Real Estate Law
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A plain "foreclosure" on a credit report can be devastating to a score and greatly reduce one's chances of getting a future mortgage.
However, if you pay back what is owed to the company before final foreclosure then the mortgage is considered redeemed, or kept open. This is when the term listed on the credit report is "foreclosure redeemed," which has less of an impact on the credit score.
On my credit report it says foreclosure redeemed. I had a problem with a bank about not honoring my credit protection on my line of credit that I had been paying on for 3 1/2 years. I went to Court with them and they were unable to produce the contract. I have not been billed by the bank for 1 year or even heard from them. What does that mean. Someone told me they may have been bailed out by Freddie Mac or Fannie may. The lean is still on the apt.
Why is it that they have not sent me a bill for a year or produced the papers that my lawyer asked for? They are just silent. Do you think they could have been bailed out?
What appears to have happened is a temporary stalemate. Since they were not able to produce the original paperwork, they lack standing to sue. Under this situation the court could have dismissed the case without prejudice (meaning that they could refile at a later date if they find the original paperwork). If the court has not dismissed the case, then your lawyer should move to dismiss for lack of prosecution.
The credit protection was only for 6 months so if he dismisses it then would I still have to make the payments again or what would happen?
It is unclear as to what would happen. Currently they are unable to enforce the note. The outcome would depend on whether they could ever find the note. Whether you should or should not make payments depends on how likely you think it is that they would ever find the original note.
If they never find the original note does that let me off the hook? My lawyer thinks they may have been bailed out what do you think
Without more facts I am not able to speculate as to whether they have been bailed out. If they never find the note, then that means that they cannot enforce it. If they cannot enforce it, then in essence you are off the hook.