Posted on: 22nd Mar, 2012 03:19 pm
hello, i don't know all of the intricate details of this transaction, but the situation appears to be fradulent.
my sister-in-law took out a mortgage for approximately $100,000 that was insured by the fha. after many years of trying to avoid foreclosure, she eventually lost her home. the lender that repossessed her home turned around and sold it for $10. i do not know what the outstanding balance of the mortgage was, but according to the fha she is responsible for the difference. i know this amount is in the neighborhood of $50,000- $80,000. her tax refunds will now be garnished indefinitely for a home that she no longer owns. she was in chapter 6 (i think) earlier, but one of the provisions was that she kept her home. she has not re-declared bankruptcy. the 1099 that she received was for $10.
this home was in great shape in the greater dfw area. after some research, the bank sold numerous (>50) homes to the same person that bought hers for $10 also. is this legal? her current situation has her paying almost full price for her former home because the bank sold it for $10.
any insight into this situation is appreciated.
my sister-in-law took out a mortgage for approximately $100,000 that was insured by the fha. after many years of trying to avoid foreclosure, she eventually lost her home. the lender that repossessed her home turned around and sold it for $10. i do not know what the outstanding balance of the mortgage was, but according to the fha she is responsible for the difference. i know this amount is in the neighborhood of $50,000- $80,000. her tax refunds will now be garnished indefinitely for a home that she no longer owns. she was in chapter 6 (i think) earlier, but one of the provisions was that she kept her home. she has not re-declared bankruptcy. the 1099 that she received was for $10.
this home was in great shape in the greater dfw area. after some research, the bank sold numerous (>50) homes to the same person that bought hers for $10 also. is this legal? her current situation has her paying almost full price for her former home because the bank sold it for $10.
any insight into this situation is appreciated.
The bank would sell the home to the highest bidder, but the trustee or person holding the sale, would set the price at a certain amount. Sounds fishy to me, I would have an attorney look into it. They can pull the proper records to see how the transaction went down. FHA only guarantees the lender in default, not the borrower. Did she get a 1099 for the whole amount that was owed, or just the $10? Also, did she receive a Judgment Entered? If no judgement, then its not the lender who is saying monies are owed. Its the IRS. If so, there are exemptions with the IRS for mortgage forgiveness. Talk to an Atty to find out for sure what your rights are. good luck!
Well, if the lender can foreclose on the deed of trust if you don't pay your mortgage. The bank or note holder goes through an extensive process to sell the property at public auction to the highest bidder. Some foreclosures require court action, others do not.
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Hi Guest,
I agree with the opinion of Chris. There is something fishy in the whole matter and you can contact a real estate attorney and take his opinion in this matter. The real estate attorney will go through the whole thing and will let you know whether or not your sister-in-law will be able to take any legal steps in this matter.
I agree with the opinion of Chris. There is something fishy in the whole matter and you can contact a real estate attorney and take his opinion in this matter. The real estate attorney will go through the whole thing and will let you know whether or not your sister-in-law will be able to take any legal steps in this matter.
Thanks for the comments. Chris, I don't the answers of your questions, as I don't think she knows. I will try to convince her to get an attorney or retain one for her if necessary. The situation hasn't exactly "been taken by the horns", as its not in her personality. I would hope that there are legal safeguards in place against this liability. A fair price in the situation would have been OK, and the outstanding balance justified, but $10? Thanks again. If I get any more info I'll post again.
Do share with us the outcome of this situation!!