At auction will she get paied 90,000 from the sale before the mortgage company get anything? Can He still file bankruptcy to stop the auction?
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At auction will she get paied 90,000 from the sale before the mortgage company get anything? Can He still file bankruptcy to stop the auction?
My brother (really) is being foreclosed on , sceduled for auction on 5 june. The court has a amount of 315,000.oo owed to the mortgage company. Both Him and his wife are on the document. He also did a quick deed to him from his wife before the mortgage that he filed that has her giving up rights to the propert for a payment of 10,000.oo and when the home is ever sold an additional 90,000
Asked on May 20, 2009 under Real Estate Law, Florida
Answers:
B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
I very much doubt that your brother's wife gets paid first, especially if the quickie deed wasn't disclosed to the mortgage company. He needs to talk to a lawyer about this, before the sale, and he also needs to decide if he's going to go ahead with the bankruptcy.
Under many circumstances, a bankruptcy will stop the foreclosure sale, at least for the moment.
As far as the deed to his wife goes, most mortgage companies require what's called an affidavit of title to be signed, at the same time as the rest of the loan documents. The usual form of that, which is a sworn statement, includes a promise that there are no undisclosed liens or recent transactions that would affect the mortgage lender's interest. Your brother might be facing some very serious trouble if he tries to use that deed to take $90,000 off the top, and there isn't enough left for the mortgage loan. It's called fraud, and in some cases it can lead to criminal prosecution.
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