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  1. #1
    Join Date
    May 2013
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    1

    Default Can You Sue a Mortgage Lender for Misconduct After Selling the Property

    My question involves a mortgage in the state of: Pa.
    I just lost my childhhood home to a private sale that was actually caused by an illegal foreclosure. A sherrif's sale had been scheduled and my co-owner sister was approached by a buyer who basically low balled her due to the sherrif's sale and she advocated signing a purchase agreement which we both did. After signing the original agreement I continued to conduct research and found several questionable meaning criminal-fraud issues with the original mortage that was defaulted on by us. These issues range from the obvious, over-stated income by loan originator, to the subtle, MERS issues, securitization issues etc. My financial situation prohibited me from seeking a HALAR or forensic audit of the loan docs and therein lies an area of review/concern. Once these issues came to light I attempted to back out of the sales agreement but had not included a escape clause(I did not produce the sales agreement-buyer's attorney did) but I was sued by them and eventually lost as I had really had no legal representation nor much of a leg to stand on. Having said all that there a plethera of issues here but they all boil down to a simple question. Is it worth pursueing this from a legal standpoint? Meaning what could I accomplish if I were successful in getting this investigated for fraud and such proven, investigated for note ownership, securitization, etc. , and if these results proved the foreclosure was not legally carried out, could that result in me re-aquiring the property which yes I could afford to pay for now given the chance.
    I recognize anyone interested needs additional information which I will gladly supply, but I a) want that property to leave to my kids someday unencumbered and b) don't like getting taken advantage of by a system that is wrong!
    Any information is appreciated.

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Can You Sue a Mortgage Lender for Misconduct After Selling the Property

    We do not have sufficient information to evaluate possible claims, and thus have no way to determine either what your damages might be or whether you still have recourse. Run the detailed facts and the documents at issue past a real estate lawyer in your state.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Can You Sue a Mortgage Lender for Misconduct After Selling the Property

    First of all, you signed the mortgage loan application. Whatever "overstating" of finances was on it, you agreed to and, therefore, you were the one that committed fraud.

    You didn't have the money to pay your mortgage payments so you would have lost the home to foreclosure if you hadn't been able to sell it. Nothing illegal about that.

    You lost a lawsuit because you tried to renege on the sales contract. You couldn't afford a lawyer to defend you on that. Besides, your attempted breach of that contract had nothing to do with your mortgage loan.

    Even on the remote chance that you could win a lawsuit against your lender (you have a better chance of winning the lottery or getting hit by lightning) you still won't get the house back since it's already been sold.

    Lastly, do you have the $20,000 or more that it would take for the attorney fees to pursue a lawsuit against a lender?

    If you have that kind of money then I suggest you buy another house and get on with your life.

    If you don't have that kind of money I doubt if any lawyers will give you the time of day.

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