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Foreclosure Questions & Answers
1 Answer | Asked in Foreclosure, Real Estate Law, Tax Law and Probate for Indiana on
Q: is there a limit on the amount of fee that can be charged to the owner of a tax sale property when claiming the surplus

by a third party/bounty hunter company?

James L. Arrasmith
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answered on Apr 18, 2024

The laws regarding tax sale property surplus funds and the fees that third-party companies can charge for assisting owners in claiming those funds vary by state and jurisdiction. Many states do have limits on the fees that can be charged, but the specifics differ.

For example:

1. In...
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1 Answer | Asked in Contracts, Foreclosure, Real Estate Law and Landlord - Tenant for Illinois on
Q: How to foreclose or evict someone that’s breached contract for deed terms

Failed to fix heat pump, roof is missing a shingle after storm, has tires stacked in yard, window unit has ruined wood siding, built a pallet fence connected to porch, removed spindles from railing to put a board as a ramp for animals without permission, and who knows what inside the house will not... View More

James L. Arrasmith
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answered on Apr 16, 2024

I apologize that you're dealing with a difficult situation with your contract for deed purchaser. However, I want to be very careful about providing advice, as the legal process for addressing breaches and pursuing eviction or foreclosure can be complex and varies by jurisdiction. The best... View More

1 Answer | Asked in Foreclosure for North Carolina on
Q: Foreclosed house, auction set, bank says I can sell before auction. Can the bank force separated wife to sign contract?

We’re separated and both are on loan, she has refused to assist and pay mortgage and without her participation and income help house fell into foreclosure. Auction sale has been set for 60 days out but bank says house can be sold before the auction but separated wife will not agree to sign any... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Apr 2, 2024

Unfortunately, no Bank can force your ex to sign the necessary paperwork for the sale. The time for getting a Judge to do that has passed, and whether or not that was possible depends upon the equitable distribution/separation agreement that you and your ex had in place. I assume that's what... View More

2 Answers | Asked in Foreclosure and Tax Law for North Carolina on
Q: When my mom died in 2016, her home was foreclosed. Can the county charge me with 2016-2023 taxes after foreclosure?

There was no will, no estate per se. Now that county is saying I owe taxes on a home that was foreclosed and sold in 2016.

James L. Arrasmith
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answered on Apr 1, 2024

I'm sorry to hear about the loss of your mother and the difficult situation you're facing with the county regarding taxes on her foreclosed home.

In general, when a property is foreclosed and sold, the new owner becomes responsible for the property taxes from the date of the sale...
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1 Answer | Asked in Foreclosure and Landlord - Tenant for New Jersey on
Q: House is in foreclosure, do I still need to pay rent arrears directly to landlord?

This is just a out of curiousity. I was evicted from my apartment in August 2023. My former landlord and I entered into an agreement that I would pay my rent arrears in monthly payments. This was decided in court with is lawyer through mediation. The house is currently in foreclosure, once he loses... View More

James L. Arrasmith
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answered on Mar 30, 2024

In situations where a property is in foreclosure, the obligations agreed upon in court, such as your agreement to pay rent arrears, typically remain binding. The change in property ownership does not automatically negate your legal responsibility to fulfill the terms of that agreement. Therefore,... View More

2 Answers | Asked in Estate Planning, Foreclosure and Real Estate Law for California on
Q: Where can I find HUD approved language for a Living Trust to protect the lender and the HUD insured Reverse Mortgage?

Where can I find HUD approved language for a Living Trust to protect the lender and the HUD insured Reverse Mortgage? I believe this language is in a sample/template/boilerplate somewhere because the protection will be the virtually the same in every case. I would like to draft my Living Trust... View More

James L. Arrasmith
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answered on Mar 29, 2024

Finding HUD approved language for incorporating into a Living Trust, especially to protect both the lender and the HUD insured Reverse Mortgage, can be a focused task. Generally, such language is detailed in HUD's guidelines or provided by legal resources familiar with real estate and elder... View More

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2 Answers | Asked in Estate Planning, Foreclosure and Real Estate Law for California on
Q: Where can I find HUD approved language for a Living Trust to protect the lender and the HUD insured Reverse Mortgage?

Where can I find HUD approved language for a Living Trust to protect the lender and the HUD insured Reverse Mortgage? I believe this language is in a sample/template/boilerplate somewhere because the protection will be the virtually the same in every case. I would like to draft my Living Trust... View More

Julie King
Julie King
answered on Mar 29, 2024

Please allow me to address your comment that you want to draft your own trust. I regularly tell clients that there are several legal documents that a template would work for, assuming the template is based on the correct state's law. But estate planning is unfortunately not one of those areas... View More

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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

W. J. Winterstein Jr.
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W. J. Winterstein Jr.
answered on Mar 27, 2024

The Bankruptcy Code provides an automatic stay against proceeding against the debtor/bankrupt and his property (very broadly defined by section 541 of the Code). And Chapter 13 provides a "codebtor stay", which would protect a non-filing spouse.

I'm in PA, and my practice...
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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

James L. Arrasmith
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answered on Mar 27, 2024

In California, when facing a foreclosure signaled by a Trust Deed Sale, either spouse filing for bankruptcy can momentarily halt the sale due to the automatic stay provision. This provision immediately stops most creditors from proceeding with collection activities, including foreclosure. However,... View More

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4 Answers | Asked in Bankruptcy and Foreclosure for California on
Q: Does only one person (husband or wife) have to file bankruptcy to stop Trust Deed Sale?

If our client wanted to stop a foreclosure on a property, and the note holders are husband and wife, do both husband and wife need to file bankruptcy to stop the Trust Deed Sale or can only one of them file?

