My question involves a foreclosure in the State of: Tennessee
We are in the process of working through an attorney to surrender our former home. We live in KS now and the house was on the market for nearly a year with no buyers. We are 72 days late, so we've received the deafult notices. No word form the attorney to date on any agreement. It's upside down about $30,000. There are 2 lenders.
These mortgages were acquired by fraudulent applications submitted by a broker. My attorney has all the documentation. 1st mortgage app shows we were making way more money than we were, and even shows we were insolvent at the time the loan was closed = $67,000 in CC debt and NO assets (even though we owned a house in KC at the time). It was to be a NINJA deal but apparently that wasn't going to work out. Neither bank questioned these apps or the info given.
Our fault we didn't look over the apps, but they were given to us the day of closing. We were moving our family across the country, things were unclear, but we needed a house asap, etc. Not until just recently did I even read the applications, which was stupid, but it's the facts. We trusted the broker because she'd handled a lot of RE purchases for my SIL.
After the loans closed the broker called me to say congratulations, and explained she was due another 1% fee for getting the deal done (which I paid her directly - she couldn't report it or something) and told me that we "better not go BK or anything" ..hahaha.." I took that as a joke (like don't lose your house, it was hard getting the loans, etc) The mortgages were approved so we were grateful.
I'm wondering how far either lender might go to sue me and/or the broker for the false info they were provided. Or if they fear trouble so they'll leave it alone.
The house may be worth $125K-$130K and I owe 1st mtg $124,000 and $45,000 to 2nd mtg.
Just looking for thoughts on this.![]()

