defective foreclosure

[marchapril]

What is the name of your state? georgia

My mortgage company approved me for a shortsale. I was told to find a buyer. After 3 1/2 months I found a buyer. When I informed my mortgage company they said I was too late. They foreclosed on my property 2 weeks ago. I was never informed. Is this legal? If not, what do I do?

[FlyingRon]

Approval for a short sale just indicates that the lender will consider it. However, they're not likely to stop the foreclosure proceedings until you have shown them a contract on the property. They're free to reject anything other than payment in full anyhow.

They've notified you of the default obviously (or you wouldn't have been negotiating the short sale). That's all the notice you need. The sale will be advertised in the paper. If the sale hasn't happened, you still can redeem it by paying off in full, but otherwise you're out of luck.

[marchapril]

Thank you for responding to my question. No, I was not default on my mortgage payment when I asked the bank to approve the Short Sale. I sent a hardship letter with my last payment stating that I will not be able to make any more payments. Based on that letter and other paper work that was required, I received a verbal approval from the bank that I was accepted for a Short Sale. I have nothing in writing from the bank requesting my signature (or just even notifying me) about the Short Sale or the Foreclosure. Is this legal? Can I get this foreclosure removed from my Credit Report? Can I sue for damages?

[seniorjudge]

Why did the bank foreclose on you if you were not in default?

[marchapril]

They previously told me to find a buyer for the Short Sale. I posted ads in the paper and put up signs. When I found a buyer, I called the the mortgage company and the guy said to me "Oh, you're too late. We foreclosed on your house 2 weeks ago." He laughed when I told him that I wasn't notified about the foreclosure. He then said, "If you want the house back, you have to contact our legal department". This is unprofessional and from what I understand illegal.

[seniorjudge]

Originally Posted by marchapril

They previously told me to find a buyer for the Short Sale. I posted ads in the paper and put up signs. When I found a buyer, I called the the mortgage company and the guy said to me "Oh, you're too late. We foreclosed on your house 2 weeks ago." He laughed when I told him that I wasn't notified about the foreclosure. He then said, "If you want the house back, you have to contact our legal department". This is unprofessional and from what I understand illegal.

Answer this question:

Why did the bank foreclose on you if you were not in default?

[lcannister]

Okay, again WHY did the bank foreclose if you were not behind one single payment?

He then said, "If you want the house back, you have to contact our legal department". This is unprofessional and from what I understand illegal.

What is illegal about this statement?

After 3 1/2 months I found a buyer. When I informed my mortgage company they said I was too late. They foreclosed on my property 2 weeks ago. I was never informed. Is this legal? If not, what do I do?

Are you saying you made no payments in that 3.5 months and did you have any contact with the bank and let them know how you were progressing? Did you expect the bank to wait forever without receiving a payment? You had not sold the house and they foreclosed nothing illegal or unprofessional about that. Did you get any late payment notices in this time period?

Foreclose in this instance may have been used to mean it had been turned over to an Atty to start the procedure.

[marchapril]

Originally when the short sale was approved I was not in default. I was told by the mortgage company that they will consider the short sale request when I missed one payment. They never sent any late notices because they knew ahead of time that I was not able or going to make any more payments. The short sale was immediately approved. No notices were sent concerning a foreclosure. In my state a foreclosure is not finalized unless certain legalities are done. One is to send out a certified notice of the foreclosure attempt and another step is to list this foreclosure in the public newspaper. Both of these were not done by the mortgage company. I never signed any papers concerning the short sale or the foreclosure. Therefore, I was informed that I can sue the Bank and they must pay a large fine for this defective foreclosure.

[lcannister]

Has foreclosure been commenced or completed? I am not sure you know what is happening and what you have been told or sent are statements that they are foreclosing on you.

Everything about this seems to be verbal which does not mean diddly in these matters.

Have you been sent notice to move out, the property is up for sell etc?

Therefore, I was informed that I can sue the Bank and they must pay a large fine for this defective foreclosure.

I am not even sure that you know what the bank has or has not done or even if the bank has yet followed up on the foreclosure of the property. Is this phone call the only contact you have had concerning a foreclosure?

[marchapril]

Yes, the only contact that I have had with the bank was verbal. To confirm what I was told, I checked my credit report and the foreclosure was on there.