How Can I Still Own My Home After The Mortgage Company Foreclosed?

Your mortgage company started foreclosure, but did not complete the process, so, your home is foreclosed, but you still own it.

Mathew Padilla covers the story in California, but cites another story in Wisconsin, and I know it is happening in Michigan.

Daily Kos is even blogging on mortgage companies abandoning homes.

Mortgage companies decide they do not want to take title to a property that needs fixing up before it can be re-sold.  As owner, they become responsible for property taxes, keeping the property up to code, following city ordinances about cutting the grass and so on.

There is no way for you to force them to take title to the property.

This is probably be even worse for the homeowner than a completed foreclosure.

Now the homeowner is still on the hook for keeping up the property.

If you still live there, fine, you can cut the grass and so on.

But, if you moved already, you have problems.

Even if you file bankruptcy, you cannot force the bankruptcy trustee to take title to the property.  It is unlikely a trustee would do that.  Unless there is some way to make money off of the property, trustees will keep their hands off.

Hey, maybe those mortgage companies should have done modifications with the homeowner, who would then still be taking care of the house.  And the mortgage company would be getting some payment.

But real mortgage modifications are just not being done, as Kansas bankruptcy attorney Jill Michaux blogged here recently..

The real solution remains judicial mortgage modification.

Related posts:

1. What Happens When My Mortgage Company Goes Bankrupt?
2. Foreclosed By Mortgage Company That Tricked Me?
3. Will I Get A Modification From My Mortgage Company?