House in foreclosure, Damaged by mortgage company could still sell it now.

[monty87ls]

Originally Posted by Silverfall

It is possible that they canceled the auction because they realized that there was a HUD lien on there as well. HUD has requirements that lenders try and work with homeowners to stay in their homes which is maybe why they were trying to get her to come up with a repayment plan and not sell it.

Auctions for properties get canceled all the time.

Everyone was aware of the HUD loan, she tried to sell the house but when the title report came back it was found out which is why it got changed to foreclosure. My mom didn't have the money to pay the difference.

They were aware she didn't wanna keep the house she couldn't afford it anymore since she stopped working. went from making close to 100k to 21k a year.

Wish I knew why the auction was cancelled auction and why nothing was sent to my mom since 2019. They had her updated address its on all the court paperwork.

[Rob0115]

If you feel like you’ve been wronged and had paperwork that gave you solace that the matter was resolved then call the state attorney generals office. If there was a material change and you were not contacted there’s something wrong. I’d work the short sale and as well as contacting the AG.

[minna_reid]

Pretty sure I saw this same question on another board - but here goes - Stop worrying about the property damage from the preservation company, because you will never get anywhere with it. Once a lender deems a house abandoned, they do go in and winterize etc. This is allowed per your mortgage (no one reads this fine print). These preservation people generally do whatever they want - with no accountability. You're chasing your tail on that.
Just short sell the property. If the mortgage (which YES the balance continues to grow with nonpayment - again, all in your mortgage), the HUD lien and costs of sale cannot be covered by the sale, a short sale is your only option. Get it listed with a local agent who knows short sales and sold ASAP and end this mess for good.

[move4ward]

Don't bother on suing the mortgage company. You are sitting on a money pit with the vacant house. A vacant house is a huge liability (e.g. drugs, rapes, fire, vandalism, burst pipes, mold).

I agree with minna_reid. Get an agent with experience in short sales.

[wildcat465]

File a Chapter 7 bankruptcy. It's a strategy that will immediately (but temporarily) stop all collection/foreclosure activity and would give you time to think about how to proceed.