Sunday, December 20, 2020

Foreclosure by Ex-In-laws Who Hold 2nd Mortgage

 

https://www.avvo.com/legal-answers/authorized/can-ex-in-laws-pursue-foreclosure-and-take-me-to-c-5061203.html?answered=true

Can ex in laws pursue foreclosure and take me to court if I am in the process of refinancing the house? I am currently refinancing the house that is in my name but my ex in laws hold the note for the house. I pay them monthly and am hopefully closing by the end of January. Due to previous issues with them, I have given them contact info for my lender and have requested them to contact her. They are now threatening to talk to their lawyer about foreclosing on the house because the process is taking too long. It was supposed to be done early fall, however, with Covid and having to restart the refi process with a new lender, it has pushed back the timeline. I am current on payments to them.

Jay K. Nixon  Avvo Rating: 10 Bankruptcy Attorney in Janesville & Kenosha, WI

If this is a short sale, you face difficult challenges with a non-institutional 2nd mortgage holder (your former in-laws). While banks would accept any reasonable offer, an unsophisticated lender may not.  Getting a lawyer into the negotiations might help you a lot, however, since, if you choose a lawyer who does bankruptcies, there are options to also "cram down" junior mortgages holders on upside down properties, if negotiations reach an impasse.  The same procedure can also freeze the first mortgage foreclosure, so long as you remain current with the first lenders payments, so that the total you owe will not exceed the value of the property at the end, and, at worst, give you up to five years to resolve the second mortgage one way or the other.

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