Question about a summons for foreclosure on a home we used to own

[tolkien1]

I received an interesting summons this AM. Apparently, the home that my wife and I sold just as we were getting married 8 years ago is now in foreclosure. I was surprised to see that we are listed as a “defendant” even though we sold the home and the new owners lived there for six years before ceasing to pay the mortgage. The summons notes we have 20 days to respond to “the lawsuit that has been filed against you.” When I read further though, the only reference to my wife and I is that we may “claim an interest in the property pursuant to a Warranty Deed and that interest would be inferior to the current mortgage.”

I'll likely end up getting our attorney to look at it just in case but I was curious if anyone has received something like this before?

 

[Gonolz]

I received an interesting summons this AM. Apparently, the home that my wife and I sold just as we were getting married 8 years ago is now in foreclosure. I was surprised to see that we are listed as a “defendant” even though we sold the home and the new owners lived there for six years before ceasing to pay the mortgage. The summons notes we have 20 days to respond to “the lawsuit that has been filed against you.” When I read further though, the only reference to my wife and I is that we may “claim an interest in the property pursuant to a Warranty Deed and that interest would be inferior to the current mortgage.”

I'll likely end up getting our attorney to look at it just in case but I was curious if anyone has received something like this before?

Did you retain any kind of interest in the property and/or help finance any part of the purchase? Sounds to me like the mortgage holder is trying to cover its bases for establishing seniority in case you have a claim on the property.

 

[ericram]

Suggest consulting a real estate lawyer.

 

[Funk#49]

Yeah, Gonolz, it almost reads as if the OP had carried a second mortgage at the time of the sale.

 

[goldmom]

The entity who filed has to be shown on the summons, correct? Contact them and follow up with a certified letter and a copy of the deed. BUT if you held a second then you may have to consult a lawyer.

 

[tolkien1]

Yeah, Gonolz, it almost reads as if the OP had carried a second mortgage at the time of the sale.

Yeah, Gonolz, it almost reads as if the OP had carried a second mortgage at the time of the sale.

No, we did not hold a second mortgage on the home.

 

[berkshirenole]

If it was an assumable mortgage, you are on it until the mortgage is paid in full, no matter how many years ago you sold the property. Definitely contact a lawyer.

 

[Seminiferous]

See a competent EXPERIENCED real estate title attorney IMMEDIATELY. Take your entire file on the house, including the acquisition package, loan documents, title policies and documents, and the sales package.

From the limited facts as you described them, two central points are apparent:

1. You signed either the original note or an amendment assuming liability. That original liability continues no matter how many times the house has been sold, unless the lender has released you, which would be atypical. The NOTE is the document which creates your obligation to the lender; the mortgage merely SECURES the note.

2. The lender claims its mortgage trumps any claim you have in the property. This would be because (a) the filing of the mortgage antedated the filing of the deed vesting title in you when you bought the home, or (b) if your deed antedated the mortgage, you subordinated to the mortgage.

 

[goldmom]

What state do you live in, OP?