Articles on Repo & Foreclosure
I Gave a Friend a Loan and he Used Equity on his Home as Collateral, Now that the Property is Foreclosed What Should I do?
A friend of mine borrowed $10K. The collateral for this loan was the equity in his house, however, his house has been foreclosed on now. I have a legal Loan Document signed by him. Besides a copy of the Loan, what other documents do I need to file at the local court house in order to file a claim to try to get some money back from the sale of the property? Deed of Trust? “Intent to Lien” form? “Intent to Redeem” form? To avoid foreclosure, I took out a second mortgage from a private investor to pay the back payments. I had unforeseen problems which made me fall behind on the second mortgage and slow paying the first. The investor filed for foreclosure so I filed for Chapter 13 protection. The investor who purchased the foreclosure allowed us to stay in the house if we paid him 1200 a month and used his address for the first mortgage payment slips. He evicted us. He has renovated the house and has it on the market and he never paid the first which is still in my name. If you purchase a second mortgage at foreclosure that is for $7000 and the first is still in force at $100000, is the house totally his? What happens when you can’t afford mortgage payments and have to move out of the home? The lien-holder on a vehicle accidentally cleared the title to the car as if it had been paid in full, when it hadn’t. Can they now repossess it? Repossession (also known as “repo”) is when an item sold on time payments, such as a car, is taken back by the lender because the loan payments are in default. Repo laws vary from state to state but by the time a repossession occurs, most repo laws give strong weight to the lender.
