Colorado foreclosure and garnishment

[tertlefamily]

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

My husband and I bought an investment property. The property was financed by a private party. There was a first mortgage, with rehab money included and then we added a small second mortgage to help with the costs as well. All money was loaned from the same individual. The second mortgage never got recorded. After being unable to negotiate new terms, we fell behind in payments and the private party went to court and received a judgement which they started collecting on in the form of a garnishment. After that, they went through foreclosure proceedings and we lost the property. Now, the private party owns the property and is collecting money through a garnishment. Do we have any means to an end to the garnishment. We are going through very difficult financial times right now and they are garnishing over $1000 monthly. Is there anything that can be done? I was unaware that they could get a judgement and then foreclose. Any help or advice is much appreciated.

[LindaP777]

Originally Posted by tertlefamily

Is there anything that can be done? I was unaware that they could get a judgement and then foreclose.

I'm curious as to way you thought you could enter into a legal binding real estate contract and renege on it, but still hold/live in the property with no consequences? Did you think nothing would happen? You are being forced to hold up your end of the bargain (at least financially). Time to see a bankruptcy attorney.

[tertlefamily]

I'm not trying to get our of the contract. I don't deny that we owe the money. I'm questioning the fact that they got a judgment on a mortgage and then foreclosed. So, can the just hold the property and we keep paying for forever? If this is possible, shouldn't all mortgage companies go ahead and get a judgment before the foreclose so that they don't "lose" any money? Is what the lienholder did legal? I have tried to google this issue and can't find anything. I would think that getting a judgment on the portion that was non-secured (the deed never got recorded) would be fine, but not the entire amount. I, however, could be completely wrong.

[HomeGuru]

Originally Posted by tertlefamily

I'm not trying to get our of the contract. I don't deny that we owe the money. I'm questioning the fact that they got a judgment on a mortgage and then foreclosed. So, can the just hold the property and we keep paying for forever? If this is possible, shouldn't all mortgage companies go ahead and get a judgment before the foreclose so that they don't "lose" any money? Is what the lienholder did legal? I have tried to google this issue and can't find anything. I would think that getting a judgment on the portion that was non-secured (the deed never got recorded) would be fine, but not the entire amount. I, however, could be completely wrong.

**A: off the top it soulds like it was a non judicial foreclosure. Suffice to say you got a mess.