Posted on: 05th Feb, 2011 05:09 pm
I have an interesting situation - I just had my home foreclosed last month and had a chapter 7 bk discharged 2 months ago. My home had a 2nd and 3rd lein on it for a heloc (2nd) and an sba (3rd). When I went bk, these creditors lost all rights to collect from me personally but retained leins on the title of my home. However, both the 2nd and 3rd lein were underwater based upon the sales price (i.e. the home sold for about what was owed on the 1st mortgage). My understanding is that at the time of the trustee sale (which happened last month), the 2nd and 3rd lein got stripped from the title because there was no money to pay them off right?
My attorney is telling me that the home was foreclosed on in error (bank error) and that it will likely be reversed because the sales date was postphoned but not caught by the bank in time and they sold it anyways. If the trustee sale is reversed and I own the property again, are the 2nd and 3rd leins still going to be on the title, or when they were stripped from the title, are they gone forever even though it was a big mistake?
My attorney is telling me that the home was foreclosed on in error (bank error) and that it will likely be reversed because the sales date was postphoned but not caught by the bank in time and they sold it anyways. If the trustee sale is reversed and I own the property again, are the 2nd and 3rd leins still going to be on the title, or when they were stripped from the title, are they gone forever even though it was a big mistake?
Welcome damon,
As the bankruptcy filing has been discharged, you don't remain personally liable for paying off the mortgage to any of the lenders. The amount received from the sale of the property will be given to the first lender. You should have a word with your attorney and ask him to convince the lender to sell off the property.
As the bankruptcy filing has been discharged, you don't remain personally liable for paying off the mortgage to any of the lenders. The amount received from the sale of the property will be given to the first lender. You should have a word with your attorney and ask him to convince the lender to sell off the property.