Sale Without Notice
Has anyone heard of a foreclosure sale going on on an owner occupied property, with the bank accepting payments on the first (second with same bank is 3 months behind), with no letter notifying her of the pending foreclosure auction?
We couldn't believe it. Is there any recourse?
Lydia
I'm not finding your question very clear. Are you saying that the bank filed foreclosure on the 2nd without giving notice to the title holder?
Seems very unlikely. In order to file a foreclosure suit the bank must not only give notice they must have service of summons-- a person not summoned can, of course go into court argue that they were not served and have the ruling overturned on that basis.
More specific answers would require us to know what state/county the case was in.
This is in Tennessee. The owner received no notice whatsoever about foreclosure being imminent. She received no notice of default. No summons, nothing giving any warning that they were calling the loan due. She showed me a payoff letter as of March 19, 2004 when I sat down with her a couple of weeks ago. So they had the correct address.
Lydia
Tennessee is a non judicial foreclosure state.
Upon default in payment, or any other terms or conditions, the Trustee is empowered to advertise the property for sale.
Unless contained within the applicable security instrument, no additional notice is required.
[addsig]
Since my last post, I have done some more research. I did see info about judicial and non-judicial foreclosure.
However, in the guidelines I was reading, it states, "A notice of sale must also be served upon the borrower at least twenty (20) days prior to the date of sale if the borrower is in possession of the property."
Well, the borrower is in possession of the property AND was NOT given a "notice of sale" prior to the sale.
So, any more comments? I'm telling you, I'm a newbie investor and I am AMAZED at how many scenarios I have not prepared for. You do learn so much "in the trenches". And I am SO GRATEFUL for comments from the more experienced investors, and even those who may not be more experienced, but still may have something useful to share.
Lydia
Time to either figure out how to file an answer to the complaint (foreclosure) yourself (your county attorney may help) or seek legal counsel, from social services or wherever if you/she cannot afford to hire a lawyer. Usually when notice is served the bank would have specific proof of service from the sheriff or whoever served, like a registered letter has a signature. If they don't have that and it's required as you say, you'll probably win...for now.