I will try to add value to the dialog with some additional information and thoughts. You have been given very good advice, but I just wanted to add a few things to see if it helps. If it doesn't help you I am sorry!! However, I am really just trying to add to the other VERY GOOD advice with some thoughts of my own to help...
Originally Posted by Fearless HAWK
Can Someone Provide Information, Please?
It's my understanding they can get a summary judgment for the difference between the balance owed on the loan and what the house sells for. My question is:
#1: Does that mean the difference between the loan balance ($100K) and what the house sold for at the FORECLOSURE AUCTION? ($ 50,000.) YES
- OR - What the house sells for once they put it on the market? NO
If it's the latter of the two.
So sorry to say Fearless Hawk, yes you are correct. It means that they are claiming that you STILL OWE them the balance of $50,000.00
A JUDGMENT DEFICIENCY- is defined as Not having ENOUGH funds to pay a Debt. and thus meaning, THE JUDGMENT DEFICIENCY CAN AND IS LEGALLY ATTACHED TO ANYTHING THAT YOU HAVE OF LEGAL VALUE.
This means REAL PROPERTY (REAL ESTATE, your house and land) and ALL PERSONAL BELONGINGS. They have the right to come into your home and take for themselves WHAT EVER they feel like taking, in an attempt to SELL it to make up for the "DEFICIENCY". That is their way of trying to recuperate costs......
Even though their FORECLOSURE WAS FRAUDULENT??? YOU BET YOUR SWEET BUNS! They will MAKE, and will TAKE as much away from you as possible.
I have a suggestion here, and you REALLY SHOULD FOLLOW IT ASAP.
1. GET ALL OF YOUR IRREPLACEABLE THINGS OUT OF THIS HOUSE NOW, AND AT A FRIENDS, RELATIVES, OR STORAGE. (These are things such as Pictures, family heirlooms, keepsakes, collections........ Anything that you have that irreplaceable........MUST BE REMOVED FROM YOUR HOME NOW!
(If I were you, I would remove everything except the bare minimum to still keep the house running.) Instead of a couch use lawn chairs....... LOL I can only imagine their discontent, when they came to your home, and found nothing of real value. It would absolutely drive them insane. LOL LOL.
**********GET ALL, EVERY SINGLE PIECE OF PAPER OUT OF YOUR HOME THAT HAS TO DO WITH THIS MORTGAGE SERVICING FRAUD******* leave no papers behind for them to destroy, read, or use to cover their azzez, and win the fight against you!
I second everything said above. You really need to be smart here. Because they have sold your home for less than you owe, they absolutely will come after you for the difference. You may also want to think about your vehicles, and think about some alternatives to your ownership. Do you have anything else that has significant value that they might try to seize? If so, take a look at how to handle these things. But be careful and smart!! Have you told them where you work, or is it in their files. You may want to be careful they do not get permission to garnish your wages.
Q. #2: Will they be required to give US the difference between the loan balance and the SELLING PRICE? NO, they are supposed to ........ BUT THEY DO NOT! It is against the LAW for them to keep "PROCEEDS" from the sale of a FORECLOSED home, they know this, and DON'T CARE....... Because they are ALLOWED TO GET AWAY WITH IT!
If your home sells for $250,000. They will keep all of the funds, and still claim that you owe them the deficiency of the $50K as stated above in #!
Here's what they will do. They will almost certainly sell the house for more than they got in f/c sale. However, they are going to tack on a ridiculous amount of fees. All of these fees will actually be tens of thousands more than what they sell the property for. THEN, they will go after the investors to cover this money that they "lost" in the sale of your home. It's actually in their agreement that they can and WILL do this!! So, imagine that they bought your home for $200K, and you still owed $250K. They come after you for the $50K. Now, they list the home (probably with a kick-back from the listing agent, or they have an interest in the agency) and sell it for $325K. However, in consummating this sale, they have generated all kinds of fees in order to make the home ready for sale. These fees total $95K. So, they tell the investors this story: $250K (loan amount), sold for $325, but incurred $95 K in fees and other costs associated with disposing of the property. So, they need to recover $20K from the investors. Then, they get the $50K from you. Then they get the kick-back from the real estate agency, the appraiser, the lawyers, title company, and anybody else associated with this property. So, the top line of their balance sheet gets your $50, the investors $20, let's say $15 in kickbacks (not quite 20% of the $95K), plus any amount they might get from any of the myriad insurance policies they have in place. So, they actually make more than $100K on a property worth $325. You get hosed, the investors get hosed, the insurance companies get hosed, but the servicer is making ridiculous amounts of money. Hawk, even of I am wrong by 75%, they are making sick money for manufacturing a foreclosure!!! They are most certainly "losing money" by foreclosing on your property. This is a myth of epic proportions!!
