what a mess, help!!

What is the name of your state? south dakota
we bought a house three years ago on contract for deed, only due to some financial and credit problems we had back then. we just found out that our basement is falling in-and is unfixable (contractor came to look), we also need to move out due to mold and mildew now coming in, we live in a very small town, there is absolutely no where to move into-no rentals, nothing, we found a lot and have been approved to build a new home-we know we have to default, can the owner come back at us for the princiapal and balance due? We were suppose to get our own mortgage in January of 2004, but will be unable to due to the condition of the foundation. We are ready to go on our new home, when wham! we were hit last week with a summons from the past mortgage holder that foreclosed on us 4 years ago for $26,0000. We contacted two different attorneys and got two different answers, our questions were, can the seller of the contract for deed sue us for the balance of $83,000?, what can the other mortgage company due if they file a judgement? and since we are already approved for the new house, do we tell them about this mess, and if we don't is it fraud? One attorney told us to file bankrup[tcy after we move into the new home, and not tell the new mortgage co about any of this, the other attorney told us we had to tell the new mortgage co that we are being sued and that we are filing, what should we do?

[HomeGuru]

[quote]Originally posted by macks1
[b]What is the name of your state? south dakota
we bought a house three years ago on contract for deed, only due to some financial and credit problems we had back then. we just found out that our basement is falling in-and is unfixable (contractor came to look), we also need to move out due to mold and mildew now coming in, we live in a very small town, there is absolutely no where to move into-no rentals, nothing, we found a lot and have been approved to build a new home-we know we have to default, can the owner come back at us for the princiapal and balance due?

**A: yes, of course. Read your contract.
********

We were suppose to get our own mortgage in January of 2004, but will be unable to due to the condition of the foundation. We are ready to go on our new home, when wham! we were hit last week with a summons from the past mortgage holder that foreclosed on us 4 years ago for $26,0000.

**A: you never resolved the first amount on your previous home and now you have another contract in default and then buying a new home? What are you thinking?
*********

We contacted two different attorneys and got two different answers, our questions were, can the seller of the contract for deed sue us for the balance of $83,000?,

**A: see above.
*****



what can the other mortgage company due if they file a judgement?

**A: they can do whatever is legal to collect on the judgement including hauling you into court to investigate your assets and income, filing a garnishment on your wages etc.
******

and since we are already approved for the new house, do we tell them about this mess, and if we don't is it fraud?

**A: yes, read your signed 1003 (loan application)
*******

One attorney told us to file bankrup[tcy after we move into the new home, and not tell the new mortgage co about any of this,

**A: wow, will this attorney also be your cellmate?
******
the other attorney told us we had to tell the new mortgage co that we are being sued and that we are filing, what should we do?

**A: get another opinion. The two that you talked to are legal clowns.

[quote]Originally posted by HomeGuru
[b]

Originally posted by macks1
What is the name of your state? south dakota
we bought a house three years ago on contract for deed, only due to some financial and credit problems we had back then. we just found out that our basement is falling in-and is unfixable (contractor came to look), we also need to move out due to mold and mildew now coming in, we live in a very small town, there is absolutely no where to move into-no rentals, nothing, we found a lot and have been approved to build a new home-we know we have to default, can the owner come back at us for the princiapal and balance due?

**A: yes, of course. Read your contract.
********

We were suppose to get our own mortgage in January of 2004, but will be unable to due to the condition of the foundation. We are ready to go on our new home, when wham! we were hit last week with a summons from the past mortgage holder that foreclosed on us 4 years ago for $26,0000.

**A: you never resolved the first amount on your previous home and now you have another contract in default and then buying a new home? What are you thinking?
*********

We contacted two different attorneys and got two different answers, our questions were, can the seller of the contract for deed sue us for the balance of $83,000?,

**A: see above.
*****



what can the other mortgage company due if they file a judgement?

**A: they can do whatever is legal to collect on the judgement including hauling you into court to investigate your assets and income, filing a garnishment on your wages etc.
******

and since we are already approved for the new house, do we tell them about this mess, and if we don't is it fraud?

**A: yes, read your signed 1003 (loan application)
*******

One attorney told us to file bankrup[tcy after we move into the new home, and not tell the new mortgage co about any of this,

**A: wow, will this attorney also be your cellmate?
******
the other attorney told us we had to tell the new mortgage co that we are being sued and that we are filing, what should we do?

**A: get another opinion. The two that you talked to are legal clowns.

[HomeGuru]

I am confused at your response by merely quoting my post.

sorry, just learning how to use this. my question, which I think I know the answer to is this; are we screwed? nothing we can do but move out and find something to rent, the house is unlivable, we will be sued for the balance, and it isn't our fault the basement is falling in, but it is our fault that we did a contract for deed. we could counter sue on the issue of non disclosure, we don't have the money to do that. any further suggestions?

[Souix]

Originally posted by macks1
sorry, just learning how to use this. my question, which I think I know the answer to is this; are we screwed? nothing we can do but move out and find something to rent, the house is unlivable, we will be sued for the balance, and it isn't our fault the basement is falling in, but it is our fault that we did a contract for deed. we could counter sue on the issue of non disclosure, we don't have the money to do that. any further suggestions?

***What does your insurance company say?***

insurance states it will not cover shifting or foundation problems-no go there

[HomeGuru]

Originally posted by macks1
sorry, just learning how to use this. my question, which I think I know the answer to is this; are we screwed? nothing we can do but move out and find something to rent, the house is unlivable, we will be sued for the balance, and it isn't our fault the basement is falling in, but it is our fault that we did a contract for deed. we could counter sue on the issue of non disclosure, we don't have the money to do that. any further suggestions?

**A: hire an experienced real estate attorney and file for rescission.

can I ask what a rescission is?

[HomeGuru]

Do a search on this website using that word and my user name.