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Question about a mortgage company foreclosing on property...?
About three years ago we bought a new home. We were assured by the real estate agent that our old home would sell right away. Three real estate agents and almost three years later the house is still not sold. We quit making payments in October of last year because we could no longer afford two house payments and were falling behind on our current home. We WANTED the bank to take it!! In March 08 they filed for foreclosure, in May they filed for a default judgment. Two days ago I received a letter in the mail from the courts saying the plaintiff dismissed the case WITH prejudice. I called the mortgage company and they gave me the run around saying they could not find my mortgage. Finally after holding ten times for a total of over an hour the woman said she found it. She became very nasty because the loan was so overdue. I asked her why the foreclosure was stopped first she said it was to save my credit....come on. Then she said that they were not going to sell my house for me and that the area's property values were rapidly declining and they would not get enough money for the amount I owe. She then told me that I had better do something fast (such as a short sale or make payments) because they are going to start garnishing wages. My questions are:
How can they garnish if they dismissed their own case with prejudice? Doesn't that mean they cannot sue again?
Why on earth would they dismiss with prejudice unless they had lost the original loan documents or something?
Can they really garnish without taking the house, or is the house collateral that they have to use to cover some or all of the debt?
Please help!! I plan on seeing an attorney Friday, but I cannot stop thinking about this mess.
Thank you for your response bull. We did rent the house from April '05 to Feb '06, they damaged the house so badly we spent five months remodeling. We swore we would never do that again lol.
I just spoke with an attorney over the phone and he said they can garnish and probably will. So l guess we will try a shortsale and if that does not work he wants to do a chapter 7 bankrupty. Ugh if anyone reading this is planning on buying a new home....SELL YOUR CURRENT HOME FIRST!!!!!! Do not trust a real estate agent who says they will sell the property fast!!! That is just real estate lingo for, "I would rather have a sure buy than an iffy sale".
3 Answers
- ?Lv 71 decade agoFavorite Answer
Whether or not they foreclosed on you, they can still take you to court for the money you owe. They probably can't take you to court for a mortgage shortfall, since they haven't sold the place to find out what the shortfall will be, but they can cedrtainly take you to court for the mortgage payments you didn't make. Still, saying they will do it and actually doing it are two very different things. Personally I think the lady is just trying to scare you and since they have not done anything for years its likely they will not do this either. Note that eventually they will do something to get rid of you and at that time they may come after old monies you owe them but you'll just have to see how things work out.
So, they almost certainly can come after you at least for the missed mortgage payments but I think they are just trying to scare you and since they can't seem to sell your house they probably won't do this either.
PS - Since you still own the house and who knows when they may foreclose on it, why not rent it out. Really couldn't hurt you to rent it out and its a shame just to let the place sit there vacant for many years.
- ?Lv 45 years ago
it is going to come right down to the fairness in the domicile; Can a 2d foreclose, legally confident, the actual question will they? easily relies upon if there is fairness in the domicile the 1st lien holder is the senior lien holder they carry each and all of the enjoying cards, if the present fee of your place does not even hide the 1st word, the 2d can not throw good monies after undesirable and foreclose upon the domicile because of fact it’s a no win for the 2d, the domicile remains encumber by the 1st and such the 1st nonetheless holds each and all of the enjoying cards, So why could the 2d spend extra monies to judicially foreclose upon a house while they at the instant are not likely to make a dime? It’s not a prudent organisation determination; the 2d will the two wait to ascertain what occurs sooner or later or sell of the debt to a set employer for pennies on the dollar
- Anonymous1 decade ago
I am not going to say I am one hundred percent sure about the answer.Besides it really depends on the personal feelings.SO it would better for you to find yourself.Here is a good resource.http://home-loan.online-frees.info/home-loan-free....
