Advice Needed ASAP - Discovered Bidder @ Sheriff Sale Has Renters In My House!~

[mellymel]

What is the name of your state (only U.S. law)? Michigan


To give a lil background on my situation first - here is the story. Back in Feb 2009 we decided to possibly walk away from our home due to the fact we owed much more than we could ever repay due to predatory lending. We opted to first (before ever missing a payment at all on the mtg) file for bankruptcy in order to protect from any deficiencies on the mortgage/lender end after the foreclosure. Since we were fast on the bankruptcy - what ended up happening is our bankruptcy discharge was finalized (May 2009) prior to any sheriff sale being held. Apparently (I know this only now this week) the bank didn't attempt to purchase the home at the sale and a third party purchased the home (valued on the bankruptcy papers at 119,000) for $51,001. We found a home to rent in about May/June 2009 and the sale was completed (we had no knowledge at all of this) June 26,2009. We have not really been going back to the home because we were kind of trying to wait and get info sent in the mail or whatnot as to the status of our foreclosure. This never happened. Recently we were approached by a realtor offering us 5,500.00 to sign over rights to our home (that is still ours and in redemption period). We were confused and interested in this since we had been receiving mailers offering us credit for a 51,001 loan to redeem our property as well. We decided to look up our court ordered county documents and low and behold the home IS still ours and in redemption till' Dec 26,2009!! We were recently told by area relatives that people were "living" in the home...so once we discovered this is still our house...we were shocked. We attempted to contact the third party purchaser to find out why folks were in the home and discovered he is charging them rent in our house that from what I understand he should not even be entering as of yet until redemption is over. Am I wrong? We have gone to the home and the "scammer" has the people convinced that he is right and they all refuse to listen. After some phone calls the police have advised me to go down there and have them escort me to the home with my sheriff's deed in hand to tell them to get out. I am making sure by posting here...this is accurate that this is my home still?? I see no liens or anything in the state records and the third party aka "scammer" is passing out paperwork on my bankruptcy to all the parties involved which is really ticking me off to the extreme. Now, I want to also know since my bankruptcy was discharged and no liens on the home - if I sell the property before the end of my redemption period do I keep the proceeds if any are available? (I assume this is what he is trying to pull under my nose) ;-) One more thing to note - he (the "scammer") took out home owners insurance in my name with his funds to cover the property until the date of the end of redemption...I am lost on what my rights are here...please help!

[FlyingRon]

The rules are different if the property is deemed abandoned which is easy if you weren't there and you didn't respond to the lender during the foreclosure process. Your rights to possession may have been terminated and the redemption period is drastically shortened.

The purchaser and his tenants under no obligation to deal with you. If you have any rights at all, then you'll need to pursue these in court.

Bankruptcies and Foreclosures are public record. You'll find all sorts of people trying to game them for their personal benefit.

What realistic chances do you think you have to secure the funds to redeem the property?

[mellymel]

Well...as far as the redemption period is concerned ...we were back and forth to the home because we were unsure of the situation at hand and when the mortgage company sent the inspection company..they left the note on our door saying "we came to inspect and we noticed your property still here, so we left" - that shows we never abandoned the property. Aside from that I understand that an affidavit of abandonment must be filed and upon that affidavit the redemption period would be cut down to 30 days - this did not happen. I am still able to redeem. So this is a mute point. Aside from that matter - everything I can find doing research says that I can still be living in the home and not have to pay a cent to this person since the sheriff sale is not operative until the date of redemption is over. I can have a friend buy my home and sell it for me...not a problem.

[nextwife]

I'm curious how a VALID transfer by the owner can occur while in the redmption period without having first paid off the existing mortgagors foreclosure judgment and having it released.

[mellymel]

Well, altho I do suspect that some "dealings" went on between the mortgager and the bidder...there will never be proof of that. However I do know that we had a bankruptcy and our debt was discharged before the sheriff sale with no liens placed on our property...basically we can redeem our home for $51,000 - no attachments aside from interest and paid expenses etc...blah blah.... I am not totally sure how it all came to pass but that is what happened and now I stand to reap some benefit of this possible "scam" he had all set up and in place to pocket a wad of cash off this deal. The worst part is that the man doing this is a well known "consumer advocate" on foreclosure scam,etc...just sickens me.

[nextwife]

Originally Posted by mellymel

Well, altho I do suspect that some "dealings" went on between the mortgager and the bidder...there will never be proof of that. However I do know that we had a bankruptcy and our debt was discharged before the sheriff sale with no liens placed on our property...basically we can redeem our home for $51,000 - no attachments aside from interest and paid expenses etc...blah blah.... I am not totally sure how it all came to pass but that is what happened and now I stand to reap some benefit of this possible "scam" he had all set up and in place to pocket a wad of cash off this deal. The worst part is that the man doing this is a well known "consumer advocate" on foreclosure scam,etc...just sickens me.

A secured debt like your mortgage is not actually discharged in the sense that you keep the asset AND owe nothing on the debt. While the lender cannot go after you personally for the deficiency, they can take back the collateral.

[FlyingRon]

You are the mortgagor. The bank is the mortgagee.

[nextwife]

Originally Posted by FlyingRon

You are the mortgagor. The bank is the mortgagee.

Not I! The poster is.

[mellymel]

I understand what you are saying however everything I have researched points to the fact that the sheriff sale is the opportunity to redeem the collateral ?? yes or no? In reality, this matters none - all that matters now is that the sheriff sale (all parties should have had everything in order as far as liens, and fees associated at this point) the property sold to third party at 51,000 and now I have redemption rights to the property. There were no liens filed and that has nothing to do with my rights. The sheriffs deed shows only 51,000 as the redemption price due to the fact the lender DID not purchase the collateral at sale.

As of tmrw, once title is run and verified - no liens,etc. We will be filing for emergency eviction to remove the folks in the home and then deal with the rest of this messed up dilemna ;-(

[mellymel]

Originally Posted by FlyingRon

You are the mortgagor. The bank is the mortgagee.

thank you....my mistake ;-)