Can someone tell me what I can do, and who I could talk to, about this unusual foreclosure situation?
My brother and I both have our names on the deed to the house my brother lives in. But only his name is on the mortgage. He is the only one who lives in the house. He had a stroke a little over a year ago, and has not been able to work since. He was paying the mortgage payments, but cannot make the payments now. I cannot make the payments either because I have my own mortgage. Recently he was sent a notice of the foreclose and sale of the property. A real estate lawyer I spoke to said he believes I could give my brother permission to live in my "half" of the house without being evicted, because it would be difficult to foreclose on half a house since my name is on the deed also, but not on the mortgage! He thought possibly I wouldn't have to make the mortgage payments, but this sounds too good to be true. I mean, I assume SOMEBODY has to pay. My brother's SSI checks (he didn't qualify for regular benefits) are the maximum a single person can get: $674.00 a month, which doesn't go very far.
I hope someone can shed some light on this very unusual situation.
Landlord2010-08-21T08:47:56Z
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Man, you need another attorney. That one is wacko.
The mortgage is held by the house, then entire house. They get the deed, the entire deed, in the event of a foreclosure.
The house is going to the bank and he will have to move. You will no longer own half the house, the bank owns the entire thing.
The only thing that is unusual about this situation is that your lawyer would tell you something so bizarre and entirely untrue.
That attorney is a perfect example of what is wrong with our legal system. Bad advice!
It may be too late to suggest the following, but here it is anyway...
Had you or your brother considered contacting a local real estate agent who knows that neighborhood to determine if he's upside down? If so, consider selling short (aka Short Sale), which would give him a bit more time before having to move out. If this is a consideration, do it NOW and have a conference call between you/brother, agent and lender. If they've already begun foreclosure proceedings it's probably too late, but if there is that slightest possibility, you won't know unless you ask.
Loan modification is certainly a possibility, however, if there are considerable late fees and back payments due already, the modification may not be enough to make the difference needed. Again, neither of you will know until he's presented his hardship, run the numbers and ask all the right questions. Timing and communication is everything in these type of situations.
That lawyer has either been hit too many times in the head or needs remedial law school.
If your brother cannot make the mortgage payments, it does not matter if you are on the deed. The bank OWNS the house until you pay it off, not you, not your brother.
Nice creativity by the "lawyer" there, but it won't stop a foreclosure sale.
I am going to assume that you are not accurately relaying the advice of your attorney. I think he could have been trying to suggest that under the protections offered under the new law the buyer would have to honor an existing lease. That would work if your name was not on the deed. It sounds to me that you guys can qualify for a loan modification since there is a change in income and circumstance. Discuss this matter with your attorney to see if he can process the application. As well you may not be aware of it but since your name is on the deed the bank may name you as an defendant in the foreclosing proceeding. This matter can affect your name in the public databases in the future. You should discuss this matter with your attorney also. Try to focus on the modification to get a resolve. If you send me your state I can refer you to a local nonprofit that may offer additional advice. It is free. You can contact me at kwilliams@worldclassmemberservices.com