Can a previous landlord foreclose on a house that has been refinanced? 2 Answers as of January 07, 2014

I was the owner and financed for 2 years. I was then refinanced with a mortgage company. After all the paperwork was signed and the previous owners were cut a check, they claim they were short $2000. They claim to foreclose. Can they do that?

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Janke Legal Consulting | Bruce C. Janke
It is unclear why you are using the word "landlord." If you purchased a property, the person you bought it from has nothing to foreclose unless you financed your purchase totally or partially with a loan from the seller ("seller financed" purchase). So, did you sign a promissory note to the seller that is secured by a deed of trust (mortgage) on the property? If so, then the seller could foreclose if you failed to make your payment, just like a bank or other secured creditor. But if the seller signed off on the Settlement Statement and received the full amount designated to him in the Statement, then he probably has no claim against you. However, I cannot give you a definite answer since I cannot see the purchase/sale/escrow documents. You would be wise to obtain a consultation from a real estate attorney, even if you have to pay for it. Your local County Bar Association may have a Lawyer Referral Service that will set up a 30 minute appointment with a specialist in your matter for a nominal fee. It would be money well spent.
Answer Applies to: California
Replied: 1/7/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
They can try but it sounds like it is their attorney fault.
Answer Applies to: New York
Replied: 1/6/2014
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