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    Pasquale444's Avatar
    Pasquale444 Posts: 1, Reputation: 1
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    #1

    Aug 11, 2009, 10:08 PM
    Foreclosure and Real Estate
    Hello,

    Lets say you own property. You owe the bank 250,000 and the property is worth 100,000.00. You have gone to the lender and they were of no help. You want to walk away from the property and cut your losses. You find a company that buys encumbered property and assumes your note with the lender. Now here's the catch, the lender has not agreed to this and finds out after the property has been transferred over to the company that has purchased your property. You receive a Hud statement, real estate contract, the loan assumption agreement between the company that has purchased your property and the borrower, it all gets recorded. What will be the lenders course of action once he finds out the property has been sold without their consent? What are the ramifications. Will the lender forclose on the property, what is the common practice taken by lenders. Will the original holder of the note get sued. Thanks for the help.

    Pasquale
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Aug 12, 2009, 07:37 AM
    Quote Originally Posted by Pasquale444 View Post
    Hello,

    Lets say you own property. You owe the bank 250,000 and the property is worth 100,000.00. You have gone to the lender and they were of no help. You want to walk away from the property and cut your losses. You find a company that buys encumbered property and assumes your note with the lender. Now heres the catch, the lender has not agreed to this and finds out after the property has been transferred over to the company that has purchased your property. You receive a Hud statement, real estate contract, the loan assumption agreement between the company that has purchased your property and the borrower, it all gets recorded. What will be the lenders course of action once he finds out the property has been sold without their consent? What are the ramifications. Will the lender forclose on the property, what is the common practice taken by lenders. Will the original holder of the note get sued. Thanks for the help.

    Pasquale
    The lender (bank) can possibly declare the note due and payable and foreclose. You could be liable for the deficiency (if the mortgage allows a deficiency).

    That's what "could" happen. Sorry, but I can't tell you what will happen.
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