Background: I am a co-owner of an investment condo that is in foreclosure. I am over 55, the only asests are 5 yr old car. The co-owner is under 35 yrs. old, owns a principal residence, has some retirement and savings.
We have made no mtg. payments since 10/09. The princial amt of the mtg is $178,000, the approximate market value is $180,000. The foreclosure is through Freddy Mac. March 2010, upon notice
of sale of a foreclosue sale, we wrote a ltter to the trustee
with a full disclosure that: There was pending litigation beween the assn and us. That our suits were to defend against a notice to foreclose on an improper special assessment and a lien in the amt of $14,500 and another lien in the amt of $950 for an improper special assessment for us to pay legal fees, in advance of a trial on the claims and ounterclaims; The second suit we filed in the amt of $400,000 was for extensive damages to the unit, (mold & rot and rodent infestation, electrical wiring hazard) to the garage damage, extensive mold, rot, collapsed ceiling, raw sewage, leaking HVAC lines; and removal of 800 sq. ft. roof patio, a limited common element.
In June 2010, we non-suited our claims. However, still pending are the counterclaims. with a cause of action of "unjust enrichment" rather than to enforce the liens by provisions of the condo docs and VA Condo Act, as the liens were improperly filed and the purposes and dates were misrepresented when they were filed. The assn. filed three counterclaims for the same same amts, and same liens.
Following our non-suiting our calims, the judge ordered we were barred "for abusing the process" by filing suit against the assn, whose board members the work hard without pay ". Never the less, we have no idea as to what amt the pre-determined judgement wil ultimately be, as lawyers for assn. altered amts. to over $40,000, after we were barred from defending against their counterclaims.
Questions: In filing bankruptcy, will this judgement be discharagable if it becomes a personal judgement aganist us? If assn. decides the judgement will be taken as enforcement of the liens, will they be permitted to foreclose on the condo, "before" Freddy Mac completes their process to foreclose? Is is plausible that Freddy Mac would consider a deed in lieu of foreclosure, in light of the extensive property damage and missing patio component of the property? Is is plausible Freddy Mac would sue us, after the bankruptcy, for the damages to the condo?