My parents filed b/k back in late 2012 and there home was included with the b/k. The IRS put a lien on the home around the same time for some back income taxes. My folks moved out of the home in May of 2013.
Fast forward 2 1/2 years... The house is still the way they left it. Property preservation has winterized the home and do periodic checks of the property but other then that its just sitting there.
The loan was through Wells Fargo, and I believe there loan fell into the mortgage fraud suit category.
So my question is can I move into the property until it actually goes through foreclosure without any serious financial consequences? The home is seriously underwater and I don't want to accidently somehow reaffirm that loan. I called Wells Fargo and they said the loan is only in default and not in foreclosure so its up to us if we want to live there or not.
My house just sold and the one I was going to roll into the sellers backed out. So I'm kind of in a spot
Any advice would be appreciated.
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Well Scottie, it seems that you have no ownership interest in the property, nor any possessory interest therein either. And from the facts you present, it seems that in all likelihood your parents are still on title to the property (for lack of any final foreclosure sale/auction).
So, a simple way for you to acquire title to the property quickly and legally would be to have your parents record a Quit Claim Deed to you, or even better, to your title holding trust, in the county where the property is located.
By that maneuver you’d avoid any contention from any quarter that you’re trespassing on the property. It would also convince the local utility companies that, as the Trustee for the trust that owns the property, you have the authority to get the utilities connected.
So, all it would cost you would be the recording of the quit claim deed, utility deposits, re-keying the place and any urgent repairs necessary to make the house livable.
Ultimately, but who knows how long that will be, Wells Fargo or the county tax collector will foreclose on the property and you’ll be obliged to move on.
But if it takes months and months for that to happen…more power to you.
--------------------------Ward
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