Q: I was laid off a year ago and entered into a forebearance program with my lender. I went into foreclosure
I found an “investor” who was to pay overage on mortgage and take over mortgage payments so I signed paperwork. The investor filed a TRO based on my info to delay the auction date of Dec 5th. The overage has not been caught up and will not be until I am out of the house. The loan is non transferable The house needs repairs and updates before it can be sold. I am concerned that if I leave the house the note won’t be paid and I’ll lose the property, all of my rights and have a strong possibility of retaining a large debt to the lender. There are too many scams. I have absolutely no idea who to trust nor where to turn. I need guidance please. I’m not sure what my rights are at this point.
A: You may have sold your house already. The investor does not want to catch the loan up while you are still in the house because you may then decide not to leave. One of the problems with this type of deal is you will remain responsible for the mortgage until the investor sells the house and pays off the lender or refinances it. If the investor holds the property as an investment you could remain on the mortgage for years. If the loan is paid late it will hit your credit. If the property is foreclosed again you will take another hit. You need to contact a local bankruptcy attorney and schedule a consultation. You can search for an attorney using the Justia "Find a Lawyer" link at the top of this page.
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