Pending Foreclosure due to Bankruptcy

[Rebekah]

My husband and I have been operating a trucking company for 5 years. Last year, we were going in the hole quick and needed to make a shift in the industry. We refinanced our business loan with our local bank, sold one of our trucks and gave the bank the money. In all of this process, his parents let us use their house as colateral. The branch manager and the loan officer told us that the property was only standing good for 15,000 worth of a 51,000 loan. Also included in colateral is a truck that we do not have the title to, another truck they are holding the title to, and tools, equipment, etc. I spoke with the branch manager several occasions after filing PERSONAL bankruptcy. He agreed to have everything but the property appraised for sale to apply to loan, in which he has not pursued. Now he's harrassing our parents and threatening to foreclose. Is it legal to place a vehicle on as colateral if another company holds the title and first lien? And is it legal for the bank to change the amount that was originally VERBALLY agreed upon? Our parents have a first mortgage that is a MUCH larger sum with another company also. This manager has told all of us on seperate occasions that he intended to sell other property besides the house and refinance, not just me. Thanks

 

[HomeGuru]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Rebekah:
My husband and I have been operating a trucking company for 5 years. Last year, we were going in the hole quick and needed to make a shift in the industry. We refinanced our business loan with our local bank, sold one of our trucks and gave the bank the money. In all of this process, his parents let us use their house as colateral. The branch manager and the loan officer told us that the property was only standing good for 15,000 worth of a 51,000 loan. Also included in colateral is a truck that we do not have the title to, another truck they are holding the title to, and tools, equipment, etc. I spoke with the branch manager several occasions after filing PERSONAL bankruptcy. He agreed to have everything but the property appraised for sale to apply to loan, in which he has not pursued. Now he's harrassing our parents and threatening to foreclose. Is it legal to place a vehicle on as colateral if another company holds the title and first lien? And is it legal for the bank to change the amount that was originally VERBALLY agreed upon? Our parents have a first mortgage that is a MUCH larger sum with another company also. This manager has told all of us on seperate occasions that he intended to sell other property besides the house and refinance, not just me. Thanks<HR></BLOCKQUOTE>

Yes and yes.