Alan Vaughn was recently served with papers regarding Carl's home mortgage. He forwarded them to me and I sent copies to our attorney.
The bank's attorney filed a judicial foreclosure instead of a "non-judicial foreclosure". The difference according to our attorney is that we are named as a defendant in the case and worst case scenario, we could be held liable for the the balance of Carl's mortgage (about $135,000). I don't know how that could be the case - but I am not an attorney. Even our attorney does not understand why they chose this method. But as she stated a judicial foreclosure has the potential to be more of a liability to us.
She (our attorney) has filed the appropriate paperwork requesting that we be removed from this action (December 22nd). She also is requesting payment of the $325 dues owing for 2008. Should we be able to obtain the funds, our attorney fees will eat up most or all of that. (But i assumed we should be protected from owing the loan balance, even if it costs us some money). I also brought up the $500 deed transfer fee, but we may be out of luck on that. As the attorney's fees would almost certainly exceed the $500 we would get by pursuing the action legally.
We can watch for someone moving in or check county records on occasion and then we can bill the new owner for any new dues and for the $500 fee. If the new owner at that refuses to pay the dues or $500 special assessment, we could then file a lien at that time.