Q. #3: Can they deduct "repairs" they had done in order to get the house ready to sell from the amount we are owed? WELL, if you think that they are going to "CLAIM" that they had to pay for repairs, then you need to get CONTRACTORS in your home immediately for estimates.
Many Contractors will give you an ESTIMATE "FREE OF CHARGE" for what they think it might cost to repair the property.
For Plumbing issues you will need to call a Plumber for their FREE ESTIMATE
For ELECTRICAL, you will need to call an ELECTRICAL Company for their FREE ESTIMATE.
For a leaky roof, You'll need a Roofing company...... and so on.
HERE IS JUST ANOTHER IDEA................... Let's say NOTHING in your house needs to be fixed........ TO COVER YOUR BUTT, (if you think they are going to lie, and claim repairs are needed) CALL EACH OF THE SERVICE COMPANIES MENTIONED ABOVE..... Ask them if they can come to your home to Verify that there is no plumbing problem, no electrical problem, No sagging roof. AND so forth.
An estimate of "NO REPAIRS NEEDED" is just another way to COVER your back.
IF you PURPOSELY DESTROYED the home before the foreclosure, YES they can!!! Normal wear and tear? Not likely. What was the condition of the home when they FORECLOSED?
You absolutely can and should do what is mentioned here; especially if you hope to have this situation turn in your favor. However, if you think there is no way you are going to get your home back, you might consider leaving them absolutely nothing of value. Sometimes houses just really have all kinds of problems that no one knew about. Use your imagination...
And, if that is the case...
Q. #4: What recourse would we have if there is proof some or all of those repairs are bogus? (SEE ABOVE, about the "NO REPAIRS NEEDED" estimates)
The BEST THING for you to do right now is get ahold of a CAM CORDER, (video camera recorder) and walk with it through the ENTIRE house, showing, EVERY WALL, every floor, every ceiling, every fixture, like overhead lighting, wall outlets, and light switches, EVERY COUNTER, SINK, TOILET, SHOWER, APPLIANCE (INSIDE the fridge,stove, cabinets, and the OUTSIDE of these items of course.) Do you have an attic? You will want to get that on the film too. Get the hot water heater, the well, ANYTHING AND EVERYTHING that is a part of the home...... Even an old shed out back, EVEN the Working Air conditioner unit. Then when you are all done with that......
Start off at the street and take video of your entire property from left to right, and down the sides of the house, and then the entire back yard.
LASTLY, YOU WILL NOW WANT AND NEED TO HAVE AN APPRAISER COME INTO YOUR HOME, AND GIVE YOU AN APPRAISAL ON THE PROPERTY. This will cost a few hundred Dollars, but may save you, or help you recoup Thousands, and thousands, in the future........ when you win your case against these S.O.B.'S
In ESSENCE............ COUGH UP THE MONEY AND GET THE APPRAISAL DONE ASAP!!!!!!!!
Once they have removed you from your home it is too late for you to get that done.
You may be thinking well, I've got paper work right here from the Mortgage company where they did the appraisal, so I don't need to get another one done.
Well that's not true..... The Mortgage Companies are well known for hiring specific appraisers that will either devalue a property, or elevate the value, to suit the needs of the Mortgage Company. You CANNOT count on the Mortgage Companies appraisal to be correct.
Last question: If there was information and proof that someone very high up in the "Fannie Mae" program was involved in a "predatory lending" mortgage SCAM, would there be any way it could be used to benefit homeowners? (OTHER than blackmail or extortion, of course!) <chuckle> ABSOLUTELY, if you can provide the "links" (to such fraud) in Black and white, to a Judge, then there's another step for you to take!
If you want to keep your home, you need to divulge this; if you can prove it. Here's my way of thinking: If you can explain the "proof" of a link in FNMA to somebody who has no idea what you are talking about, and they understand your explanation, then go for it. If it is a huge stretch that requires a suspension of disbelief to understand, use it at your own peril
Any help on any of these questions would be greatly appreciated.
I will post information next month that should be valuable to others seeking help on this forum.
Thanks, my friends call me "Hawk"
PS By the way, it's absolutely amazing how FEARLESS one gets when he has NOTHING left to LOOSE!! <Laughing like a madman>
Hawk, I think you are in a place where you need to come out swinging. I am not sure there is much downside. I think you can fight hard and strong and make them prove they didn't commit fraud. Show the judge the information you have gathered. Ask the judge who has the most to gain by foreclosing-- you or the mortgage servicer. Ask the judge who has the most to gain by lying about the paper trail. Ask the judge why they refuse to reinstate your note, especially if they have already "lost" $50K in the property. Why wouldn't they let you back into it, unless they expect to make more by foreclosing...Hit hard, hit fast, hit often!!! Good luck Hawk!
Let us know if we can help (I hope I have).