Luis Manuel Paredes Jr
Luis Manuel Paredes Jr
answered on Mar 29, 2024

Either the husband or wife may file a bankruptcy petition to stop a deed of trust sale when husband and wife are both note holders for the mortgage, so long as the filing spouse qualifies for the bankruptcy protection through the automatic stay provided by the bankruptcy code under 11 U.S. Code §... View More

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1 Answer | Asked in Foreclosure for California on
Q: When a servicer fails to abide by the CA Homeowner's Bill of Rights, when must a wrongful foreclosure claim be filed?

The servicer failed to comply with the Bill of Rights, including serving the mortgagor with an NOD and providing the opportunity to bring the account current, based on the portion owed. The mortgagor's application was under consideration for a government relief program. The Trustee sold the... View More

James L. Arrasmith
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answered on Mar 22, 2024

In your situation, where the servicer failed to comply with California's Homeowner Bill of Rights, particularly regarding the Notice of Default (NOD) and the opportunity to cure the default, you may have grounds for legal recourse. The California Homeowner Bill of Rights requires that your... View More

Q: Can I sue my family if they were the one's responsible for the foreclosure and the medical debt, and the falsified doc.

The Power of Attorney they made me sign in another place they made me go, and it was Mexico, and they said it was for the ability to rent my house out, so I wouldn't lose it. And they used it to run their business, and they put ownership in their names, and in their trust, and they didn't... View More

James L. Arrasmith
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answered on Mar 21, 2024

Under California law, you may have grounds to sue if your family used a Power of Attorney to defraud you, resulting in foreclosure and medical debt due to their actions. Misuse of a Power of Attorney, especially to falsify documents or to alter property ownership without consent, is a serious... View More

2 Answers | Asked in Divorce, Foreclosure, Real Estate Law and Family Law for California on
Q: I own a home with my ex husband. The home is my primary residence. He is getting sued, can my home be taken from me?
James L. Arrasmith
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answered on Mar 20, 2024

Under California law, when one co-owner of a property is sued, the implications for the property largely depend on how the property is titled and the nature of the debt. If your home is held as "tenants in common," a creditor may attempt to place a lien on or force the sale of the... View More

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2 Answers | Asked in Bankruptcy and Foreclosure for Texas on
Q: I need to know how to stop a writ of possession that hasn't been served
John Michael Frick
John Michael Frick
answered on Mar 19, 2024

A writ of possession may be stayed by timely appealing the case to the county court or by filing a supersedeas bond within ten days from the date of judgment in the county court.

Once a judgment for eviction has been granted, even filing bankruptcy will not stop a writ of possession from...
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2 Answers | Asked in Bankruptcy and Foreclosure for Texas on
Q: I need to know how to stop a writ of possession that hasn't been served
James L. Arrasmith
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answered on Mar 19, 2024

If you're facing a writ of possession that hasn't yet been served, it's crucial to act quickly. First, you should review the details of the eviction notice or court decision leading to the writ. Understanding the basis of the action can help you identify any possible errors or... View More

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1 Answer | Asked in Foreclosure for California on
Q: I hear mental illness protects your home. Does it protect it from a quck foreclosure more than 10 years ago,
James L. Arrasmith
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answered on Mar 17, 2024

In California, having a mental illness does not automatically protect your home from foreclosure. However, if mental illness significantly impairs your ability to manage your finances or understand the foreclosure process, there may be legal protections and resources available. These protections... View More

1 Answer | Asked in Foreclosure and Landlord - Tenant for California on
Q: OK so Me and my boyfriend moved in a house about 6 months ago we were on a fixed lease we'll the house got foreclosed up
James L. Arrasmith
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answered on Mar 4, 2024

In California, if you're living in a rental property that gets foreclosed upon, the Protecting Tenants at Foreclosure Act provides you with certain rights. First and foremost, if you have a fixed-term lease, the new owner must honor the lease unless they plan to occupy the property as their... View More

1 Answer | Asked in Foreclosure for Florida on
Q: Hello My deceased mom home in the state of Florida was sold at foreclosure proceedings and she owned 50% interest.

Me and my siblings would like to know the steps to take to obtain the funds. Thank You!

T. Augustus Claus
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answered on Mar 1, 2024

In Florida, if your deceased mother's home was sold at foreclosure and she owned a 50% interest, you and your siblings need to follow several steps to claim any surplus funds from the sale. First, you should contact the clerk of the court in the county where the foreclosure sale occurred to... View More

1 Answer | Asked in Foreclosure, Real Estate Law and Small Claims for California on
Q: How do you rid of a mechanical lein on your home?

My mom is about to get a mechanical lein placed on her home mid March. She hired a company to clean and insulate the attic valued at 7200.00. She did not sign a contract. I her son signed an agreement in good faith. So far they don't want to work with us. They want either two installments or... View More

James L. Arrasmith
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answered on Feb 28, 2024

Under California law, a mechanic's lien is a security interest in the title to property for the benefit of those who have supplied labor or materials that improve the property. If a mechanic's lien is placed on your mother's home, it's crucial to address it promptly to avoid... View More

1 Answer | Asked in Contracts, Foreclosure and Estate Planning for California on
Q: How do I get rid of a mechanical lein placed on a home owned by my mom's trust?

My mom needed work done in her attic. A company called Attic Project took on the work knowing very well we didn't have the money stating my mom can pay them back later. I her son signed an agreement. My mom owes them 7200.00 now they want to place a mechanical lein on her home by middle of... View More

James L. Arrasmith
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answered on Feb 28, 2024

Under California law, dealing with a mechanic's lien on a property requires prompt and careful action. If a lien has been placed on your mom's home due to unpaid debts for work done, the first step is to review the agreement you signed with Attic Project. It's important to understand... View More

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