Legal Question in Real Estate Law in Florida

My mortgage company refused to modify my loan saying I did not meet their hamp criteria. They forclosed on the house and sold it to themselves at a public auction for 100.00 dollars. That means they are going to write off the house as a loss and then resell it making more money than if they had worked with me on the loan. Is this legal? A. Young


Asked on 10/27/10, 2:16 pm

1 Answer from Attorneys
Shelly Schellenberg MI & FL private practice

Yes, if you didn't meet the HAMP requirements, and they were the highest bidder on the property at auction. You could have negotiated a short sale, since you didn't qualify for HAMP, sold the house for more than $100, and likely have had all or most of the deficiency forgiven. Now, the bank will chase you for whatever assets you have to pay the difference between the sales price to an outside buyer and the amount that you still owe on the mortgage. If you have any money, a job or assets, you should have hired an attorney to protect your interests in the house.

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Answered on 11/01/10, 4:13 pm


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