Legal Question in Banking Law in Minnesota

I went into foreclosure earlier this spring and I just got in the mail yesterday that the bank is sueing me. My first question is what are they sueing me for? Is it the remainder cost of what they are selling the house for versus the amount we took out? Am I responsible for that differenc? Question two is now that I have this form in the mail about them sueing what is my next step? do I need to get a lawyer? will I have to appear in court? If I do have to pay that difference will it be a monthly payment type thing? My last question is where the story gets a little more complicated. I signed for this house in feb 2007 with a boyfriend I was dating at the time. shortly after we broke up, I moved out(to minnesota), leaving him living in the house. Then he moved out into an apartment in a neighboring city and decided after a while that he could not afford two monthly payments(the house and the apartment) we went into foreclosure and now are being sued by the bank. do we have to pay the bank back together

Asked on 7/29/09, 8:46 am

1 Answer from Attorneys

David Anderson Anderson Business Law LLC

You should have an attorney review BOTH the litigation documents as well as the initial foreclosure documents. The lender/bank may have reserved their right to sue for the deficiency ( amount of money due after deducting the value of the home at the time of foreclosure.)

This claim is less secure ( since no real estate secures the amount due) so you have much more leverage for your attorney to negotiate with them to reduce or eliminate your liability (by presenting your realisitic financial picture, and/or threatening Bankruptcy.)

Call or email for assistance.

I am in MN, and have represented both borrowers and lenders in this area of law.

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Answered on 8/03/09, 9:29 am

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