This is kind of confusing. I will give as many details as possible. All help is appreciated!
I accepted a 2nd mortgage on a home I sold in 2000. On the day of closing the buyer's lender cut the amount they would loan due to a lower credit score. $19,000 was to be paid to me in 2003. I never was paid. I didn't persue it because I knew their rate was high and eventually they would have to refi. Well they did refi in 2006 and didn't pay my mortgage. In April 2008 I read in the paper that their home was being sold at Sheriff's sale and I was not named. My attorney had the sale stopped and we foreclosed on the mortgage which now is over $40,000. I was told that the title company made a mistake and a claim would automatically kick in. Deutsche bank would not pay because they said they were not putting anymore money into it. The title company did not pay either. So, everything went through the courts. The judge gave them 90 days to pay me or their lien would be extinguished. They didn't pay so it was going to Sheriff's sale on May 20th. 2 days before the sale (the people were still living there and had not paid a payment to anyone for almost 2 years) the house burnt down! I did not have insurance, but they did and their new lender was named on the policy. Deutsche bank sold the loan after the suit was filed! So now the new bank is calling them telling them they will work out a deal with them to start making payments. Is it possible they don't know their lien was extinguished? We went on with the sale and now I have a deed with no liens on it but the house is burnt down. Sorry for the long story but I tried to give as many details as possible. What do you think will end up happening?
A) The insurance company will try paying me the judgment? Remember though the judgment was satisfied when I obtained the deed at the sale, so should that be taken into consideration?
B) The insurance company will pay me replacement cost on the home and let me keep ownership of the land?
C) The insurance company will pay me replacement cost on the home but make me deed the land back to the people living there?
D) Is it possible they could even pay the people and no one else? All liens were extinguished before the sale except for mine but I was deeded at Sheriff's sale.
This has been crazy and I just want to get paid when I can. The insurance wanted a payoff letter from me along with any documents I have from the courts. I just want to know what everyone thinks.
I accepted a 2nd mortgage on a home I sold in 2000. On the day of closing the buyer's lender cut the amount they would loan due to a lower credit score. $19,000 was to be paid to me in 2003. I never was paid. I didn't persue it because I knew their rate was high and eventually they would have to refi. Well they did refi in 2006 and didn't pay my mortgage. In April 2008 I read in the paper that their home was being sold at Sheriff's sale and I was not named. My attorney had the sale stopped and we foreclosed on the mortgage which now is over $40,000. I was told that the title company made a mistake and a claim would automatically kick in. Deutsche bank would not pay because they said they were not putting anymore money into it. The title company did not pay either. So, everything went through the courts. The judge gave them 90 days to pay me or their lien would be extinguished. They didn't pay so it was going to Sheriff's sale on May 20th. 2 days before the sale (the people were still living there and had not paid a payment to anyone for almost 2 years) the house burnt down! I did not have insurance, but they did and their new lender was named on the policy. Deutsche bank sold the loan after the suit was filed! So now the new bank is calling them telling them they will work out a deal with them to start making payments. Is it possible they don't know their lien was extinguished? We went on with the sale and now I have a deed with no liens on it but the house is burnt down. Sorry for the long story but I tried to give as many details as possible. What do you think will end up happening?
A) The insurance company will try paying me the judgment? Remember though the judgment was satisfied when I obtained the deed at the sale, so should that be taken into consideration?
B) The insurance company will pay me replacement cost on the home and let me keep ownership of the land?
C) The insurance company will pay me replacement cost on the home but make me deed the land back to the people living there?
D) Is it possible they could even pay the people and no one else? All liens were extinguished before the sale except for mine but I was deeded at Sheriff's sale.
This has been crazy and I just want to get paid when I can. The insurance wanted a payoff letter from me along with any documents I have from the courts. I just want to know what everyone thinks.
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