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Updated over 15 years ago, 06/16/2009
Help needed with Foreclosure situation
Hello All,
I am new at this and I am looking for all the help I can get.
I have 2 friends in Florida that are facing a foreclosure situation with a property (they were married before but divorced 3 years ago).
The property was bought when they were married. When they divorced, the assets they had were divided. They only had their primary home and this investment property which is now almost in foreclosure. In the divorce, she waived her ownership on the investment property and kept the primary residence; he waived his ownership on the primary residence and kept the investment property. The divorce settlement papers contain these documents specifying who owns what after the divorce.
The current situation is the following: He lost his job a while back and hasn't been able to pay the mortgage on the investment property. He has been working with the lender in order to get the property sold (short sale) or work out a Deed in Lieu of Foreclosure. He already sent all the documentation the lender asked for and was waiting for the lender to answer.
All of a sudden, she (his ex-wife) receives a letter from some attorneys telling her that she is going to lose her house (the primary residence I mentioned at the beginning) and that her monthly salary was going to be taken from her due to the foreclosure of the other property. He, on the other hand has not received anything like this. As you can understand, both of them are extremely confused, worried and frustrated.
My questions are the following:
1) Why is she receiving documentation relating to a property which she "gave up" ownership 3 years ago? Could this be a case of some lawyers trying to take advantage of a situation or is something like this for real?
2) If she is receiving this kind of documentation, does this mean that the divorce documents specifying the ownership of the properties were never sent to the corresponding entities (i.e. the lenders and the county) for recording / updating the new ownership of each property?
3) Wouldn't it be the lender itself the one sending this kind of documentation, if that were the case?
4) How could it be possible that she is receiving something like this when the lender hasn't even notified him about what they will do with the property (i.e. if the lender will accept the short sale or the deed in lieu)?
5) Whare can she find out if the divorce documents have been correctly registered and taken into consideration regarding this property (she shouldn't have any legal obligation/ownership on this property, right???)?
6) What can she do to avoid someone taking her home and her salary?
7) What should he do to find out what is going on and how to ensure the lender only considers him as the sole owner of this property and therefore the only one with a legal obligation/responsibility?
8) What is the legal step-by-step process in Florida for a foreclosure situation of this kind?
Any help, guidance, assistance on this matter is truly appreciated.
Thank you in advance for all your help.