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That's awful. The bank took the risk when they gave a mortgage to a person who couldn't afford it, supported by an appraisal that may have been fudged to support the loan amount. He will never be on his feet. He has no savings, limited income potential and very few years left to work.
Are you sure he couldn't afford the mortgage at the time he applied for it? Why did he sign up for a house payment he couldn't afford from day 1? Or was it that something happened to his finances after he purchased? Sounds like we're missing something here...
His reason for buying was based on an erroneous belief about the end of his existing housing situation. No one know why he thought that. The home he was in was eventually given to him. Now that home may be at risk.
His reason for buying was based on an erroneous belief about the end of his existing housing situation. No one know why he thought that. The home he was in was eventually given to him. Now that home may be at risk.
Sounds like the bank wasn't really the problem in that house purchase/mortgage.
Still learning about this, but it appears there is already a deficiency judgement against him. I wonder how one goes about purchasing a judgement.
Do you mean "how do you pay off a judgment?" You'd need to deal with the party which was owed the money.
If the deficiency judgment was from the bank, that would imply that they actually foreclosed and took back the house--in which case, he wouldn't have been the owner at the time the house was demolished, so he wouldn't be liable for demolition costs imposed by the city.
Since you stated that you were seeing an attorney on Oct. 10, were you able to straighten out some of the facts surrounding the issue?
A deficiency judgement means that the foreclosure actually went through. The deficiency means that the foreclosure sale did not bring in enough money to cover the original mortgage loan. The lender
received a judgement against your friend to recover the difference in money between what was owed on the loan and what the foreclosure sale brought in.
Which brings us back to the question of getting your friend removed from being listed as owner of record since the bank, as they foreclosed, owns the property. Is there an attorney working on this ?
We had an attorney write a response letter which we sent. That was the end of that attorneys involvement. The result to our letter was a hearing. We didn't expect them to schedule our hearing, about the demolition, as part of the foreclosure case. We fear that has opened a new can of worms. We hired a new lawyer yesterday. He has made several contacts and gathered some new information. We had been unable to get a return call from the lawyer that handled the foreclosure. Our new guy has spoke with the lawyers on both sides.
It sounds like you really need an accurate timeline of what has transpired. If the bank foreclosed and took back the house, then if the house was demolished subsequent to the bank taking the house, then the demolition liability would be on them.
In any case, it sounds like a mess. Depending on your friends assets, declaring bankruptcy may even be an option. Good luck.
As time goes by I gain a better understanding of this.
As I see it, they can take everything he owns to satisfy the judgement and keep the property too while leaving him responsible for it's taxis and any other liability while receiving no benefit from it.
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