my grandfather got a 320.000 dollar loan. He was on a set income and didn't qualify for this loan. They also gave him an arm loan through countrywide at 1%. Is this grounds for a forgiven mortage. He passed away and left me the house in living trust. Now the loan is upside down at 420.000. this loan was bunk to begin with. What are my alternatives?
Ok that is good to know. They did put the house in my name as far as I know however his name is still on it too. I am like a crippled bird when it comes to house for this is my first house I am trying to learn everything so fast. I know this I have every stich of paperwork. I have had a loan investigator check this out already and hes says there is foul play. I have recieved 1300 dollars from the class action suit. I have had the DOJ contact me as well asking me if I am willing to testify against countrywide. My grandfather was on a set income and they put in the contract that he brought in 5600 a month. that is a lie. He brought in 1200 month. Countrywide made two contracts. One in which wasnt signed. I have had to file chapter 13 just to keep the house. I am so financially exhausted trying to keep up with this money pit. I promised my grandfather I would take care of things and I am trying but I am so worn out. Thank you for your help.
Real Estate Attorney
A few areas which you need to clarify when you consult with an attorney. Has title been transferred to your name from the trust or is it still under his trust name?
Also investigate whether this was a countrywide loan subject to class settlement or not?
Regarding the answer to forgiveness, NO it will not be forgiven but n so far as any possible claims against BOA the successor in interest to Countrywide , you need to consult with an attorney to see whether your grandfather's claim "survives" and in fact you as the heir can "step in his shoes" and present the claim if you have any.
I am not sure what you mean by "upside down at 420,000.00" sounds like it was a negative amortization loan which added to the principal in which case do fully investigate the class action settlement which in fact BOA had regarding countrywide's "pick a pay" loans. I assume when you say upside down, the house is worth less than the loan balance.
As mentioned in previous answers , some other options could be available to you depending on the house value.
It is strongly suggested that you seek advise of experience lawyer in this case because there are a number of issues involved and potentially you could have claim against BOA.
Best of luck,
In addition to AVVO's disclaimer, please note that by this answer no attorney client relationship is intended and unless there is a signed retainer agreement in place, neither me nor anyone in our office has intended to solicit clients.
No, the loan would not be forgiven.
I assume you are now the sole owner, but you don't indicate anything about your financial situation nor the current market value of the property.
Some options which you can discuss with an attorney in more detail include short sale, deed in lieu of foreclosure, foreclosure and refinancing.
The information presented here is general in nature and is not intended, nor should be construed, as legal advice. This posting does not create any attorney-client relationship with the author (who is only admitted to practice law in the State of California). For specific advice about your particular situation, consult your own attorney.