Legal Question in Real Estate Law in Montana

Reposession Information

Ten years ago I purchased a home thru FHA financing.

I got into trouble and got incarcerated and during that time FHA took my home and resold it. Last week I got a bill saying that I owed them $5000. The real situation is that if I had that kind of money I wouldnt have lost the house. I talked to a financial advisor for a local bank and was told that once they take the house thats pretty much the end of it. FHA is threating me with legal action and I need to know where I stand with this because I just dont have the money and it seems unfair at todays market prices they claim they lost money when they resold my house..

HELP is there anything I can do??


Asked on 2/18/02, 2:46 pm

1 Answer from Attorneys
Phillip Oliver Oliver Law Firm, P.C.

Re: Reposession Information

I would have to see the agreement with FHA before giving you a definite answer. However, Montana has what is called the "one action rule" in regard to houses. When a lender takes a security interest in the home, their only remedy is to re-posses and sell the home. Under these situations, the lender cannot seek any more money from the borrower if the sale of the home does not reimburse them for the amount of the loan.

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Answered on 2/21/02, 3:49 pm


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