How to keep a home in foreclosure with no paperwork

[Leah Ezra]

My parents separated in 2012, my father was the one to initially leave. When he moved out, I lived with my mom in our family home, but eventually she moved in with her new partner. At the time she decided to move, she offered that I either move as well, or keep the home and pay rent to her. I chose to pay rent and stay. I am still in the same home, now living with my husband and 3 dogs. This home isn't where we intend on staying for the rest of our lives, however, I feel like letting this home go would be silly. The house has been in foreclosure for going on 6 years this August (I believe). We have a feeling that the bank has lost the deed/paperwork to the home. I am curious what measures we could take so that we can guarantee our home won't be taken away, and we can own it free and clear. 

[Miguel "Mike" Perez]

I doubt bank lost it unless you have evidence to the contrary. The home just isn't as much of a priority to them as it is to you so they are probably not responsive to inquiries.

Even if they lost their paperwork, the county would have everything necessary to reproduce the paper trail and confirm the bank's position.

I would start by resetting your expectation. It sounds like you grew up in that house and it may seem like YOUR house, but on paper (wherever that is), it is the bank's house at this point.

Whether they choose to claim it is a different story.

If you want to keep the house I would contact a real estate attorney and explain your situation.

Your most likely recourse if you wanted the house would be make an offer to the right person at the bank. Maybe if crafted and presented properly they will go for the equivalent of a short sale and get some money for the property and get it off their books because right now it is costing them to pay for taxes each year. This adds insult to injury for them since they are being paid for the thousands of dollars they lent out and are now having to pay for money they are not getting.

If the bank decides to put it on the market then you'll have to compete with other potential buyers.

Also keep in mind that an investor may already be aware of this problem property (from the bank's perspective) and might be working on making an offer to the bank as well.

I wish you a speedy and fruitful resolution.