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11-07-2008, 08:14 PM
| | Junior Member | | Join Date: Nov 2008
Posts: 1
| |  Old FHA loan - foreclosure -fees
What is the name of your state (only U.S. law)? New York
Purchased home in 8/87 w/FHA loan in Rochester, NY. Sold w/loan assumed in 7/95. Discovered in 2000 that we were still on the deed. Requested release from deed through current holder, HSBC Bank and was released. Filed w/county clerk. Now (3rd or 4th) owner/borrower has defaulted and is being foreclosed by HSBC. We were served as co-respondents, with HSBC asking the court to rescind our previous release from the mortgage. We now have legal fees. Can we sue HSBC to recover these fees? It is our belief that their action disregards the previous release (by HSBC!) and is frivolous. Estimated fees are $500-$2500.
Last edited by legaleagle15; 11-08-2008 at 01:59 AM.
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11-08-2008, 12:35 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 71,453
| | Quote:
Originally Posted by legaleagle15  What is the name of your state (only U.S. law)? New York
Purchased home in 8/87 w/FHA loan in Rochester, NY. Sold w/loan assumed in 7/95. Discovered in 2000 that we were still on the deed. Requested release from deed through current holder, HSBC Bank and was released. Filed w/county clerk. Now (3rd or 4th) owner/borrower has defaulted and is being foreclosed by HSBC. We were served as co-respondents, with HSBC asking the court to rescind our previous release from the mortgage. We now have legal fees. Can we sue HSBC to recover these fees? It is our belief that their action disregards the previous release (by HSBC!) and is frivolous. Estimated fees are $500-$2500. | **A: time to get an attorney. |
11-08-2008, 01:08 PM
| | Senior Member | | Join Date: Feb 2007
Posts: 5,487
| | | You betcha. How is it that you were still on the deed? Something is amiss here and HSBC isn't frivolous, they believe that the assumption wasn't vaild as it appears you really didn't sell the property.
There's more to this than meets the eye. You're going to need a lawyer. |
11-08-2008, 01:48 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 5,012
| | | I'll bet money HBSC is not filing a frivolous lawsuit, which is the usual territory of a pro per. If they're suing you, you have a problem and need to see an attorney.
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11-10-2008, 08:30 AM
| | Member | | Join Date: Feb 2002
Posts: 446
| | | Sounds like you did a simple assumption originally. To get a release of liability, the new borrower has to be income and credit qualified by the lender. HUD Form 92210. If this process was not followed, then only a simple assumption took place and you are still on the Note and Mortgage. | |
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