An 82 year old homeowner with cancer gave BOA the house back after successfully completing trial mod but kicked out of program anyway.

Asked by Lynn Burke, Las Vegas, Las Vegas, NV Tue Jul 23, 2013

She gave house back to bank in Dec 2011 and BOA changed locks and placed no trespassing signs on property. No more HOA payments were made at that point. One and a half years later the HOA's collection agency foreclosed and sold the house. 3 weeks after the sale she received a letter that BOA sold the Note that no longer has a house attached to it to Bank of America Merrill Lynch Trust and are still trying to collect. How can they sell a Note secured by house that was already sold at the HOA's collection agency trustee sale and why didn't the bank complete their own foreclosure when they had almost 2 years of having the house in their control? How long can the bank pursue a deficiency judgement since they failed to pursue their 1st mortgage lein at the HOA trustee sale?

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Ken Douglas, , Las Vegas, NV
Tue Jul 23, 2013
You just gotta love BOA. .... THe wporst bank in the USA.
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Jeff Howard, Agent, Las Vegas, NV
Tue Jul 23, 2013
This HOA question is actually being tested in Nevada courts at the moment. The question becomes when the HOA forecloses, can that wipe out any existing mortgages? Some investors buying at HOA auction are attempting a "quiet title" action. The Nevada Supreme Court has not ruled on this, even though lower courts have ruled both ways and the Nevada Legislature is addressing it so that it will be clear in the future. In any case, at least until the courts allow the lien to be "quieted" the lender can pursue the note subject all of the other laws governing that and they can still foreclose on the property, taking it away from the investor who bought it at the HOA auction. As for why they did not before? Who knows? We just know that they did not and then they did.

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Myra Gouger, Agent, Las Vegas, NV
Tue Jul 23, 2013
This is a question for an attorney. This is no longer areal estate question. All I know is that before the law changed, the bank could pursue a deficiency judgment for up to 7 years. Please refer your client to several different lawyers whom she can speak with and choose the one she likes the best.
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