Advice about bankruptcy and foreclosure

[enik]

What is the name of your state? NJ

Hello, I need some help with a very frustrating problem.

My parents have been separated for going on 5 years. My mother left my Father and he doesn’t have the heart to get a divorce hoping she will come back.

My Mother filed for bankruptcy I think 2-3 years ago. The lawyer she went to, put the house My Father and I lived in up for sale March of 2007. SHE DOSEN’T EVEN LIVE THERE!
My father got notices but he’s very old school and stubborn about these types of things. So he just threw them out I guess… I never saw them.

3 people are on the deed My Father, Mother, and Grandmother. I guess the lawyer sent notices to them and the mortgage company that the house was going to be sold cause of bankruptcy. Nobody replied and therefore the house when up for sale by default.

It just so happens that my parents had a “Balloon Mortgage” and it was coming time for them to refinance in April 2007. $120,000 was owed on the house at the time.

So my father being “Old School & Stubborn” stopped paying the mortgage payments.
I guess his plan was wait until the house sells then pay off the house and whatever the bankruptcy debt (a lousy $15,000) all this nonsense is for $15,000. But now the lawyer keeps dropping the price of the house because he wants his $15,000. House was appraised at $300,000. It’s up for sale at $150,000. My father will get no money from it.

So my question is how do I save this house?
Is it too late?
Should I just buy it from the realtor so my father and I have a place to live?

I would like to get the lawyer out of the picture. And hopefully the mortgage company will be generous and refinance with my father.

Any advice is greatly appreciated.

Thank you so much for reading this.

[FlyingRon]

Lets get some simple facts out of the way:

Ignoring things doesn't make them go away.
Not living in a house doesn't give up ownership.
Bankruptcy doesn't wipe out secured debts like mortgages.

If the sale has not happened, to save the house you need to do two things:

1. Get ownership of the house (negotiate, fight, whatever) away from the mother/trusteeship.

2. Get the financing issues resolved (most likely refinancing).

It's a real mess it sounds like, not helped by people ignoring the courts and carpiciously ignornng the mortgage company. At the outset you could have negotiated buying out the share prior to it coming to a forced partition. Dad's credit is getting ruined by his crankiness which is going to make the refi harder.

You're gonna need a lawyer versed in RE issues.

[nextwife]

Absolutely get dad his OWN attorney. NOW! He needs an advocate. And, if you are still a minor, he needs to have a CS order filed asap. so that dad gets whatever he can for your care from mom's share.

If you are an adult, perhaps he can use some of your rent/board costs that you pay him to help pay for an attorney.

[enik]

Thank you very much for your replies and advice.

This is a very frustrating issue, manly because of my father being so hard headed.
He has been to a few lawyers but I don't think they want to deal with him and they never call him back.

I'm an adult and I've been staying / working with friends across the country for the past 6 months. When this all started I was ok with the house being sold and splitting the money with my family. They have dropped it down so much it's not worth it anymore.

With it being a new year and this going on far longer than it should have my thoughts are to move back and get him a lawyer (I'll pay). I'm gonna have to do the talking for him I suppose.
I can get my mom and grandmother to give me their share of the house. They will do anything to help me.

Maybe IF the mortgage company let's my father refinance the lawyer can get his money that way?

Or should I just get a mortgage and buy the house myself? They are selling it for basically what my father owes on it. I have good credit but I don't have enough money for a decent down payment. My father has a good steady job that I wish I could have. I don't really feel I'm all that financially stable yet to have a mortgage.

Want I really want to happen (and please tell me if this is realistic or not) Is my father refinancing for what the house is supposed to be worth (about $300k). The lawyer gets his money, my father has enough to pay off all his debts (credit cards etc.) so he' will only have mortgage payment and utilities. Money left over to invest / fix up the house. I guess that's entirely up to the mortgage company.

Well thank you again for your input.