Legal Question in Real Estate Law in California
We purchased a parcel of land at an auction on December of 05 to build a home on & the lender was through a so called financial institution (never heard of before) The land was found to be unusuable & we stopped making payments on it. In July of 08 it was foreclosed on (without our knowing of it). When trying to purchase a condo this year it was discovered that it still remained on our credit report as an open account & was obviously hurting our score. (Still unaware at the time that it was already foreclosed on) we called the company to see what we could do. They offered to take a payment & then send us paperwork that would serve as a way to modify our loan & sign us up for direct monthly withdrawals. At that time we gave a payment over the phone & awaited our paperwork. Was there any action(s) that were described above that we could file a suit for?
1 Answer from Attorneys
At a minimum it was illegal for them to keep an open account and collect money after the foreclosure. There may be other issues as well, but you haven't given enough detail.