Legal Question in Real Estate Law in Georgia

In 2005 my husband and I purchased amobile home and 2 acres of land. The lady at the bank promised to finance it for 15 years, however, at closing, it was financed for 59 months with a $55,000 baloon payment. I told her we wouldn't have that since we were both on SS. She said as long as we kept up the payments, the bank would automatically refinance. We were never late with the payments. That bank went bankrupt and another bank bought them out. I called the bank and told them we didn't have that kind of money. So we moved out.

The judge foreclosed, the bank bought it back at the sale the judge ordered. It was foreclosed on for $66,000. Now they have appraised it at $42,000. The judge says we have to pay the difference and taxes and lawyer fees. How can they do that?


Asked on 10/11/12, 2:45 pm

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

To put it simply, you signed a note to pay back a certain amount of money at a certain time, and you defaulted. The loan documents (which you should have read) provide that the lender is entitled to attorneys fees. The property was sold and got some money, and you owe the rest.

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Answered on 10/11/12, 2:50 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

I hate to say this but this was 100% your fault. One NEVER buys realty without their own attorney. One also never buys property without reading the paperwork. You would have been told that anything the bank SAID was meaningless, and that you were bound by the paperwork. (And everythinmg that happened to date was in normal loan paperwork).

Then you apparently made a mistake again when you got foreclosed on, and again after when they sued to confirm the foreclosure and lost in court because of not seeing a lawyer. Banks like to take advantage of people without lawyers.

Now, sadly, to clean up the mess, you either have to pay the money or hire a lawyer to go bankrupt.

I say this not to be harsh, but because the couple hundred dollars you chose to save at closing cost you dearly. See a lawyer now about bankruptcy, and know that your experience posted here may spare others the same mistake you made.

Good luck, and I am sorry that you had to learn such an expensive lesson.

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Answered on 10/11/12, 5:48 pm


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