Legal Question in Real Estate Law in Pennsylvania
3 years ago we defaulted on our mortgage loan. We left the property as requested and it went up for sale. Unfortunately the sale didn't go through because the 2nd mortgage put a lien on the house. We have been paying rent and saving money to buy a more modest home. I was told a year ago the home was bank owned and the loan was closed when PNC bought out National City Mortgage. Today I received another bill for home owners insurance. I spoke to the bank and was told the loan is still open in default. I called the foreclosure lawyer who said they went to court in January (not the first time) and should have a decision in about a month. The problem is the mortgage loan(s) were never closed and while still open we will never be able to buy another house. If this case is ever settled and the house ever forecloses and sells, are we going to show a 3 year old foreclosure or a new foreclosure which effects are ability to get a mortgage loan? Also, why were we asked to vacate the property before the house was actually sold and the loan foreclosed on? Shouldn't we have been able to live there all this time until the house actually sold and the loan actually foreclosed? We are very upset and confused. We feel like we paid rent for a much smaller house for 3 years when we could have stayed in our home all this time and paid no rent at all. Would we have a case of any sort?
1 Answer from Attorneys
When a house is foreclosed on, the owners do not have to leave the house until a court has entered an eviction or ejectment order and the order is being enforced by the county sheriff's office.
If there was a second lien at the time of the foreclosure, it would have been "wiped out" [as if erased] by the foreclosure.
Any foreclosure on your record will affect your credit and make it more difficult for you to buy a house.
You may check the court docket to find out what the status is of any foreclosure action against you.
Consult with a government authorized Consumer Credit Counseling agency, that
provides services with no charge. Do not use any credit counseling agency or company that requires you to pay before or during the process of their advising you.
This response is not legal advice, since I do not have all of the information that would be required, and I do not have a representation agreement with you.
* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.
* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.
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