Mortgage foreclosure voluntarily dismissed with prejudice by the plantiff??

Question

I purchased a new home in August '05. We put our "old home" up for sale that same month. The real estate market soon went south and we could not sell the other home. We rented it, they trashed it to the tune of $4,000. We put it back up for sale with no takers once again. We finally had to make the decision to let the bank take it since we could no longer afford two payments. They filed for new foreclosure over five months ago. About three months ago they filed for a default judgment. Then today in the mail I received a letter from the court saying the case was dismissed voluntarily by the plantiff with prejudice. From what I have read online it means they cannot foreclose. We are going to speak with a lawyer this week, until then can someone explain why they would do this and what all it means?

Thank you in advance.

Answer 1

There are actually companies that will work with you for free to buy your mortagage away from your mortgage company and avoid your foreclosure. I would advise looking into this first. Tryhttp://www.speedyrealestate.info.

Goodluck!

Answer 2

I'm not sure, but is this an IndyMac loan.  If it is, then I wonder if this isn't because IndyMac was taken over by the FDIC.  Maybe the FDIC isn't able (or bothering) to go forward with this.  I suspect you will still get foreclosed on eventually by whoever takes over this loan but IndyMac's problems may have put the foreclosure back by some months.  

Another thought is (this one is a real long shot but anyhow) I have heard of rare instances where the bank refused to foreclose because a property had an environmental problem on it (they didn't want the millions in liability so they just wrote off the loan).  I know this is not the case here but maybe if the place is worth nothing, or almost nothing, they are doing the same thing - just letting it go.

Beyond those thoughts maybe the foreclosing bank just dropped the ball and didn't file something that they needed to within some time frame (they are really busy right now).