Legal Question in Real Estate Law in Oklahoma

''Unsellable'' Home and Foreclosure

In 2002 after I unexpectantly lost my job, we moved from our home in Oklahoma (bought in August 2000) We continued to make the payments by renting out the house. After that family moved in March 2004, we put the house on the market and hoped for a fast sell. We could no longer make the payments and found out that because this was an FHA mortgage if we rented it we would be in violation of our contract.

The house has not sold and furthermore the real estate agent told us that it has been discovered that the house has ''severe structural damage'' (a crack in the garage floor that was there when WE bought it) and therefore is ''unsellable'' as ''no mortgage company will lend on this house'' (her words not ours)

Obviuosly we cannot afford to fix the damage.

I called HUD who will offer no assistance in the matter because we are not living in the home. We are renting our current home. I asked about a Deed in Lieu of Foreclosure

but since we do not occupy the hope we can't do that either. The mortgage company is preparing to foreclose.

So we can't sell it, we can't rent it, we can't afford the payments and we can't give it back.

What can we do?

Lori


Asked on 6/13/04, 10:09 am

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: ''Unsellable'' Home and Foreclosure

I am sorry for your troubles. In Indiana, a deed in lieu of foreclosure would be possible, if the lender agreed. In your case, the lender probably won't agree, not because of the law (though I don't know OK law on the point), but because their loan is insured, so they will collect more money from insurance than they will from the house or you. If they pursue a personal judgment against you, then you should consider a bankruptcy. Good luck.

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Answered on 6/13/04, 4:39 pm


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