They dismissed the foreclosure! Now what?!?

[Beau coop]

oh my, what a mess! I hope your lawyer can help straighten things out.Best of luck!

 

[Cetawin]

Quote:
Okay..here is a major problem from my standpoint.

1. The two highlighted statement contradict each other.

You cannot dismiss a completed foreclosure. Why do I say completed. The house was sold back to the bank, meaning they went to a foreclosure sale, got the house for their judgment amount (which is required in order to hold the sale) and then owned the house. You were given 5 days to get out. I am sure had you not done so, the local sheriff, constable or whatever agency would have posted a 24 hour notice on the door and the following day physically removed you and your belongings from the house. Once that time limit has expired..usually 10 days after the sale but your state could be 5 days, the bank receives title to the property. hence the lock changing. At that point, the house is no longer yours, the bank owns the house and can re-sell it and you and/or your husband would have a judgment against you for the remainder of the mortgage, court costs, title search and the attorney;s fees for the bank's lawyer.

2. If they are "dismissing" it at this point...it is one totally messed up proceeding and personally the bank's lawyer should be facing bar issues for incompetency, not to mention ethical violations. That avenue would also be one to discuss with the lawyer you see over this mess.

3. What should happen but probably will not...they should return the house to you, re-finance it for the balance of the mortgage as of the day they claim your defaulted, remove an negative reportings against either of your credit reports, pay the entire term of your rental agreement, pay for the moving expenses out of your house and back into it.

4. What will probably happen...they will eat their losses, keep the house, reverse the judgment and not pay you jack. Resulting in the bank having the house, you not having a judgment against you and you getting zip monetarily unless you sue.

I can honestly say....oh I wish I was not retired because I would love to chew that bank's lawyer up and spit him out before breakfast.

Good luck with this mess...make sure your attorney addresses and discusses with you...

reportings against credit
any judgment resulting from their action
moving expenses
the rental contract monies
possession of the house
Formal complaint against the bank's attorney for malpractice
and seriously discuss libel, I do not know what your state laws are but in many, you could have the bank's backside for libel.

PLEASE NOTE I am not giving you legal advice, I am not licensed to practice law or represent you in this matter and jurisdiction. I am giving you opinions and suggestions on what to discuss with your lawyer having been through similiar situations myself.

I am in the process of editing this to add the following:

Normal forclosure proceedings travel this path...you can read it and see where yours we astray. I am using the word you representing you, your husband, the persons responsible for paying the mortgage etc etc., They means the bank and their representatives


Start

You default under the mortgage terms...ie fail to make payment as agreed to in the mortgage...verbal side agreements mean nothing in most juridictions

They file a foreclosure lawsuit and have you served

You respond to the lawsuit with your answer/response

Both sides enter the phase of discovery, document presentation, hearings, depositions and etc occur

Judgment is entered for them or You

Notice of Foreclosure sale is prepared, posted and noticed

Foreclosure sale occurs

They or the winner of the bidding at the foreclosure sale gets temporary title to the property and must notice you to vacate the premises

Once the statutory time limit of the notice expires, locksmiths are sent to change locks or if you have not vacated, a 24-hour notice is posted by the local authority...24 hours later you and all of your belongings are removed and set on the curb, literally

They have the judgment, it is recorded and title is transferred

They have possession of the house, title to the house and you still owe the mortgage payoff plus fees and costs

Anytime during this process, several reportings are make by the bank against your credit...

Case Over.... from start to case over can easily take a few months to a year or more.

now what is even worse...they have a recorded judgment on the public records...that is collectible. It is reported against your credit and that judgment can stop you from obtaining financing for many many years on another house or even a new washer and dryer...they can cease assets and sell them to pay towards the judgment amount. They rarely do but it is a collectible judgment so bear that in mind.


So, where did they mess up? Take a gander at the order of things and so forth. You know your situation better than can be explained to us.


Good luck to both of you.

 

[CityChicker]

Are you saying that you did a deed in lieu of foreclosure? If so, that would explain the foreclosure being dismissed. I don't know what else you could mean by selling the house back to the bank.

There is no way any of us can tell you what to do, especially knowing so little about your situation. Also, foreclosure laws vary depending on where you are. For example, here (Colorado) it used to take months upon months to get someone out of a house. Even then, the person could get back in the house after the foreclosure if certain conditions were met. New laws have made things much more difficult (again, here in CO) to get back in your house if foreclosed on.

It sounds like you definitely need to call a real estate attorney.

 

[quiltnchik]

Here's a brief rundown of what we've been through as far as the mortgage/foreclosure thus far:

https://www.backyardchickens.com/forum/viewtopic.php?pid=2228437#p2228437

The only other update, other than this dismissal, is that we received ANOTHER contract on June 24th (via FedEx overnight) that stated they wanted $900+ and the contract signed and returned by JUNE 20th! I guess they must think we have a time machine and can travel back in time from the date the contract was received! Also, they did return the original $1215 we sent them, with a letter saying that they could "not accept partial payments." Talk about a MESS!!

 

[Guinea Goonie]

The forecloser has run the legal course and the bank has "bid" on the property and is now the owner.

Here is the deal. Under most state laws, the note you held is foreclosed on, however you NOW have 12 months and a day to come up with the money for your note (in full and with 18 percent interest, not including the original notes percentage rate.)

This is why they are dismissing your foreclosure becuase LEGALLY they CAN NOT sell you home for the 12 month period as they are the original holders of the note and they now have possesion of the property as NO ONE else bid on the property for the monies they were owed.

They have a contract on the house and they want you to sign off on the contract. You REALLY should contact a lawyer and get this resolved. Do not be fooled by this dismissal. They are simply trying to avoid holding the property for 12 months. You may have an out here, but I doubt you are going to get any money from the bank.

The "new" owners have evicted you, the bank. Theya are simply trying to sell the property, without waiting the 12 months. It is up to you to take this situaltion to a lawyer which I would highly suggest.