Foreclosure summons on elderly couple

[mba761]

What is the name of your state (only U.S. law)? FL
An elderly couple was just served foreclosure papers by an "owner financed" piece of property. They can not afford an attorney. They had two mortgages on two different pieces of property. The first Mtg (Primary residence - Property A) is current (they pay $300/mo, which was all they could afford). The 2nd Mortgage (unoccupied additional residence - Property B) didn't have any payments required until Jan 1, when they were going to be charged at 18% interest rate and several thousand dollars/mo, which exceeds their income! Property B was up for sale and was to be used as collateral for the downpayment on Property A. If property B didn't sell, the mortgage co (owner fiannced) would take Property B and they would remain at their primary residence, Property A paying $300/mo. Unfortunately this was all in a verbal agreement. In looking at the mortgage documents, the property was cross collateralized and now both properties are being forclosed on. (Mortgage company would get double the value!) They were unaware of the cross collateral and did not sign the addendum with legal description. This was changed without their knowledge. If property B didn't sell, the Mortgage co (owner financed) was to take property B. They have copies of documents provided before closing and it was not cross collateralized, the interest rate was not 18% and the only 1 property was at risk if property B didn't close. However, what was recorded (and unsigned) was entirely different. Also, the legal descriptions on both properties are entirely wrong.

How should they respond to the foreclosure summons?
Disagree because
1. Collateral documents inaccurate and unsigned
2. Legal descriptions wrong
3. Predatory lending practices?

Any advice would be helpful. Unfortunately, hiring an attorney is not an option. They are elderly, no money, retired military income only.

[tranquility]

If hiring an attorney is not an option, then they have no options. None of the arguments you want to make are do it yourself. They are complex and require research, knowledge and skill. This is an ugly situation with many complexities and I am uncertain they would win even with an attorney. Without one, I see no hope.

Sorry.

[mba761]

It's sad that there are no options. They attempted to hire an attorney, but no one will take it without thousands of dollars down, which they do not have. He's a retired military man who is suffering from cancer and he can't realistically choose between treatments and an attorney. They've tried legal aid, but seem to be getting the run-around, but they're still trying. Time is of the essence and it appears that legal aid is overwhelmed and can't respond in a timely manner. I'm not sure what kind of quality they'd get there either. Finding an attorney on a contingency basis doesn't seem to be an option either.

If anyone has ANY other suggestions...they're greatly appreciated. ANYTHING!

[HomeGuru]

Originally Posted by mba761

It's sad that there are no options. They attempted to hire an attorney, but no one will take it without thousands of dollars down, which they do not have. He's a retired military man who is suffering from cancer and he can't realistically choose between treatments and an attorney. They've tried legal aid, but seem to be getting the run-around, but they're still trying. Time is of the essence and it appears that legal aid is overwhelmed and can't respond in a timely manner. I'm not sure what kind of quality they'd get there either. Finding an attorney on a contingency basis doesn't seem to be an option either.

If anyone has ANY other suggestions...they're greatly appreciated. ANYTHING!

**A: I suggest they sell one or both properties this month .

[mba761]

Both properties have been up for sale for months and dramatically reduced for quick sale. It's a tough market, no buyers!

[HomeGuru]

Originally Posted by mba761

Both properties have been up for sale for months and dramatically reduced for quick sale. It's a tough market, no buyers!

**A: ok, then that's the best they can do.

[nextwife]

Originally Posted by mba761

It's sad that there are no options. They attempted to hire an attorney, but no one will take it without thousands of dollars down, which they do not have. He's a retired military man who is suffering from cancer and he can't realistically choose between treatments and an attorney. They've tried legal aid, but seem to be getting the run-around, but they're still trying. Time is of the essence and it appears that legal aid is overwhelmed and can't respond in a timely manner. I'm not sure what kind of quality they'd get there either. Finding an attorney on a contingency basis doesn't seem to be an option either.

If anyone has ANY other suggestions...they're greatly appreciated. ANYTHING!

Is she working?

[mba761]

Unfortunately No. She does not work. She cares for her husband who is ill with cancer. She does get a small amount of SSI income though.

I learned something new today. Property A is not delinquent and has never been delinquent. Property B had a balloon note and they can't make the payment. The expected the Mtg Co (owner financed) to just take property B. However, there is a cross collateral clause on Property B that says if they are ever delinquent on any loan, they will accellerate all Loans. So, since property A isn't delinquent, they're asking for the total due on that loan too.

They've tried to refi several times. Can't seem to find anyone to refi for them. Low income, several delinquencies due to the recent health problems. No real assets to speak of.

Thought about suggesting bankruptcy, not sure if that would really help in the foreclosure situation.

Just doesn't seem right....they're not delinquent on Property A, but they're going to lose their home anyway.