What can I do if company stopped the sheriff sale of my foreclosed home and did not inform me? 3 Answers as of December 04, 2013

In 2008, I was foreclosed on and the house went to sheriffs sale. The company stopped that sale. I was not notified of this. I filed bankruptcy in 2010 and this deed did not come up in the records. The company took back my house and left the deed in my name and has $10,000 tax lien on it and stops me from purchasing a new house. Why am I responsible for this?

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Then a final foreclosure sale must have not taken place if the deed is still in your name
Answer Applies to: New York
Replied: 12/4/2013
Janke Legal Consulting | Bruce C. Janke
If I understand you, in 2008, the lender cancelled or postponed the trustee's sale without notice to you. It appears that the lender set a new sale date again without notice to you. My understanding is that lenders are not required to give notice of new or postponed sale dates. You say that the company took back the house, which indicates that there were no bidders at the sale, so ownership reverted to the lender. At that point, the lender should have recorded a trustee's deed conveying title to the lender, which has the effect of removing you as titleholder to the property. If this was never done, then technically you are still the owner. The next question is whether your mortgage loan was included in your bankruptcy filing and whether it was discharged. If you used an attorney for your bankruptcy, you should make an appointment to discuss this with him. Otherwise, you should seek the opinion of a bankruptcy lawyer. You can arrange a 30-minute consultation with an attorney in any selected specialty through the Lawyer Referral Service operated by your county bar association. The cost is nominal and would be money well spent. There may be a court action you could file in which the court might order that the trustee's deed be retroactively recorded to the date of the sale, which could relieve you of the tax liability. You should consult with a real estate specialist attorney to get an opinion on this. Ideally, you might be able to find a local attorney who specializes in both real estate and bankruptcy.
Answer Applies to: California
Replied: 11/27/2013
Richard L. Hirsh, P.C. | Richard L. Hirsh
You are not personally liable for the taxes at this point and the lender will ostensibly pay them at some time. This has become a common problem.
Answer Applies to: Illinois
Replied: 11/27/2013
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