I am in TX house was forclosed, back to bank, and sold
Submitted by janasmith72 on Mon, 09/15/2008 - 1:08pm.
Hello! I had 2 notes (both through HSBC) and my house was forclosed on. It went back to the bank and then the bank was able to sell it.
The first loan was $99,813 and was charged off/collection bad debt and my credit lists the 2nd note as forclosed and the balance owed as $266,198. Totallying $366,011. I just saw that the bank sold it for around $400,000.
My question is...once the house sold for more than I owed shouldn't the bank of removed both items (the collection/charge off and 2nd mortgage) from my credit or at least updated it to reflect that they are both paid off in full? Or in general...if the house sold for the exact amount owed what happens with my credit...or how can I ensure my credit reflects it?
Comments:
Very unusual to have a larger 1st mortgage than 2nd mortgage, are you sure you don't have those turned around? Also can you tell us how and when the bank sold the property?
Here is my first impression without looking at the specifics of Texas law (and note that I'm not an attorney): If it sold at the foreclosure auction then you may be entitled to the excess funds (or in this case your other creditors). If it was resold after it became bank owned, then you are likely not entitled to any of the gain. Finally a gain is unlikely because if it sold for $400k there was likely $34k in expenses and commissions anyway.
Sorry, I do have them turned around.
The bank just sold the house at the end of September. It went back to the bank at the auction and then the bank sold it as a REO cash deal. I don't know the exact sale price but I believe it was around 400-409,900.
I'm sure I am not entitled to any gains...however, how can I get my credit to reflect that the balance has been paid off (or mostly paid off)? I was thinking that it should update automatically since HSBC has to report the correct info... Thank you for any help you can give me!
Unfortunately the fact that they recovered all funds owed does not change the fact that they had to foreclose. As such your credit will not be updated to refect payment in full - it will remain a foreclosure. If there was even one dollar extra collected above the debt owed you should be entitled to it (though I didn't check the laws in your state). Sorry for the bad news.
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