Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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I bought an HOA foreclosure 2 years a go, and got possession to the property. The Lender filed a complaint 4 years a go, and it was dismissed for lack of prosecution. They never re-filed.  The house was in horrible condition, since it was abandoned. There was also all kind of City Lien Violations.  During the last few years I spent a lot of money in:

1. Appliances, repairs, and maintaining the property.
2. I paid the previous owner's unpaid HOA dues.
3. I paid over $2000.00 to the City for unpaid water bills.
4. I paid a contractor to comply with the City Liens Violations, and then I paid an attorney to negotiate the Liens since it was a $100.00 day fines occurring for over a year. 

Since foreclosures is a court of equity, and I have improved the conditions of the property, paid and settled debts, by that I created more equity to the property. My question is when the lender is going to file their foreclosure complaint, would I be able to counter-claim for the equity I created in the property, due to the negligence of the lender failing to take action for many years since the default date of the buyer?

I want to use this argument, not for the sake of getting money from the lender, but to be in a better position to try and settle for the first mortgage, I have some savings and I would like to offer the lender an amount of money in cash to settle their claim.

Any feedback is appreciated.

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One would think that the foreclosure sale was the alternate collection method of the Note. Once foreclosure was executed then the Note would in essence cease to exist. If the Note does not exist then there could be no security securing what does not exist, therefore, as an innocent purchaser it appears upon purchase of the foreclosure property the original lender of the defaulted Note has not a perfected security interest in the property you bought as buyer in good faith. Maybe this is why the original lien holder has not come forward. No lien to enforce.
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Stand corrected, HOA foreclosure, you bought the property with the original lenders lien, still the question is such lien enforceable, laches, statute of limitation, etc...
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This may be one situation when a declaratory judgement could be the remedy. I'm just guessing, though.
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   Most of the time, at least in Florida, a FIRST mortgage trumps an HOA lien. This can be
determined by obtaining a copy of the Association documents.
   Once in a while though, the HOA lien is in first place, so if you bought the property at a
foreclosure sale, the first mortgage lien would be wiped out.
   From my research, an HOA lien always trumps a second or later mortgage, so you need
to determine if the mortgage in question was a first or second.
   A property tax lien trumps both the HOA and the first mortgage, so the answer might be
to stop paying the taxes and buy it back at a tax deed sale.
   Another solution, if the mortgage is in first place, would be to try and buy it from who ever
owns it and then satisfy it.
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Based on a post on this Forum, there is a Statue of Limitation (SOL) that comes into play, my guess, based on the State the property is located in (?).  In Florida, there is a five year SOL from the date of the acceleration letter.  I'm not sure how the SOL comes into play if the current owner is not the individuals on the Note/Mortgage.

If I was in your position, I would examine the original foreclosure file to determine why the case was left hanging and did not proceed to the Final Judgment stage.  There might be some serious issues with the Mortgage/Note.  I would check the legal description on the Note/Mortgage, compares to the "actual" property description.  There is definitely a reason why the Lender has not pursue re-filing of the case to date.

Why do you think they will re-file the case anytime soon?  Do you know when the Statue of Limitation is "triggered" in your State?
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