Interesting read. How many people will try this?
She's a deadbeat and is now a criminal and should be in jail. This is just like the escrow law landlords are pushing for in MA. If she could show the banks that she has been escrowing some money towards her mortgage that is a different story. Her lawyer is getting rich off of her instead and trying to loophole/technicality her way into a free house. I hope she ends up on the street. (Am I being too harsh?)
I agree @Rob Beland . I've know several people in my neighborhood that have stopped paying their mortgage, moved, and collecting rent payments until they get foreclosed upon. Makes me sick.
The lien on the house still exists. It's just now unenforceable through foreclosure. If she 'sells' the house, the lien will still be on the property and will have to be settled before a new title policy can be issued. Though there is a way around that too, which is to wrap the property up into a trust and sell the beneficial interest in the trust.
There always seems to be someone wanting something for nothing. It appears there is no final case supporting their argument. I have never heard of a case like this happening in my state.
Not going to happen. This became a popular theory here in Fl a few years ago, not surprisingly heavily promoted by foreclosure defense attorneys drumming up more clients. Most work on the $400/$500/mo. plan, until it's over. You know, when the "show me the note" and the MERS "infractions" defenses were shot down. Many investors jumped on the band wagon too, throwing away a ton of money. I looked at it, sat down with a couple of top foreclosure defense attorneys, and decided it was a fool's errand. The 5th DCA finally ruled on this last year, and also sent it to the state Supreme Court for a once and for all ruling. Many people still holding out hope against all hope though.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!