Ok so my GF moved in with me last year because she couldn't afford to heat her tiny house. Her life is much better now that she lives in my apartment.
She put it on the market, trouble is she has to ask for enough to cover the rest of the mortgage, and we all know how the housing market did last year. She is in upstate NY. She winterized the house, and it is empty. She does not want it.
This past Feb, she decides the house will not sell and just wants the bank to take it. She talks with them and it sounds reasonable for her to apply for a deed in lieu, this makes sense, bank gets the house, avoids all kinds of costs. She applies, it gets rejected because the bank is stupid and thinks the house can sell.
It is a tiny brick cottage that has less square feet than my 700 square foot 1 bedroom apartment. And she's pretty sure the realtor who sold it to her claimed there was a false last minute bid when she bought it, but you can't prove that, so she overpaid for the house.
So I called and am waiting to hear back from a lawyer friend of mine so we can consult with a lawyer and maybe keep the costs down or negotiate a deed in lieu out of court.
Today she gets notice from the bank that she should not communicate with them and instead with their lawyers, and as part of foreclosure she will have to pay all their legal fees and court costs.
GF looks up on google what court costs typically are and 60k is her answer. (She could be wrong) That's almost what she owes. Now she might have to file for bankruptcy.
She has done everything right as far as I can see it to handle this bad situation. If presented to Judge by a competent lawyer, I would feel that she should have to pay little, if anything.
What can she do?
She put it on the market, trouble is she has to ask for enough to cover the rest of the mortgage, and we all know how the housing market did last year. She is in upstate NY. She winterized the house, and it is empty. She does not want it.
This past Feb, she decides the house will not sell and just wants the bank to take it. She talks with them and it sounds reasonable for her to apply for a deed in lieu, this makes sense, bank gets the house, avoids all kinds of costs. She applies, it gets rejected because the bank is stupid and thinks the house can sell.
It is a tiny brick cottage that has less square feet than my 700 square foot 1 bedroom apartment. And she's pretty sure the realtor who sold it to her claimed there was a false last minute bid when she bought it, but you can't prove that, so she overpaid for the house.
So I called and am waiting to hear back from a lawyer friend of mine so we can consult with a lawyer and maybe keep the costs down or negotiate a deed in lieu out of court.
Today she gets notice from the bank that she should not communicate with them and instead with their lawyers, and as part of foreclosure she will have to pay all their legal fees and court costs.
GF looks up on google what court costs typically are and 60k is her answer. (She could be wrong) That's almost what she owes. Now she might have to file for bankruptcy.
She has done everything right as far as I can see it to handle this bad situation. If presented to Judge by a competent lawyer, I would feel that she should have to pay little, if anything.
What can she do?
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