Buyout problem...same last name

House2005 · Joined: 14 Sep 2005 Posts: 2

Hi,
My sister and I live with our parents and we were in the process of buying a new house for all of us (including 2 nephews).
We were hit with the news that our parents were in foreclosure.
My sister and I took care of the utilities and our parents took care of the mortgage.
When my Grandmother became ill (out of state) last year, our mother took a leave of absence from her job and moved to Memphis to take care of her (she's since passed away).
My dad got behind on the mortgage and made arrangements with the mortgage company to pay $12,000 to become current, they did so and then the mortgage company told them that Fannie Mae would no longer back the mortgage??
The strange part, and I work for a law firm and even the real estate attorneys find this strange, is that there hasn't been any contact from the mortgage company for almost 12 months?? Then they sent a bill for $25,000 this last May!
So now they are in foreclosure (date is Oct. 3)
It was suggested that my sister and I buy our house, which is fine, but since we all have the same last name, the mortgage companies are calling it a bailout. They've told us that we would have no problem buying another house, just not this one...
My sister and I are just sick that my dad didn't come to us before this got so out of hand, but he said he had made arrangements with the mortgage company (one that just settled a class action suit for not applying monies to people's accounts) and everything was supposed to have been taken care of.
Is there anyway we can get around the same last name problem?
My sister and I have excellent credit, we had been pre-approved for a loan for a new house but would hate for our parents to lose the equity in this one...
Thanks for any advice.

We are in Illinois
payoff is $149,00
appraised at $173,000

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

How did the lender find out the property was in foreclosure? I am afraid you are going to have the same problem with any lender. Do you have a friend who could buy the house, then in six months or a year you could buy it back from them.

House2005 · Joined: 14 Sep 2005 Posts: 2

Thanks for replying...
From what my father told us, the mortgage company told my father (with a financial counselor on a third line with my dad) that if he paid $12,000 (which he and my mother did), the mortgage would be up to date and as a matter of fact, they withdrew the foreclosure.

After the money was sent in, the next correspondence was a bill for $25,000. My dad and his financial counselor called the mortgage company and at first they said they hadn't received the payments, then after hemming and hawing said she did see the payments, they were applied, however there was no note that the foreclosure would be withdrawn.

My dad's financial counselor told them the woman's name that told them this and asked to speak to her, they had them on hold for over an hour, came back and said she was unavailable. They then asked for the recordings, since they were told they were being recorded, and after that they won't speak to my dad and told him that Fannie Mae won't speak to him either. The attorneys at my job even said they have no idea where Fannie Mae fits into this.

They are also looking into the charges that they piled on to see exactly where they came to the number of $149,000.
The original payoff was for only $125.000.

They're crooks and I just want to be done with them, PERIOD!
We are now in the process of finding someone who will buy the house and allow my parents to purchase it back in a few months.
Thanks again for your reply...

The Mortgage-Pro · Site Admin Joined: 19 Jan 2005 Posts: 2248

No problem, good luck with this mess.