4 ms·

> In the end, we sold the house, How did the bank lien from the mortgage get handled in the sale?

kevmo 8y ago
I am also interested in hearing about this. I guess they guaranteed good title, but kept money (earning enough interest?) in case the bank comes knocking?
- iteriteratedone 8y ago
  Hes a rich fuck ... sold it to a relative. California is a shithole
- redleggedfrog 8y ago
  Yes, I just talked to the person who I owned it with, and this is their recollection. We could transfer the title, but we were on the hook for the the mortgage. I'm pretty sure there wasn't a lien on the property. Pretty funny you mentioned the interest. In the 11 years it's been like $50.00, since I keep it in just a regular account (instead of CDs or whatever).
  - MertsA 8y ago
    >I'm pretty sure there wasn't a lien on the property Which country was this in? Banks don't typically hand people hundreds of thousands of dollars without making sure that they'll get their pound of flesh when things go south. Not having any kind of collateral is a pretty big mistake on the bank's side.
  - kevmo 8y ago
    If a bank sues you, they will be making claims for various damages. One of those damages will probably be projected interest they would have made from re-lending the money that wasn't being paid. The debt could also be subject to a state of limitations, and you could potentially be clear. If its been 11 years, I would ask a lawyer about it. You may be able to safely use the money you've left set aside.
redleggedfrog 8y ago
Holy crap, that blew up. Sorry, I posted this over morning espresso and then went to work and didn't look again until now. jpmattia, I'm just replying to your post, but it really applies to all the replies. I'll be 100% honest here, and I don't know the finest of the details. I worked through a local realtor I've used for everything I've ever done, a local financial advisor, and my lawyer. User user5994461 is expressing the same fear I had in that I was afraid of doing something illegal. I've always kept a chunk of cash on hand equal to what I would owe just in case someone came after me. At some point the service provider got confusing. I actually paid two different providers in one month in a panic about missing a payment. You cannot believe the paperwork I got. One of them was like "Uh, we don't know what to do with this," and the other took the money, but then that's when the issue of who owned the loan came up. So as we were starting to sort out actually who to pay, and who actually was getting the money, that's when I stopped paying. At the time it didn't seem so much like stopping payment but instead of just not paying until we sorted it out. The actual sale of the house was to a Korean family who wanted to house for their children who were going to go to college in our town. The realtor handled the sale, the lawyer checked everything out, and the only loose end was I accidentally left the gas in my name and bought the students a years worth of gas ($1000). I do know that after they sale we were still trying to resolve what I owed and to who on the original mortgage. I guess technically that is still going on. My subject take away from this was, "this is an avalanche of paperwork." We wanted to sell the house. Under the circumstance, we did whatever it took to sell it even if we didn't know who I owed the money to. Also, up until this event, I didn't have a lawyer, or a realtor, or a financial advisor. When there is six figures, it's a big boys game, and you pay to play. Edit for typo.
- windows_tips 8y ago
  So no one contacted you again after you stopped paying? It seems like one of the mortgage owners probably removed the lien when they sold the mortgage and the buyer never put their own lien on.
  - redleggedfrog 8y ago
    No, I have yet to be contacted (or my lawyer, either). I don't know the machinations involved with mortgages, but it seems to me like I'd like that to have been the case.
aqme28 8y ago
IIRC liens can stick to the property in some cases, rather than the owner. The purchaser would see that there is a lien and it would discount the price of the house.

I am also interested in hearing about this. I guess they guaranteed good title, but kept money (earning enough interest?) in case the bank comes knocking?

iteriteratedone 8y ago
Hes a rich fuck ... sold it to a relative. California is a shithole
redleggedfrog 8y ago
Yes, I just talked to the person who I owned it with, and this is their recollection. We could transfer the title, but we were on the hook for the the mortgage. I'm pretty sure there wasn't a lien on the property. Pretty funny you mentioned the interest. In the 11 years it's been like $50.00, since I keep it in just a regular account (instead of CDs or whatever).
- MertsA 8y ago
  >I'm pretty sure there wasn't a lien on the property Which country was this in? Banks don't typically hand people hundreds of thousands of dollars without making sure that they'll get their pound of flesh when things go south. Not having any kind of collateral is a pretty big mistake on the bank's side.
- kevmo 8y ago
  If a bank sues you, they will be making claims for various damages. One of those damages will probably be projected interest they would have made from re-lending the money that wasn't being paid. The debt could also be subject to a state of limitations, and you could potentially be clear. If its been 11 years, I would ask a lawyer about it. You may be able to safely use the money you've left set aside.

redleggedfrog 8y ago

Holy crap, that blew up. Sorry, I posted this over morning espresso and then went to work and didn't look again until now. jpmattia, I'm just replying to your post, but it really applies to all the replies. I'll be 100% honest here, and I don't know the finest of the details. I worked through a local realtor I've used for everything I've ever done, a local financial advisor, and my lawyer. User user5994461 is expressing the same fear I had in that I was afraid of doing something illegal. I've always kept a chunk of cash on hand equal to what I would owe just in case someone came after me. At some point the service provider got confusing. I actually paid two different providers in one month in a panic about missing a payment. You cannot believe the paperwork I got. One of them was like "Uh, we don't know what to do with this," and the other took the money, but then that's when the issue of who owned the loan came up. So as we were starting to sort out actually who to pay, and who actually was getting the money, that's when I stopped paying. At the time it didn't seem so much like stopping payment but instead of just not paying until we sorted it out. The actual sale of the house was to a Korean family who wanted to house for their children who were going to go to college in our town. The realtor handled the sale, the lawyer checked everything out, and the only loose end was I accidentally left the gas in my name and bought the students a years worth of gas ($1000). I do know that after they sale we were still trying to resolve what I owed and to who on the original mortgage. I guess technically that is still going on. My subject take away from this was, "this is an avalanche of paperwork." We wanted to sell the house. Under the circumstance, we did whatever it took to sell it even if we didn't know who I owed the money to. Also, up until this event, I didn't have a lawyer, or a realtor, or a financial advisor. When there is six figures, it's a big boys game, and you pay to play. Edit for typo.

windows_tips 8y ago
So no one contacted you again after you stopped paying? It seems like one of the mortgage owners probably removed the lien when they sold the mortgage and the buyer never put their own lien on.
- redleggedfrog 8y ago
  No, I have yet to be contacted (or my lawyer, either). I don't know the machinations involved with mortgages, but it seems to me like I'd like that to have been the case.

aqme28 8y ago

IIRC liens can stick to the property in some cases, rather than the owner. The purchaser would see that there is a lien and it would discount the price of the house.