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Family home foreclosed despite continuous mortgage payments

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Mortgage Professional America | 14 Mar 2017, 08:15 AM Agree 0
A rare default clause has cost a Virginia family its home
  • Bill S. | | 14 Mar 2017, 11:12 AM Agree 0
    It would help to publish the name of the lender. We could then get the word out to never, ever send them any business. This is pitiful!
  • Mike | | 14 Mar 2017, 11:50 AM Agree 0
    I agree! What's the name of that lender... want to help make this go viral, the jerks!
  • Rojofar | | 14 Mar 2017, 12:34 PM Agree 0
    Unbelievable! It appears to be "Legal" "Equity Theft". If the heirs did not receive the proceeds above the remaining mortgage balance. All equity and mortgage payments made during the period after death should be sent to the heirs. Deplorable!
  • objectiv1 | | 14 Mar 2017, 12:36 PM Agree 0
    If this was a true story the lender would be disclosed.
  • Just When You Thought You Heard It All | | 14 Mar 2017, 12:55 PM Agree 0
    I would like to know what institutional lender would be this unscrupulous without giving the heir to their Father's estate any advance options and/or correspondence before foreclosing. If this "Death Covenant" exists; maybe that's one of the reasons why many lenders don't want to make mortgage mortgages directly to a trust whereas this covenant would be difficult to enforce. What a shame!!!
  • Glenn G | | 15 Mar 2017, 06:11 AM Agree 0
    Please pardon me if I'm wrong, but don't most mortgages have a due on sale clause? After both parents passed away, didn't the daughter have an obligation to notify the bank & then:
    1. See if she could assume the mortgage?
    2. Try to refinance into her name?
    3. Sell the property to protect her equity & move?
    Regarding the lender returning the payments she made after the last parent had passed on - didn't she receive the benefit of the shelter of the home during those months she was paying?
    It's terrible this woman lost her family home, but it's hard to believe that she was foreclosed on and evicted without the opportunity to explore these options?
  • | | 28 Mar 2017, 11:45 AM Agree 0
    Google this and you will find this man was 71 years old and was blind in one eye (used glasses for the other one) and was hard of hearing. State police went to the residence and he walked out of the home with rifle and did not drop it upon repeated command by the officers.

    Home was sold on the courthouse steps recently. Mortgage company is not mentioned as far as I can ascertain. Wife of man had previously passed away.

    There is a way to find out the mortgage company by looking into the county (Powhaton County, VA) records.
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