What is the name of your state (only U.S. law)? Currently... The state of confusion... AKA California
Approximately 26 years ago I purchased a property in Yorba Linda. The address is in Yorba Linda, California 92886. The loan number Loan # xxx-xxx9. The overall property is made up of two separate properties with two separate parcel ID numbers, and two separate tax bills. The parcel numbers are listed as follows:
Parcel #1
Parcel xxx-xxx-24 (Yorba Linda House)
Parcel #2
Parcel xxx-xxx-23 (Stable) Not part of current loan
When I bought properties I was told there were two separate properties and I could sell one of them off anytime I want.
In 2005 the bank came to me and said (and I paraphrase) " property values are up interest rates are down and we will refinance your home by itself giving you the stable property free and clear". That sounded like a good deal to me so I said yes.
In 2007 and started into a divorce has lasted over seven years and is still going on to this day. But in 2010 the family court awarded me the family home as my soul and separate property. Though the courts have awarded it to me as my sole and separate property her name remains on the mortgage. Approximately two years (2012) later my ex wife asked the courts to have her name removed.
The court requested that I do this. To accomplish this there were five options:
1) sell the home 2) refinance the home 3) Assume the loan 4) short sale the home or 5) turning in the keys and walk away
I contacted central mortgage and asked if I could assume the loan. They said no. I then asked if I could refinance the loan. Again they said no. It was at that point they decided to go for outside financing. At about that time family court had requested appraisals on the property. It was during this process that it was discovered that a building, that was on the property since the day I bought it was built across both property lines. see: www.helpfrom.us/bank
Once this became known issue, to my dismay I discovered the following:
Refinancing a home to another bank was no longer an option because of the encroachment issue. Short selling the house, which was not I wanted to do, also was not an option because of the encroachment issue. I also spoke to private investors who also wanted nothing to do with the property. Even hard money lenders based on the encroachment issue would not make the loan.
In short the only option that I had was to turn the keys over to the bank and walk away. This would cost me hundreds of thousands of dollars. I never would've agreed to the new loan had I known this was a problem.
Nobody buys a house pays on it for 26 years and invests thousands of dollars in upgrades if they know they can never sell it. When the bank refinanced the house of 2005 and separated the properties from each other I was never informed of a lot encroachment issue.
The bank is fully aware that I just spent in the last two years over $385,000.00 upgrading the inside of the house. I never would have spent that kind of money if I had known that the house could not be sold.
While I was still current with my payments I notified the bank of the situation and ask for their help. They assigned someone to make contact with me said they would look into it and turn it over to their resolution department. Again at this time I was not behind my payments. Months went by and I got no response. I was being pressured by the family court to resolve the issue.
But because the bank had put me in a loan with a no win situation there was nothing I could do.
The bank has acted in bad faith, when there are situations that would allow us both to win. By that I mean they get paid and I could keep living in my family home. But instead the bank has tried foreclose.
The bank had taken out the title insurance policy that now according to the bank does not cover the encroachment issue. The fact that they were experienced in real estate and finance could not take out the proper policy was not my fault.
I also have a title insurance policy and it will cover this issue allowing both the bank to get paid me to keep my house. But the banks lawyer has told me that "it's flat out easier to foreclose on me than to file against title insurance".
If the bank would work with me I would be willing to make sure that the proceeds from the title insurance went to the unpaid balance of the note to the bank.
The bank has fraudulently put me in a no win situation, and without any negotiation has tried foreclose rather than work out a solution. They had told me that they would not foreclose, but we're going to work with me, but then with only the smallest amount of notice is legally available, acting in bad faith they attempted to foreclose.
I filed a TRO and went to court last week. (Most scary). The bank presented their side and I presented mine. I was granted a preliminary Injunction.
Questions to the forum: 1) any case law anyone knows that will help? and any good ideas as how to proceed?
Approximately 26 years ago I purchased a property in Yorba Linda. The address is in Yorba Linda, California 92886. The loan number Loan # xxx-xxx9. The overall property is made up of two separate properties with two separate parcel ID numbers, and two separate tax bills. The parcel numbers are listed as follows:
Parcel #1
Parcel xxx-xxx-24 (Yorba Linda House)
Parcel #2
Parcel xxx-xxx-23 (Stable) Not part of current loan
When I bought properties I was told there were two separate properties and I could sell one of them off anytime I want.
In 2005 the bank came to me and said (and I paraphrase) " property values are up interest rates are down and we will refinance your home by itself giving you the stable property free and clear". That sounded like a good deal to me so I said yes.
In 2007 and started into a divorce has lasted over seven years and is still going on to this day. But in 2010 the family court awarded me the family home as my soul and separate property. Though the courts have awarded it to me as my sole and separate property her name remains on the mortgage. Approximately two years (2012) later my ex wife asked the courts to have her name removed.
The court requested that I do this. To accomplish this there were five options:
1) sell the home 2) refinance the home 3) Assume the loan 4) short sale the home or 5) turning in the keys and walk away
I contacted central mortgage and asked if I could assume the loan. They said no. I then asked if I could refinance the loan. Again they said no. It was at that point they decided to go for outside financing. At about that time family court had requested appraisals on the property. It was during this process that it was discovered that a building, that was on the property since the day I bought it was built across both property lines. see: www.helpfrom.us/bank
Once this became known issue, to my dismay I discovered the following:
Refinancing a home to another bank was no longer an option because of the encroachment issue. Short selling the house, which was not I wanted to do, also was not an option because of the encroachment issue. I also spoke to private investors who also wanted nothing to do with the property. Even hard money lenders based on the encroachment issue would not make the loan.
In short the only option that I had was to turn the keys over to the bank and walk away. This would cost me hundreds of thousands of dollars. I never would've agreed to the new loan had I known this was a problem.
Nobody buys a house pays on it for 26 years and invests thousands of dollars in upgrades if they know they can never sell it. When the bank refinanced the house of 2005 and separated the properties from each other I was never informed of a lot encroachment issue.
The bank is fully aware that I just spent in the last two years over $385,000.00 upgrading the inside of the house. I never would have spent that kind of money if I had known that the house could not be sold.
While I was still current with my payments I notified the bank of the situation and ask for their help. They assigned someone to make contact with me said they would look into it and turn it over to their resolution department. Again at this time I was not behind my payments. Months went by and I got no response. I was being pressured by the family court to resolve the issue.
But because the bank had put me in a loan with a no win situation there was nothing I could do.
The bank has acted in bad faith, when there are situations that would allow us both to win. By that I mean they get paid and I could keep living in my family home. But instead the bank has tried foreclose.
The bank had taken out the title insurance policy that now according to the bank does not cover the encroachment issue. The fact that they were experienced in real estate and finance could not take out the proper policy was not my fault.
I also have a title insurance policy and it will cover this issue allowing both the bank to get paid me to keep my house. But the banks lawyer has told me that "it's flat out easier to foreclose on me than to file against title insurance".
If the bank would work with me I would be willing to make sure that the proceeds from the title insurance went to the unpaid balance of the note to the bank.
The bank has fraudulently put me in a no win situation, and without any negotiation has tried foreclose rather than work out a solution. They had told me that they would not foreclose, but we're going to work with me, but then with only the smallest amount of notice is legally available, acting in bad faith they attempted to foreclose.
I filed a TRO and went to court last week. (Most scary). The bank presented their side and I presented mine. I was granted a preliminary Injunction.
Questions to the forum: 1) any case law anyone knows that will help? and any good ideas as how to proceed?
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