tax lien sale redemption/mortgage co still hasseling

7 Replies

okay due to bad Atty got a issue.  Place sold unbeknownst to me in tax lien. So I get to redeem . working on that.  But though the mortgage co also allowed sale or ignored it, and now mortgage is null and void  they're threatening me.  

1, do I file paperwork if intent to redeem? 

My bad Atty isn't saying anything. Ignoring me.  I have a year to come up with dough. 

2. Am I supposed to continue to pay the now defunct mortgage? Or are they just going after me for their eventual write off?

3. Am I supposed to set up some kind of escrow or such like account?  

Did I say I had a bad attorney? 

@Yvette Hirsch You need to talk to a Tax Foreclosure attorney. This is not something you want free advice from a forum of investors. Sorry for your current bad attorney situation, but you need an attorney who specializes in tax foreclosures in your state.

thank you . Never even heard of them.   He farted around for eight weeks and I had the tax bill mone y . But he effed around.  They never even posted a sign. I found out by accident.  I'm pissed.  

@Yvette Hirsch

Why were the taxes not paid? If the mortgage company was not handling them, why were you not paying them?  Usually a county waits several years before proceeding with a tax sale.  I assume they mailed you notices? Jerry is correct, you need a real estate attorney and need one Monday.  If you don't know one I would contact the attorney that handled your closing when you bought the house.  You should be able to get this fixed but it will cost you some money.

@Yvette Hirsch ,

If this is a property that you owned and obtained the original mortgage on, then you are still liable for the mortgage payments and it is not defunct.

When you enter a contract for a mortgage, the bank is extending a loan to you personally AND putting a mortgage on the property as collateral.

In your case, the property can no longer be used as collateral, because the mortgage against it was removed during the tax lien sale.  However, the bank can still continue to collect the mortgage from you because you are personally liable for the balance of the mortgage and remaining payments.  This would have sucked if you went past the redemption period because you would be liable for payments on something you no longer owned.

Additionally, the bank can most likely call the note due in full due to all sorts of legal clauses in the original mortgage agreement regarding transfer of title, default in tax payments, etc.  This can mean all sorts of bad things for your credit.  But the one thing they can no longer do is take possession of the property through foreclosure.  What they can do is win a judgement against you and garnish wages, seize other assets, seize IRS refunds and anything else to recover their loan balance (probably plus attorneys fees at that point).

I don't know how your credit is, but you might want to work with the bank on re-establishing the mortgage.

Getting a better attorney to help you with the situation is advised.  I would say sue the old attorney, but that's usually not worth the money or time or aggravation.

This is not legal advice, just advice based upon my understanding of how mortgage notes work.

Good luck on resolving this interesting situation!

i paid off land. Had lower lumbar fusion due to work accident.  Was also taking care of dad with Alzheimer's.  Was paying only on home a double wide. Making payments after suing for cracked foundation, they lied about original cost of home to legal aid Atty.  I couldn't get legal aid Atty to pursue that and get forensic search.  But I couldn't quite keep up with who had the tax bills. They kept changing hands. Finally catch em and sold my show horse to pay bill and this lousy Atty didn't contact and make some deal.   Master commissioner lied in court claiming he posted sign . I live here. I would have seen one. Bank didn't want house didn't buy it. I did ask for them to help but they didn't.  I live n soc sec. I paint portraits and sell dogs and foal out racehorses in winter usually. Which is hard work in -30 below nights in ken****y.   But I do it. So I'm pissed.  They could sue but they can't take my soc sec.   However  what aggravates me more is I had a bad car wreck and am trying to settle that.  ph**uck me eh?  All I want is to just live quiet life.   I think no problem coming up with money cuz govt program helping me. But I doubt they can fix it all.  They will make payments for eighteen months. But why do that if its not mine? They can't take house And I can't take house. If I redeem bill,  that's a little different but then technically tax lien sent their mortgage to trash bin.