Bankruptcy filed and discharged in 2010, which included mortgage and HELOC located in FL - I'm in NH. Foreclosure process dismissed by FL judge in 2014 after 7 years never completed. Suspect activity on mortgage early 2016 (principal balance reduction by $18K that I did not make, plus reversal/changes in Escrow balance, etc.). Six weeks ago received letter from FL attorney the lender was moving forward to foreclose with a balance due of $332K with no breakdown of what made up that number (last statement from BOA showed total of principal and negative escrow balance of $272K. Can't imagine any foreclosure expenses totaled $60K. 1) Would HELOC loan continued to have accrued interest if loan was included in bankruptcy? 2) Is there a way to learn payoff of primary mortgage and HELOC (if applicable) without contacting either lender? 3) With no foreclosure filings on property, can I sell without lender(s) approval? 4) Would HELOC loan still have claim? I would like to sell property since I'm listed as owner if I can do so and make profit, which is dependent upon the legal answers known (per above). Any advice/direction on this matter will be GREATLY appreciated! Thank you!
This is not a simple straight forward question that can be answered in this forum. A review of your legal documents will be necessary. If the lender is seeking $332K, what makes you think they will settle for much less? You will not be in a situation to make a profit, if you are able to sell it. Anyone who purchases real estate, other than a naive first time home buyer, will spend 10 to 15 mins on the Internet and know your entire situation. You'd be lucky to get 65 cents on the dollar. To properly answer your questions and address your concerns, the best way to handle this is with an in person consultation with an experienced FL Mortgage Foreclosure Defense and Bankruptcy attorney. Use AVVO's Find a Lawyer tool to select a qualified attorney. Good luck. THIS IS NOT LEGAL ADVICE! YOU NEED TO SPEAK TO AN ATTORNEY WHO IS LICENSED IN YOUR STATE FOR LEGAL ADVICE. This is merely suggestions for you to think about in discussing your situation with the local attorney.
If you found this Answer helpful, please mark it as "Best Answer" Please be advised that the answer above is only general in nature cannot be construed as legal advice, given that not enough facts are known. It is your responsibility to retain a lawyer to analyze the facts specific to your particular situation in order to give you specific advice. Specific answers will require cognizance of all pertinent facts about your case. Any answers offered on Avvo are of a general nature only, and are not meant to create an attorney-client relationship.
Secured loans can be discharged in Chapter 7 bankruptcy, but the lien is also owned by the property so the debt will be unaffected. Just think of the property as being a living breathing co-signer with assets. The lender is the person in the best position to provide you with information about the interest, late charges, and other accrued fees. If you do not wish to contact the lender to get this information, you certainly can give your power of attorney to someone to get it for you. As a property owner, you only need the lender's approval to sell if you sell for less than the amount owed to the lender. If the sale pays off the mortgages in full, the lender is not likely to care if you sell to Godzilla! Hope this perspective helps!
I almost never post "just talk to an attorney," but just talk to an attorney.
A bit of perspective, you've got a $332,000 home and a $272,000 escrow deficiency. This is a $600,000 case. Unless you are a very wealthy person, this might be the largest transaction of your life! Hire someone to help.
To answer questions 3 and 4, you almost certainly can't sell the property without the lender's approval. The lien runs with the property.
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