Legal Question in Real Estate Law in Texas

Hi,

Had a mortgage with a bank in missouri and a heloc with a credit union. Tried unsuccessfully to sell the house, so we did a deed in lieu (DIL) of foreclosure to avoid a foreclosure. In order to move forward with this DIL the the credit union (2nd lienholder) had to agree to release the lien. The balance of the credit union loan was about $9,000. The credit union in exchange for $2,000, paid by the bank, signed a Full Deed of Release. In this document it stated "in consideration of the full payment of said debt does hereby acknowledge satisfaction of said deed of trust and release the property therein described from the lien and effects the same".

We live in texas now. The credit union hired a texas law office to come after us for the $7,000 difference, plus no less than $2,500 in attorneys fees. I responded to them with a copy of the full deed of release signed by the credit union and asked them to verify the validity of the alleged debt. They responded with a copy of the Credit Agreement and Truth in Lending Disclosure. I ignored them, believing the debt was invalid, and now they have filed a suit. I received a Citation from the State District Court demanding an appearance in writing (Plaintiff's Petition with request for disclosure and request for admissions) by a certain date.

Do you think they have a valid case? What should I do now?


Asked on 9/07/11, 9:08 am

1 Answer from Attorneys
Donald McLeaish McLeaish&Associates;, P.C.

They have a case..any time one receives a citation and does not answer..a default judgment may be taken against them. If u have a defense, answer the lawsuit. Hiring a lawyer would be money well spent. We would be glad to speak to you. but hire someone or do it yourself

Read more
Answered on 9/07/11, 1:17 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Texas