HUD says i owe them moneyLost home in 2001 due to foreclosure. There was excess funds after sale. Mortgage co says they advised HUD. The da...

Question

HUD says i owe them money

Lost home in 2001 due to foreclosure. There was excess funds after sale. Mortgage co says they advised HUD. The day I got this new demand letter Feb 2007 I called HUD & spoke to rep who said mort co must have mailed letter to their Washington office and it got lost there. Thats bad enough, but what I really dont understand is after the foreclosure I wrote to HUD several times asking them to help me with what I still believe to be an invalid foreclosure sale, I provided FHA loan # and other info only to receive a standard form letter saying sorry they cant help me since I dont have an FHA loan. The loan # I gave them is the same one they're now demanding money on

Answer

Re: HUD says i owe them money

Why was the foreclosure sale invalid? Some kinds of invalid sale could perhaps still be pursued after six or so years, but in most cases your right to contest the sale would be lost, and you probably can't raise bureaucratic snafus as a factor in your loss. What about the excess funds after sale - who got them? Was the foreclosure by trustee sale or by court action?

Your situation is intriguing and some lawyer may be interested in accepting the challenge of turning the demand now being made into a success for you.

I don't see a specific question here, just a set of facts that are rather clearly stated, and also a rather situation-specific fact set that doesn't lend itself to a bulletin-board type of statement of applicable law, as we are accustomed to do.

There are foreclosure specialists out there, and a few HUD bureaucracy specialists as well. The tend to be expensive.

If you want to send me a pack of info about what happened, I'd be willing to at least skim it, but unless I see a way to attack the foreclosure at this late date, I doubt there is much I can do. Maybe I could refer you to an HUD/FHA specialist, or possibly if you would be satisfied just to get them off your back, without recovering damages, I could write some letters on your behalf.

Let me know; no charge for an initial consultation.