Posted on: 31st May, 2011 12:09 pm
Hello, i don't know alot about mortgages but my parents have 2 mortgages on their house i believe, both through different banks, well the second one i believe has come due or the bank made it come due and expected my parents to give them 160k or they would forclose, so now they are forclosing, they just posted our house a few minutes ago. Now my parents are trying to figure out how not to lose the house. My dad said that he and my mom signed the mortgage and he explained every mortgage has a "note". However they didnt both sign the note, just my dad did. So my dad was wondering if he filed bankruptcy what happens to the mortgage because the note wouldnt be valid anymore? but the mortgage would still be under my moms name. My dad said the bank messed up when setting it up which is why hes the only one on the note. so basically what im asking is would it make any difference if he himself filed bankruptcy?
When one party initiates BK and you include the mortgage, that will halt the foreclsosure for a few weeks. If the bank messed up and only one of the parties are on the note, but the loan needed both to be on the loan to approve it, I would contact the bank and tell them to show you the note. Have them produce the promissory note. Many banks cannot, because they are lost etc. When you file the bk, it will push out the TS or trustee sale. Once you have the Notice of Default, you have 90 days before they can place a notice of TS on the home, then they have to publish this for 21 days, then a sale can take place. You can file the BK the minute before the TS action time. As long as the BK is valid and filed before the TS, the BK takes precedence. You can file BK 2x to avoid the TS.
In many states, the spouse signs the mortgage to give up their rights in the event of foreclosure when the Borrower is only one of the married persons on the Note in the marital home. If that is the case, the lender did not actually "mess up".
Bankruptcy and foreclosure procedures are different from state to state. I have no idea in which state the property is located.
Bankruptcy and foreclosure procedures are different from state to state. I have no idea in which state the property is located.
John, your veracity and good sense are always appreciated. Too many sharpshooters are on hand, applying local sense to national issues.
I concur with you - the laws of each state will rule regarding how a foreclosure takes place. Any information given concerning foreclosure is useless unless it's germane to the specific locale.
I concur with you - the laws of each state will rule regarding how a foreclosure takes place. Any information given concerning foreclosure is useless unless it's germane to the specific locale.
The property is located in Michigan, sorry took so long for the reply.
