Although this property was foreclosed by HUD, it is no longer on the market. At present, it is in a PENDING status which means a contract has been accepted. Consequently, unless the contracts falls through, this property is not available.
The property was FOR SALE.
Please let me know if you need a better explanation.... more
If you are getting notices, likely it has already been posted.
Sounds like you have taken appropriate actions/precautions at this point.
I don't want to recommend strategy to you over the internet, but sounds like you are on the right track.
If you're not getting return phone calls, then expect the worst. You may want to contact the bank on the return address to let them know you are in possession of the the home and would like to make your rent payments directly to them if in deed they get possession of the home. If you have a deposit with the owner, chances are it is now gone, so you want to keep that in mind when negotiating with the lender.
It may be beneficial to the lender to continue to lease from you through the end of your term and give you a bonus to leave the house in good condition at the end of the lease.
I am very sorry for the situation and hope you can resolve it to your satisfaction, although it may cause you to move.... more
It sounds like you need legal help. An attorney would be able to advise you of your status and rights.
Foreclosure normally wipes out debts that are junior to the foreclosed note where the property secures the lien. For example, if a property is foreclosed by the second lien-holder, the first lien remains intact and the conveyance is subject to the first mortgage. Say a homeowner's association foreclosed for non-payment. Generally, their claims are subordinated to the first and second liens and so the new owner after foreclosure would be required to pay those off.
When your first mortgage is foreclosed, then mechanics liens, any junior mortgage liens, including a second mortgage lien, are wiped out. Whether the mortgage insurance company has any claim against the borrower for unpaid balances is a separate matter, but the lien itself is gone. There have been many stories about junior lienholders issuing a charge-off against the credit report of the borrower for the unpaid amount, but this is the first time I have heard of someone trying to collect on that charge-off.
It sounds like you need to consult an attorney who specializes in that area to advise you. After all is said and done, you may be forced to file bankruptcy to clear off a debt that persists after foreclosure of the property.
as is mentioned here.... more