Legal Question in Real Estate Law in Virginia
To whom it may concern:
My husband and I are fixing a situation on his credit report. I was requested to call HSBC which is our second mortgage on our home. I need a written request or form stating the status of the account which lead me to inform them that our first mortgage has somehow sold the house. From the understanding of the representative I talked to, that is not possible until the lein or second mortgage is paid off, then our property can be sold. I am in a delimma.
Somehow our first mortgage was able to sell our home without notifying our second mortgage about what was going on. We have this debt that is floating around and have no idea what is going on. If the property was sold under illegal terms and the new homeowner living in that property has purchased a property that is "technically" owned by my husband still.
We don't have the money to pay up front but seeking a lawyer that is willing to take the risk on this case.
Thank you for your time
Rose Chappell
1 Answer from Attorneys
It is a little hard to answer without more details.
To sell the house in foreclosure, the holder of the first mortgage should notify ALL interested parties, such as the second mortgage holder.
If the holder of the first mortgage did not provide notice to everyone with an interest in the house, then the foreclosure -- and the resulting sale -- might be invalid.
I have overturned foreclosure sales because of such defects in the past.
The property would NOT be technically owned by your husband.
But you might have the right to go to court and OVEDRTUN the sale through a lawsuit. If you do nothin, then the house is sold and it is not owned by your husband. It woudl take a lawsuit to change that.
However, it is not clear of whether this helps you or how.
Or, put another way, this may be the problem fo the second mortgage holder. It may not be your problem or your issue.
Upon selling the house, the holder of the first mortgage is also obligated to pay any surplus to the second mortgage holder or to any other junior interests in the house.
If there was any money left over from the sale of the house after paying off the first mortgage, then it was required that any remaining surplus must be paid to the second mortgage, and then to any other liens or debts, and anything left paid to you.
It is possible for the first mortgage holder to sell the property for as much as possible, and if the second mortgage is not paid off, then the holder of the second mortgage will simply lose out.
So if there was no money left over after selling the house, then it really does not make any difference, practically.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
