Forcelosure still pending after several lender transfers and 3 years

[lashuntal]

Hello,

 

I have a home that was being rented out by a 3rd party company after a divorce that has been in foreclosure for more that 2 years. The home was supposed to be a lease to own for the tenants but the company went under and just abandoned all the properties. The foreclosure process then began in late 2010. Since then the mortgage has been sold to several lenders over the course of this time and appears on my credit report multiple times. It also is still pending now. I'm not sure what to do or if there is anything that I can do to speed this process along so that I can begin to repair my credit and move on with life. Also it show on my credit report multiple times (once with each previous lender that it was sold to) What can I do to get that removed or is that accurate? Any suggestions are greatly appreciated!!

 

Thanks!

[jonathan03]

Do you mind sharing the specifics of your home? As in how much is it worth, how much did you owe, what state are you in? In certain states and situations its not a good idea for the lender to foreclose because of the time and involved. It can cost the bank $20-50 k per home to foreclosure based on their staff and overhead cost plus attorney fees.

 

Would you take this property back if you could get it free and clear? You may look for a local attorney and see if they can file a quiet title lawsuit against your lender. It makes them prove they are the lien holder and if they don't respond or don't have the necessary paperwork the lien is released. When they transfer the loan like they have several times in your case what could happen is that the new note holder doesn't record the right paper work with the recorder's office. So when you file the lawsuit the wrong lender is served and you could wipe the note away for $1500 in attorney fees.

 

I would bet that the bank doesn't have the necessary paperwork or it doesn't make financial sense to foreclose because of the market. A good local attorney can pull the case records and tell you what's happening. He may also find that your property was involved in the bank foreclsoure scandals where the banks didn't follow the correct procedures and you can pressure them for a mortgage release.

[Kuuner]

There is no foreclosure in existance now or historically that has cost anywhere near $20-$50K in expenses. $5 to $10K maybe, but your numbers are pure fiction Jonathan. A judicial foreclosure may end up costing that after years of protracted litigation but, that's a lawsuit, not a foreclosure per se and, a quiet title lawsuit is not designed to "Maybe them prove they are a lien holder" and I'd like the number of an attorney that will file quiet title and sue for $1,500!

 

"In certain states and situations its not a good idea for the lender to foreclose because of the time and involved" - Seriously? That's a ludicrous statement to make. Time is what it is and the cost has nothing to do with the "Staff & Overhead costs" that dictate the cost of a foreclosure. Publishing costs and TSG's are the primary costs associated with a foreclosure. In case you aren't a professional, employed, foreclosure associate, a TSG is a trustee sale guarrantee (That's title for the layperson). As a professional, employed foreclosure associate, you would scare me with your half truth knowledge of what a foreclosure is and how they are done.

 

I wouldn't place any hope in anything Jonathan says. It would appear he's been watching too much late night television. I've been foreclosing for greater than 20 years and nothing he says has any basis in truth or fact.

 

To your question, it depends. You can't speed up the process unless the foreclosing entity is willing to accept a deed in lieu of foreclosure, which they wouldn't do unless they are in first lien position and there are no other encumbrances. Yes, you can file a lawsuit. Who are you going to sue? What is the basis of your lawsuit? You stopped paying and your are upset that the foreclosure process has not completed yet. I would hope that isn't the basis of your suit.

 

Basically, in quiet title (Per Legal Dictionary.com): "The general rule is that the plaintiff may succeed only on the strength of his/her own claim to the real estate, and not on the weakness of the respondent's claim. The plaintiff bears the burden of proving that he owns the title to the property. A plaintiff may have less than a fee simple, or less than full ownership, and maintain an action to quiet title. So long as the plaintiff's interest is valid and the respondent's interest is not, the plaintiff will succeed in removing the cloud (the respondent's claim) from the title to the property". Using that as a baseline, your scenario would not appear on the surface to meet the requirements for a successful quiet title action. You would waste thousands of dollars only to lose in the end.

 

Wait it out until it's done, then move on.

[IndyPoolPlayer]

I wouldn't place any hope in anything Jonathan says. It would appear he's been watching too much late night television. I've been foreclosing for greater than 20 years and nothing he says has any basis in truth or fact.

 

Sounds like the rants I hear from a certain talk radio host claiming foreclosures on a home are illegal and mortgage companies don't maintain proper documentation, allowing homeowners to duck their mortgage.

[Kuuner]

Do you mind sharing the specifics of your home? As in how much is it worth, how much did you owe, what state are you in? In certain states and situations its not a good idea for the lender to foreclose because of the time and involved. It can cost the bank $20-50 k per home to foreclosure based on their staff and overhead cost plus attorney fees.

 

Would you take this property back if you could get it free and clear? You may look for a local attorney and see if they can file a quiet title lawsuit against your lender. It makes them prove they are the lien holder and if they don't respond or don't have the necessary paperwork the lien is released. When they transfer the loan like they have several times in your case what could happen is that the new note holder doesn't record the right paper work with the recorder's office. So when you file the lawsuit the wrong lender is served and you could wipe the note away for $1500 in attorney fees.

 

I would bet that the bank doesn't have the necessary paperwork or it doesn't make financial sense to foreclose because of the market. A good local attorney can pull the case records and tell you what's happening. He may also find that your property was involved in the bank foreclsoure scandals where the banks didn't follow the correct procedures and you can pressure them for a mortgage release.

Edited January 20, 2015 by Kuuner

[nekom]

If you're looking to speed up the process, you could launch a complaint with the CFPB accusing them of threatening to foreclose (if they did make such threats) and not following through, in violation of the FDCPA (threatening to take an action they can not legally do or do not intend to do). Worked for me, though it was a vastly different situation that I won't bore you with.