How can I recover money from someone defaulting on my mortgage?

Question

Help! My mom is now responsible for a trashed homeshe now owns, a mortgage that is 4 months behind, She gave a couple a chance by doing a wrap loan meaning they were responsible for paying the mortgage via the Title Company. She recieved notice today that the house was on Trustee Sale for Oct 15th. I went to the home and found it had been abandoned since April. She is now responsible for the amount of the loan and 5K PAST DUE. pLUS THE CLEAN UP AND REPAIR. I have video tape the trash and vermon and damage which is going to be about 10K. I am in AZ. Any one help me...How do I sue these people when I don't even know where they are??? She is senior and have no way of catching up or doing repairs, but I am trying is cleaning and trying to make it look better. Anyone help me or suggestions..I already contacted an investment company and they wont go 90K which is owed.

Answer 1

There is nothing more that I can say that is not covered.   Your mother took this risk and it did not work out.   She is not likely to recover funds from it.

No, the bank can not touch her social security.   They can get a bill set up and into collections so that they can collect the rest of their money from her estate.    Since she owes them 90k they might go after other assets now, but most likely just wait this out.

Answer 2

Most in the same situation are renting until they build their credit back up and get past the situation, on a foreclosure you need to be at least 3 years past it with payments made to all tradelines of credit on time during those 3 yrs............it is obtaining a new " mortgage loan" that would be considered fraudulent.

You can hire an attorney...National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys or try a non profit to help with the modification like HOPE at 1-888-995-HOPE.

If you are going through the modification process with Chase, they are modifying most of their loans as long as you can show that you can afford the modification going forward........

Answer 3

As posted above consult a lawyer but it sounds like the people are not collectible if so your mom can sue and get a judgment but highly doubtful she will ever collect on those monies unless the people inherit in the future

this all assumes you can find them to sue them

Answer 4

Sad to say, your dear mother made a huge error in doing what she did.  She acted like a bank when she did the 'wrap around', and now her options are those very similar to what a bank has in foreclosure.

She can, of course, sue those nasty people, but that would appear to be like trying to get blood out of a turnip.  My guess is that they have nothing, and that Mother will end up with a judgment upon which she cannot collect.

Sad to say, your Mother's best option may be to allow her lender to foreclose on the property and take it off her hands.  It appears that she is already seriously 'upside down' with this mortgage and property, and simply has no way of rectifying that at her age.

Best of luck to you and your mother.

Answer 5

see a lawyer. this is way too complicated for yahoo answers.

it probably isn't worth it to try to recover the $ from her bad tenants. they're gone. a lawyer should be able to tell you your options and make suggestions for salvaging the property and protecting it from a trustee sale. You don't have a moment to lose--October is just around the corner. best of luck to you and your mom.

p.s.- read the documents your mother signed. Then, you will know what recourse the lender has in a default situation.