Banks and creditors sell their "paper" aka accounts payable all the time. The key is if the debt is valid, if the collections are within the time frame as outlined by federal and your states collection law. If they get a judgement, than you are at a whole different level of debt and now have courts involved. You should not ignore and consult a lawyer for anything you do not understand to know your rights and or obligations.... more
First of all, if a seller defaults on his or her loan and misses 3 payments, the lender usually starts foreclosure procedures. It seems as though the sellers in this case were in default and you may not have been aware of it, so one of the things the seller can do is try to stop the litigation. In this case you should consult a real estate attorney to advise you and guide you in the right direction.
I recently closed on a property that was in a very similar situation. Depends on how far the litigation process is, the attorney should be able to help you.
Good luck and best wishes.... more
To be honest - when a home is currently in litigation prodeedings for a strict foreclosure, that means you may have a difficult time to entertain with your bank to sell your home under a phrase called "short sale". What a short sale is - defined as simple as can be, when a home owner wants to avoid strict foreclosure and make an agreement with their bank to sell their home under a short sale based upon specific reasons, such as job loss, divorce, illness, un-employment and even death.
Many who specialize in short sales understand that giving you this advice once the home is already under a litigation for strict foreclosure, the best option is at this point to speak to an attorney to get the advice you need. It is a process, whereas, if you want to avoid a strict foreclosure situation, you may have to work out what is called a mortgage mediation - of which you will need an attorney for. Outside of that, if you are in fact in foreclosure litigation - it may be too late to entertain what is called a short sale. Seek your answer from a real estate attorney.... more