Legal Question in Real Estate Law in Iowa

Hello,

My scenario is this... I bought a house on contract for 200k.... I then refinanced with a bank for 205k....due to job loss I got behind in payments... after depleting my 401k I could no longer make payments....I found a another job making less money... called the bank to ask for modification... got the run around... sent income info in several times... called and got the "we are working on it" response over and over again..... wanted to sell the home but found out that the 200k lien was never released so now there are 2 liens on the home for a total of 405k.... the home is worth less than 175k....home is due for sheriff sale..... is there anything I can do? Was not the bank suppose to make sure the previous lien was released? What are my options if any?

Thank you. (iowa property)


Asked on 6/05/11, 9:44 am

1 Answer from Attorneys
Robert Luedeman solo practitioner

I think this is a restatement of a previous question...The last time you seemed to indicate that the bank was kept in the dark about a lien you say exists on the property and I told you there was a potential for mortgage fraud. I think it's out of your hands now. If you kept the bank in the dark about the first lien the bank will act as if it doesn't exist. You may have more problems-I suggest you consult with an attorney and tell them the entire story instead of in bits and pieces.

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Answered on 6/06/11, 8:33 pm


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