just sell it, and here’s why – the association isn’t the owner just by virtue of a foreclosure judgment.  When they foreclose on the property, the judge orders a sale.  Ownership doesn’t just transfer to them.  The Court holds a sale and the highest bidder buys it at least for the judgment amount (lien, plus attorney’s fees and costs usually).  Now, many times, there’s no bidder so the condo or homeowner’s association buys it so they can sell it.  So, long short – if you want to purchase a foreclosed condo, start with the auction.  Keep in mind, though, that even if you get it for a “steal” like five or ten thousand, it may still have liens like a bank loan on there and they can still foreclose – it’s a messy situation that’s become more frequent with the crisis in FL.  ... Read Answer

Unfortunately, THEY aren't forcing the foreclosure, YOU are. If there are payments you owe, they are not required to negotiate with you or make a deal. BEST way to resolve the issue is pay the money and fight about the other issues later. If they sell the house for more money, thee xtra would go to you or lein holders but problem is they have no incentive to maximize sale or hold out out for best price. If you are looking to address this issue, you should hire a lawyer to help you.... Read Answer