Foreclosure questions... "attachments" vs. "executions" on liens & more

[carol00123]

the name of your state? MASS

I outright own a house and am the bank for our "buyers" who we also signed legal documents with and signed the deed over to them. They have accrued liens on the deed, including tax liens from the town for not paying taxes.

They are obviously in breach of our agreement and we started foreclosure process and they are now separated but the wife is filing for Chapter 7/bankruptsy with payback plan. Will we get fully recooped for the money that we have put in, such as we paid off the tax liens (even though still showing on registry of deeds records) from the town since we figured we'd be taking back the house someday. Do you think she has chance of being 'bailed out" by a bank giving her a mortgage with such a bad credit history? Do you think at this point we should pay the next tax bill that is due 11/1?? thanks for the help in advance!!

[pojo2]

Originally Posted by carol00123

They are obviously in breach of our agreement

That may be obvious to you but we don't have the doc to look at. Why would you not consult with an Atty in your area familiar with such matters, so that you might protect your interests?

[seniorjudge]

Originally Posted by carol00123

the name of your state? MASS

I outright own a house and am the bank for our "buyers" who we also signed legal documents with and signed the deed over to them. They have accrued liens on the deed, including tax liens from the town for not paying taxes.

First question is in searching the registry of deeds public records, some of the bank/financial companies have put "attachments" and some have filed "execution" docs... are these one in the same or are the executions payoffs of the attachments???

They are obviously in breach of our agreement and we started foreclosure process and they are now separated but the wife is filing for Chapter 7/bankruptsy with payback plan. Will we get fully recooped for the money that we have put in, such as we paid off the tax liens (even though still showing on registry of deeds records) from the town since we figured we'd be taking back the house someday. Do you think she has chance of being 'bailed out" by a bank giving her a mortgage with such a bad credit history? Do you think at this point we should pay the next tax bill that is due 11/1?? thanks for the help in advance!!

Sounds like y'all have waited too late to protect your interests if someone has filed senior liens to yours.

In any event, hustle on down to a real estate attorney as soon as possible to see if you can salvage anything out of this mess.

[carol00123]

State of MASS.

thank you both for your replies. To explain further, we are the bank and have legal agreements on file. We did write the deed over to them, so the deed has accrued liens on THEIR behalf under their names. We are not subsequently responsible for those liens. We helped them since they had credit problems and could not get financing from a bank, we own the house outright.

They are in breach of our contract since our contract states they were to inform us if any liens were put on the property. They have now not paid us for 12 mos and 2 wks ago filed for bankruptsy.

To confuse matters, they are separated and the wife is in the house and has filed for bankruptsy. We can't imagine any bank giving them a loan (highly unlikely) but possibly a relative could loan her/them the money to keep the house since the house is now worth 3X the value. We have hired a real estate attorney (that we've worked with on last 6 home transactions) and now regret we did not hire an atty who specializes in foreclosures.

NEW QUESTIONS:
Is this normal for this foreclosure procedure to take this long? (11 mos so far), We are awaiting a foreclosure date from the land court.

What does this mean for us that they filed bankruptsy? Their atty requested a payoff amount.

Also, a 3rd party Atty. is holding 5,000 of the escrow money and it was in writing that this atty. is to pay us back the 5,000 plus accrued interest if they breach the agreement, which they did and atty. agrees they did. This atty is awaiting the foreclosure/bankruptsy proceedings before paying us this money, which doesn't seem right either. ??

Also, does anyone know if we will get all the money back that they owe us? We paid $10,000 in back taxes which were liens on the house, the insurance bill (500.) and 12,000 in back mortg. payments. Now there is an outstanding tax bill of 1,000 which our atty tells us to pay (he ultimately thinks we will end up getting the house back)... but my feeling is let it accrue interest since it's only $60 int in 6 mos... and why should we pay it if we will only get a certain percentage back since they have filed Chapter 13..repayment plan. Any opinions here?

We also learned the house was uninsured so we are paying annual ins. bill as well.

T H A N K Y O U FOR ANSWERS IN ADVANCE!!!!!!

[seniorjudge]

In any event, hustle on down to a real estate attorney as soon as possible to see if you can salvage anything out of this mess.

By the way, I have never yet met a banker who couldn't spell "bankruptcy."