Foreclosed For Past Due Maintenance Fees

[Alikkees]

I found out last week that my condo was foreclosed on in an auction for $2000 for past due maintenance fees which had went up to $285 per month(and you should see this place) by a letter in the mail after the fact. NO PRIOR warning. The day after I received the letter the guy that bought my home left a handwritten eviction notice on my door, when I called the number he left he wants me to pay him rent or else. I have already paid the mortgage for this month as well. When I called the mortgage company they had NO knowledge of what I was referring to and said they would get back to me. PLEASE help me with steps to correcting this is if that's possible.

The condo homes I live in are in a lot of trouble themselves, people have been moving weekly, but I can't afford to do so at the time.

I'm a nervous wreck. If you need more info please ask.

Thanks in advance

ANSWER: Foreclosure statutes dealing with the rights of associations varies from state to state so I really need to know what state you are in.

That said, here is some general information.  First, associations can foreclose on a property in most areas of the country for owed money.  However, they must follow all the normal notifications and rules of that state.  From the sound of "no warning" one has to wonder if this foreclosure was done legally.

Second, and again, in most states a first mortgage does not have to worry as an association is almost always a seconday loan.  In other words, if a second forecloses whoever buys at the public sale is now responsible for paying the mortgage.  So I wonder if this person that is trying to evict you(handwritten note?) really doesn't know what they are doing.

Your bank needs to delve into this as they do have a stake in all of this.  In a couple of states an association foreclosure is considered a first losn.  In that case, any other loans are to be notified so they can protect their interests.  Again, I have to wonder if this was done properly/legally.

One thing you might do is go to the HUD site.  In their foreclosure information area you will find links to non-profit counselors who will help at no cost to you.  Just tap into those in your state/area.

www.HUD.gov

Good luck with this.  Sounds like a screwy situation on the whole.

Steele

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The state is Texas and thanks for your help. I'm no expert at this but I knew something was wrong .

ANSWER: In doing some research on Texas I came across a lot of evidence that shady foreclosures by associations have been referred to a "racket" and have been rather wide spread.  There was some protective legislation going forward a year or so ago but not sure how that effects things.

I would really turn to some legal advise on this one.  And track down your local free counseling services through the HUD site.

Good luck on this one and feel free to keep me in the loop.

Steele

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Also, do you know if I have to pay him rent money? and he's asking me to sign a lease and harrassing/threatening me and my family.

I really appreciate you help and I will keep you informed on the outcome. I have put in a request as you suggested for legal aide.

Thank you

[Rogelio]

Again, not an expertin Texas statutes but I don't see how he can make this demand when you are paying the mortgage.  I would point blank tell him that until you have full proof of his full and complete ownership of the property you will not be acting on any of his demands.  Furthermore, that you will file a complaint against him for harassment if he continues to bug you while you are researching your legal options.  Let him know you are talking to an attorney and that if you find that he is acting illegally in any way, shape or form you will be taking action against him.  Drop the dreaded "my attorney" words on him as soon as you can.

One other thing that you could do that is very inexpensive is to join a legal co-op.  It costs about a dollar a day(sround $30 a month) and would give you unlimited access to a top Texas law firm for phone consultations(during business hours) as well as a number of other benefits.  I belong to one here in Minnesota and they are great.  And not just for real estate and foreclosure questions but for anything law related.  

If that is of interest, just email me privately at the email below my name.

In the meantime I am going to pass your situation on to a real estate law forum I belong to and see if they have any thoughts.

All in all, but reasonable in any discussions but be firm that will have to have absolute truth about the situation before doing anything.  And mention that he will probably have to reimburse you for the latest mortgage payments as well :>)

Steele

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