Legal Question in Real Estate Law in Massachusetts

First, the Buyer of the home from BofA, can sue either Bank of America or his lawyer for failing to properly foreclose the property. That is not your problem.

If you stop paying the mortgage, Sun Trust will go after the guarantor. My suggestion is you work out a payment plan to get rid of the mortgage altogether. If not, eventually Sun Trust will know it has a title problem and will call the loan and seek to collect from both you and your sister.

Before answering the question: "What should I do ?", more of the back story must be known.

Question:

1) Was this foreclosure done by a court (A judicial foreclosure) or under a clause in your note and mortgage, with an auctioneer but no court involved (foreclosure under a "power of sale")?

2) How do you know the second lien holder received no notice of the foreclosure proceedings?

(Do you have documentation on this?)

3) Is there a "deficiency judgment" against you or the guarantor on the foreclosed mortgage?

(i.e. Is NC a deficiency judgement state for this type property (Note: Some states prhibit deficiency judgments against homeowners for deficiencies which arise out of residentail owner-occupied foreclosures. Check this out.))

4) If #3 is "Yes", has anyone tried to collect this judgement from either or both of you?

5) Although after the fact, you should have a legal expert who is sophisticated in foreclosure proceedings audit this transaction. Overwhelmingly foreclosing attorneys and their clients ignore the law and so doing make critical mistakes in this process (These mastakes commonly include noticing all proper parties, time limits, calculations of the debt and interest, and fees [overcharging & gauging on permissible fees].)

6) Eventhough you now live in Boston, you sill may have legal rights and remedies in this matter. And

7) What, if anything do you wish to do about this situation?

Good Luck!