Sold Home - Mortgage Still in my Name!

[Rodj44137]

What is the name of your state? Ohio.

In Oct of 2003 in order to try and get my finances back on track and avoid bankruptcy, I sold my home to a company that specializes in buying homes for fast cash. At the time, I was about 2-3 months behind in my mortgage payments.

The city the home was located in has an ordinance that requires a home inspection prior to selling. The home had a few minor problems, but I didn't have the money to repair them. The buying company said they would take care of the city's inspection.

Although I had to take a loss on the home, I had to do something fast and took their offer. They even allowed me to stay in the home by using the equity (difference between what they said the house was worth vs my balance on the mortgage) for rent for a year.

At the end of year (Sept 04) I moved out and rented a home in another county.

Recently, my bank was purchased by the same bank that I had the mortgage with and after going online to check my bank accounts (saving and checking) I noticed that the bank had three accounts in my name. Much to my surprise, my old mortgage is STILL in my name. Only the billing address was changed to the mailing address of the company that bought the home. They have been paying the mortgage (along with taxes and insurance) every month. The account is not in arrears, but I'm concerned as to what my liability might be if this company goes out of business and stops paying the monthly mortgage!!

I'm also concerned as to exactly how this company "took care" of the city's home inspection. I'm concerned that maybe the city can still prosecute me for violating some city ordinance!!

Sorry for the length of this thread and THANKS for any assistance you can give me.

Rodj44137 What is the name of your state?

[moburkes]

You should have copies of the papers that you signed when you thought you sold the home. Did any of them suggest that your mortgage was being paid off? Or, do they only say that they will become responsible for your same mortgage payments?

[Rodj44137]

The document was basically just a bill of sale. When my bankruptccy lawyer and I met with the bankruptcy court's rep, they discussed the fact that this company had kept the same mortgage and they weren't concerned about it. The court was concerned that I had retained the equity and used it in exchange for rent and for a time the court rep was debating whether to make me pay back the equity to the court for distribution to the creditor, but I have been discharged from the bankruptcy since April of 2004 and I never heard anything more about the equity. But, nobody said anything about my name still being on the mortgage.

[moburkes]

I'm not sure what can be done. You sold a property, but didn't make sure that it paid off your mortgage! If they stop paying, you're stuck. I take it that you filed Ch7, and that you didn't reaffirm the mortgage?

[Rodj44137]

One more thing. When we were discussing my selling the home, the company only gave me enough "equity" to cover 10 month's worth of mortgage payments because they said that they had to first pay back the months that I had defaulted on mortgage payments so they could then pay off the mortgage, but this was all only verbal. I will get the selling documents from the safe deposit box and check, but I don't remember them saying ANYTHING about a mortgage.

[nextwife]

A PROPER sale involves a closing and all matters of record that are against the real estate being paid off. There should be a closing statement breaking everything down. You took the fast way out and failed to have it done correctly.

[LindaP777]

Originally Posted by nextwife

A PROPER sale involves a closing and all matters of record that are against the real estate being paid off. There should be a closing statement breaking everything down. You took the fast way out and failed to have it done correctly.

TRU DAT!
If it did go to closing, I bet it was purchased "subject to the mortgage".