Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


How can a bank owning a 2nd mortgage foreclose on a home when the 2nd mortgage was dismissed in a bankruptcy?

Discuss the legalities of Bankruptcy Law

How can a bank owning a 2nd mortgage foreclose on a home when the 2nd mortgage was dismissed in a bankruptcy?

Postby cumhea » Tue Dec 13, 2011 2:49 am

Many years ago, my father and my stepmom declared bankruptcy. One of the things they had dismissed was the second mortgage on their home. The bankruptcy court approved their filing and in the paperwork I have seen Ditech, the owner of the second mortgage was notified of the dismissal. A couple of years later, a real estate company here in town received a phone call from GMAC bank, asking them to go to my dads house and make sure it was vacant and put new locks on the doors.

What GMAC didnt know was that my dad did a lot of work for this company as a pirvate contractor and instead of doing what the bank asked them to do, they called my dad and told him what had happened and my dad called GMAC. GMAC told my dad that his account was delinquent and that they were going to foreclose on the house. My dad reluctantly started making the payments to GMAC after speaking with several lawyers who, when they were asked if GMAC could do this, in turn asked him why he didnt think he would have to pay this even though it was dismissed in a bankruptcy.

A few years went by and all of the sudden, GMAC really started putting pressure on my dad about foreclosing on his home even though he was making the payments they wanted on time and in full every month. Eventually, my dad became ill with cancer and died a few months later, leaving my stepmom to take care of everything. GMAC eventually was able to convince Wells Fargo, the owner of the primary mortgage to foreclose on the house "kicking" my stepmom and 10 year old sister out into the street.

I know that Ditech is owned by GMAC who is the corporation that relentlessly harrassed my family until they were able to get what they wanted. How can this be legal? I know that some laws regarding real estate and mortgages change from state to state but for the most part they are all governed under federal law. Im just trying to figure out how this can be done. It just seems to me like a bunch of illegal maneuvering done by the bank so that they can foreclose on a property. Any information whatsoever on this would be very much appreciated.
cumhea
 
Posts: 50
Joined: Thu Mar 31, 2011 2:51 pm

How can a bank owning a 2nd mortgage foreclose on a home when the 2nd mortgage was dismissed in a bankruptcy?

Postby muata2 » Tue Dec 13, 2011 2:57 am

First, is your stepmom on the deed as a joint tenant? She would not automatically be the owner of the property just because they were married. As far as the bankruptcy, since your father has died you would have to find a copy of the Bankruptcy discharge and prove that the mortgage was included. Also, the problem wit 2nd mortgages is that they are often "revolving" and can be left open after they were paid off.

You are going to have to get a lawyer, one for the proof of the estate and to prove that the lender is trying to collect on a debt that was paid off under a bankruptcy.
muata2
 
Posts: 60
Joined: Sat Apr 02, 2011 7:52 am

How can a bank owning a 2nd mortgage foreclose on a home when the 2nd mortgage was dismissed in a bankruptcy?

Postby bret11 » Tue Dec 13, 2011 3:05 am

I had basically the same problem last year. Play it safe by click on www.lawyersearchspot.tk
bret11
 
Posts: 43
Joined: Thu Mar 31, 2011 5:42 pm


Return to Bankruptcy Law

 


  • Related topics
    Replies
    Views
    Last post