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David Barnes’s Answers

3 total

  • Who do I pay my rent to when my mortgage company is in foreclosure? The bank or the management company

    I receive a letter from an attorney that was very professional indicating that the management company was in foreclosure and beginning with February's rent I was to start sending the payment to them. The next day i received a correction letter fr...

    David’s Answer

    Atty Walton generally has a good answer. Rather than starting a separate interpleader action, you may simply be able to join the foreclosure action as a third party and ask the court to decide where the rent should go. This would be a lot easier and less expensive for you. Some judges will permit this, ohters will not - depending on the judge and local court rules. It is worth a try.

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  • Can New York lender come after Wisconsin property?

    We moved from New York to Wisconsin few years ago. My spouse still owns the NY property which is currently in the short sale process (possibly foreclosure if short sale doesn't get approved). I am not on the mortgage or title for NY. The NY pro...

    David’s Answer

    Your question raises several issues. Is there a deficiency judgment being sought by the mortgage holder? If not, end of story. In a short sale with the borrower leaving the state, there may not be so that the redemption period can be shortened. Check on that first.

    Generally, when one seeks to enforce a judgment obtained in a different state, the obligation arises out of the state where the judgment was obtained. Therefore, if the mortgage holder is seeking a deficiency judgment, you should talk to a NY lawyer as to your obligation on the debt under NY law?

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  • Pay off second mortgage right away after foreclosure?

    I am going through the foreclosure process. My loan is through WHEDA and I also had taken out a small second mortgage through them to cover closing costs. I understand that once the house has been turned over to them, I will still be responsible f...

    David’s Answer

    Generally mortgages contain provisions that if the property is sold or foreclosed upon, the outstanding loan obligations secured by the mortgage become immediately due and payable. It is important to review the terms of your mortgage to see if it contains such a provision.

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