Foreclosure in 92706>Question Details

Elena, Home Seller in Santa Ana, CA

My investment home fell out of escrow and now the bank will sell it in an auction, can the bank sue me?

Asked by Elena, Santa Ana, CA Tue Sep 9, 2008

The investement home will be sold in an auction but I am afraid the bank will turn around and sue us. Is this possible? I received a letter where the bank purchased insurace for the home under our name, are we responsible to pay for it? We are paying mortgage for our home in Orange County, will this investment home have a negative effect if we tried to refinance? and how long will this appear in our credit? I tried going to the Fair Housing in Santa Ana to get legal advice but was told they don't help with that and had no referals for me. Any ideas where I can get help legaly just incase the bank from the inverstment home comes after us??

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The questions you asked leave your situation a little unclear. Is this an investment property that you were foreclosed on by the bank by having a Notice of default filed and then a Trustees auction where the bank acquired title. Or, is this a Bank owned property you were purchasing and it fell out of escrow and now the bank is going to sell it at an auction. If the latter is the case then the reason for it falling out of escrow needs to be explained. Was it because you defaulted or did you cancel the contract within you rights?

Now with this all said, It should be explained that REALTORS are not licensed attorneys and are thus not allowed to give legal advice. That is why it is important to work with a professional agent that knows when to have you bring in a licensed attorney or whose firm has a licensed attorney available.

Bill M Godwin
Bill@BillMGodwin.com
1 vote Thank Flag Link Tue Sep 9, 2008
It sounds like you were trying to sell a rental property but that sale fell through? If the bank is foreclosing, it sounds like you aren't making your payments? Most mortgages require homeowners to keep hazard insurance policies in effect on their homes as long as they have the mortgage. If you didn't pay for that insurance, the bank probably purchased it and added the premium to your loan balance.

It will definitely damage your credit if it forecloses. Foreclosures used to clear off credit reports in 7 years, but I've heard that it may now show for 10. Either way, it will definitely affect your ability to get new credit, including refinancing.

I doubt that the bank will come after you, but you could check with Legal Aid Society http://www.lasoc.com/ContentDetail.aspx?Id=14&ContentTyp…

Or the California Consumer Home Mortgage site :
http://www.yourhome.ca.gov/mortgage-help.shtml
Web Reference: http://LiveLakeForest.com
0 votes Thank Flag Link Tue Sep 9, 2008
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