The short answer is that you may have claims against the title company, your old mortgage company, UPS, and the credit reporting companies. This is a complicated subject, and you need an experienced Virginia attorney to review the facts and documents to advise you of your options for repairing the harm you have suffered. There are legal strategies for resolving this matter, but you should not wait to consult with counsel. I am very sorry to hear about this unfortunate situation.See question
I agree with Mr. Hart and Mr. Boyer. The foreclosure process in Virginia moves quickly. Once the lender declares the loan payable in full, the trustee (or substitute trustee) tasked with foreclosing will begin sending notices. The notice of the foreclosure must be sent out by certified mail fourteen days before the sale date. Unfortunately, many homeowners miss the sale notice. I urge you to consult with attorney experienced in Virginia foreclosure law.See question
If the second mortgage note falls under Virginia's version of the Uniform Commercial Code ("UCC") for negotiable instruments (Va Code § 8.3A-101 et seq.), then the applicable statute of limitations would be set forth in Va. Code § 8.3A-118(a). That subsection states the following:
Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years after the accelerated due date.
Va Code § 8.3A-118(a).
In all likelihood, the second mortgage note you signed constitutes a negotiable instrument subject to the UCC; however, a complete analysis requires more facts than you have disclosed in your question. Based on the information provided, there is no way to know if the statute of limitations under Va. Code § 8.3A-118(a) has expired because you (1) have not stated the term of the note and (2) advised whether the second mortgage note has been accelerated by the lender. If the loan has been accelerated, the statute of limitations for the entire balance owed under the note began to run on the accelerated due date. If the loan has not been accelerated, then the statute of limitations runs from each payment due date stated in the note. I recommend that you consult with a Virginia lawyer experienced in this area for further guidance. As a practical matter, the chances of collection action by the lender (or an assignee) decrease as time passes.See question
This issue raises legal and practical questions:
(1) Legally speaking, can the creditor take collection action against the property?
(2) Practically speaking, is there enough accessible value in the property to justify collection action by the creditor?
The information you have provided is not sufficient to provide an answer to either question. I recommend that you consult with a knowledgeable attorney.See question
The note and deed of trust signed at closing should govern the effect of the co-borrower's bankruptcy on the loan status. In Virginia, many residential deeds of trust contain language permitting acceleration of the loan and foreclosure action based on the filing of a bankruptcy petition by a co-borrower. As a practical matter, lenders typically refrain from acceleration and foreclosure where payments are current, even when the loan documents classify a bankruptcy filing as a default on the loan. Your question, like most, is highly fact specific. I recommend that you consult with a knowledgeable attorney for guidance in this area. In order to definitively answer your question, an attorney would need to review your loan documents and the facts surrounding your question.See question
This is a complicated subject. In many circumstances, a good faith purchaser for value at a foreclosure sale is protected from a legal challenge to its title to the subject property. There may be exceptions to this rule based on the circumstances of the individual case, particularly where the purchaser has knowledge of the defect in the foreclosure sale. If the foreclosure purchaser re-sold the property to another party after the sale, the claim to regain title against the most recent purchaser would be extremely tenuous, at best.
If the lender breached the loan documents or violated the law during the foreclosure process, the borrower may have a claim for damages. The determination of the existence or non-existence of a claim is highly fact specific. I strongly recommend that you consult with a lawyer experienced with Virginia foreclosure law.See question