Thanks for the information. So odds are that it will not report which will help my credit score. The bank that gave me initial approval of the loan is aware of the situation and is going to work with me. My friend will buy the property and then I will buy it from him a couple months later. (I need to save up some more as I will have two closings to fund, his and mine as well as having to make a new deposit).
Hopefully my friend and I can work this out and he will buy it. I'll enter into a contract with him with rights of occupancy and ability to buy back property for the payoff amount on his loan. I'll cover mortgage note and other items associated with property until I buy it back (which will probably be in 60-90 days).
I just dont get my aunt. She is purely motivated by hatred of me and isnt listening to reason. This has been going on for 5 weeks now and I havent had a good night's sleep since. What ticks me off more than anything is all the hard work I have done over the last 2 years can all go to waste. If I cant work this out with friend to buy property my only other option is Ch. 13 which I really dont want to do.
@Gunnar419 wrote:I'm sure not an expert on this and I don't know Louisiana law (which has a reputation for being pretty peculiar), but I'm wondering how this can be an "in rem" action at this stage. I know "in rem" actions mostly from studying civil asset forfeiture proceedings (e.g. taking the property of people suspected, but never committed, of drug war crimes). But normally in foreclosures the property would already have to be under the jurisdiction of the courts for that to come into play. And in that case, you would already have had a chance to present part of your case in court.
http://legal-dictionary.thefreedictionary.com/In+rem
Pardon me, though. I may be misunderstanding something and not helping your very tough situation.
Louisiana has two types of foreclosure, ordinary and executory process. Ordinary proceeding is a personal proceeding that can lead to a personal judgment. Executory process is an "in rem" proceeding in which the creditor only has rights to the real property. There is no personal judgment involved. The creditor can seek a deficiency judgment after the sheriff's sale if the sale doesnt cover the value of what was owed and if the property was sold at sheriff's sale with the "benefit of an appraisal."
The dispute is regarding the payments I made. As I said, I have spent over $1000/month on mother's expenses and have cancelled checks and credit card statements that backup my spending. I explained the situation with the bank and provided them with all my documents. My grandmother isn't technically foreclosing on me for late payments. She is foreclosing on the balloon note. Given these facts and the relationship that I and my friend have with the bank (he has significant assets with the bank), they are ready to close on the loan once I get earnest funds for the down payment.
Im meeting with an attorney this afternoon. I have voiced similar concerns about this as well. In particular, my grandmother's estate would not collect as much via a sheriff's sale as they would if we just refi the home. I even told them I would execute a document waiving all rights to home while maintaining monthly payments while we waited the 6 months if I When I spoke to her attorney I requested a copy of the POA and he said he didn't have one and was working directly for my grandmother. He indicated that after meeting with my grandmother that he felt she was mentally competent to handle her own affairs. I have serious concerns about this well. My aunt is clearly taking advantage of my grandmother and pushing her to make this decision based off solely personal reasons.
I'm thinking about filing a C&D order and fighting the foreclosure or filing an answer that she lacks procedural capacity to bring the suit.