Housing clinic student avoids eviction of client due to foreclosure
This client sought our help after she received notice to vacate her home following a foreclosure. She was the former homeowner. She claimed that she had continued to make payments on the first lien note and did not understand how her home could have been foreclosed for failure to pay on a second lien note. The client claimed she had not received any notices of the foreclosure. The student quickly determined that notice had been properly sent by certified mail, and that the homeowner had failed to claim the notice.
The second lien noteholder had bought the property at the foreclosure sale.
The student then negotiated with the noteholder. It agreed to sell the property back to the client, albeit with an increased principal. The client agreed. The eviction was avoided. The property was sold back to the client.