Can a home in foreclosure be sold without permission ?

Deal Score0

So here’s my delema-I got into a hardship status,and along with my own home,and three rental properties in the San Jose area-I didnt have any money to pay for mortgages,and so the first two to default (mom and dads home and my first home in bay area)were as having $ 500,000 in equity on EACH-both valued at about$ 750,000-I called my property managment company,and with thier real estate agent present -we decided to allow my prop.man. to have permission to act as third party to the mortgage people,and ,along with the hardship letter and financial disclosure-they was supposed to negotiate with lender to sell one of the other rental homes,and pay off both loans on the other homes-which they did not-according to the lender,time came down to last minute,and as the homes was to go to auction at 10 am-at 8″30am I was told they were sold already?-ok,number one? is: isn’t prop management responible for this?why can a lender sell home without permission-and before auction even starts?Why am I not entitled to the equity at least?

Currently I am six months behind on my mortgage. This was because BackGround: I was laid off of my Job. I did not have a job for 3 months and on the 2nd month of being unemployed i started to miss my mortgage payments. I got a new Job for less salary but I can still afford my mortgage payments. By the time i got my finances in order i had missed now 4 payments. I contacted the bank and they requested me to fill out a “hardship” and apply for a loan modification. I filled this information out and it took the bank 1 month and a half to recieve my paper work???? Currently my application is under review for the next 30-60 days. It has been approximently 30 days and now i am approx. 6 months passed due and in “Active Foreclosure”. This news is the most recent/new when i called the bank to find out the status of my modification application .(They told me that i will get a letter with results in the next 30 days of the application)
MY Situation:
Around the fourth month the bank suggested that I make make payments to try to make my account current. I chose not to do this for two reasons. The past due amount is not affordable and logically it did not make sense to me to make a payment if the bank was going to foreclose on me anyways.
The way i look at it is I am really not losing anything (except a poor credit score) is the bank forcloses. I am upside down approx $ 90,000 anyways.

Overall i would like a loan modification that takes my pass due amount and puts it at the end of my loan and changes my loan from a interest only to a 30 year fix.

I am still waiting to hear back from IndyMac about the modification application, but what concerns me is the “Active Foreclosure”. I have not recieved anything in the mail. This info was only given to me over the phone along with my modification application under review.

Am i screwed? are there any suggestions?

Thank You

6 Comments
  1. Reply
    faith4me
    February 20, 2011 at 4:43 pm

    You more than likely need an attorney who specializes in real estate, however, I am pretty sure that being that the home was in foreclosure, your permission was not needed or required.

  2. Reply
    dcoumbs
    February 20, 2011 at 5:30 pm

    Ok, this sounds like a cop out, but you really need a lawyer. Now. You can easily find one to work on commission. There is too much money on the table to waste time asking questions online. That is for “how do I stop my toilet from running and yet avoid a $ 50 plumber’s fee.”

    You are entitled to your equity under ANY scenerio. Your lender knows this. They have to sell the property, pay themselves off, and give you the rest. The problem is that they will rack up alot of legal fees and other fees to themselves, then have no motivation to really market the property for top dollar if there is as much equity as you say. Meanwhile you get upset and leave the places looking bad, or worse yet make them evict you which causes more expenses which come out of your equity.

    As to your time line, you could have paid something -not necessarily everything- right up until 9:59 and kept the auction from going forward. If any of the people you had “working” for you really had your best interest at heart you would have been told this. Heck, I would have lent you a couple of grand and helped you move out of your house for any piece of a million dollars!

    That brings me back to GET A LAWYER. Have him work on commission so he is motivated to get you as much of your money as possible.

    Good luck

  3. Reply
    Pengy
    February 20, 2011 at 6:18 pm

    Sounds more like they did not sell and you went into foreclosure pay the mortgage and they can’t sell them. Had equity was valued at 750K do you not read the news and see the devaluation of homes especially in CA, NV, and FL the worth is down almost 50%.

  4. Reply
    Greg Phillips
    February 20, 2011 at 6:35 pm

    File Chapter 13 and stop the foreclosure plus keep the house or file Chapter 7 and discharge it all.

    or

    The mortgage lenders are very unmotivated to complete these requests when the borrower is initiating them. Hire and attorney to communicate with the lender and negotiate the loan modification.

    Question: Does your current mortgage payment exceed 31% of your monthly gross income? If to you should qualify for the Home Affordable Modification Program which would potentiallly lower your rate to as little as 2% to bring your housing ratio down to under 31%.

  5. Reply
    Landlord
    February 20, 2011 at 7:10 pm

    It sounds like they are not going to modify your loan to me. You changing your mind about an interest only loan is likely the main problem. You should see what they offer you before you start making such drastic demands, which are pretty close to be completely opposite of your earlier choices.

  6. Reply
    bryan l
    February 20, 2011 at 7:29 pm

    You need to continue to call and follow up, and a lesson for folks soon as you loose your job file unemployment and call your bank. What APR do you have if you have a 5-6.5 percent rate and it is fixed you already have a fair deal. Now a 7% or higher the bank will most likely modify that loan. Think about it they get a toxic asset costing them well over 100k or have you continue to pay and the toxic asset is still your problem and fix you monthly payment. call daily on this.
    here is a hot line i would advise you to call1-888-995-HOPE

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