Legal Question in Real Estate Law in Missouri
I fell behind on the mortgage of a rental property (it was originally my primary residence) 5-6 years ago. I had moved out of the property 10 years ago, and all the bills for the house were now being mailed to my new house. So, a little under 5 years ago, I sold another house to bring the mortgage current. I called my mortgage company to arrange a payment. They said it had been sent to a foreclosure lawyer, and he was not yet on file, but he would be contacting me soon. So, a week or so later, I drive by the house and there's a note on the door. 'this house was BOUGHT in the foreclosure sale. if this is your house, please contact us at....' So I got the lawyer's information finally, and the lawyer sent me copies of all their notifications. They sent them ONLY to that address, not the address the mortgage company had been billing me at for the previous 5 years.
I had a second mortgage on that house also. I just received a letter from they saying they just sold that second mortgage to another company.
My questions are:
is there anything I can do on the foreclosure (I have about a week left before the foreclosure sale date hits 5 years old.)
Can the second mortgage still collect? They have not attempted since the foreclosure, Nor have I heard from them since. Since they just sold it to another company, can that company collect? if so, for how long, since the property has been foreclosed on, my understanding is at that point they had the choice to buy the property and sell it to collect their money, or just be out of luck....
1 Answer from Attorneys
You are correc tin yrou assumption that there is a limited time in which to contest the foreclosure sale. That time may have already elapsed. Generally, a creditor has ten years to bring suit for a written contract. The type of note that generally accompanies a mortgage is that type of written contract.
As for the secodn mortgage. If the first mortgage was foreclosed, and nto subject toe hsecond mortgage, then the second mortgagee was not in aposition to foreclsoe ont eh proeprty after the first foreclosure. However, their note may still be collectable for ten years after the breach by the debtor (you) so they may be able to collect from you, even though they can no longer foreclose on the property.
As the way the foreclsoure sale may have been doen wrong, and you are arguably liable for two notes on a house you no longer have, you should gather your documents and meet directly with an attorney in your area, as soon as possible. Hopefully, there is still something you can do to protect your interests.
Good luck
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