Moving On
Niki and I are looking for a new place to live. I don't know how much of this I have told to anybody so I will start from the beginning and try to keep it short(ish):
We got a little behind on our mortgage during the summer while Niki was out of work. We worked out an arrangement with Indymac (our lender) to get back on track by increasing our payments for a while thus avoiding foreclosure. They sent us paperwork which we signed and returned. Everything seemed to be working out.
Several days before our Vail trip in early October, we were shocked when we were served with eviction papers giving us three days to vacate... from the investment group who now owned our house. We spent at least four hours on the phone with Indymac the next day who claimed they never received our paperwork and it was too late anyway because they had already sold our house. After talking to several people and repeatedly presenting them with evidence (tracking numbers, the name of the person who signed for the paperwork, etc.) they admitted to making a mistake. We were told that they would rescind the sale and we did not have to vacate. All they asked us to do was call them a couple times a week for progress updates. Indymac was admitting culpability and was going to fix their mistake. Once again, we thought everything was going to work out.
Since then, as far as we can tell, Indymac has done nothing. They are difficult to get a hold of and give us as little information as possible while assuring us that they have somebody on it. On Black Friday we were served with a summons because the new owners are suing us for not vacating. Those are not the actions of somebody involved in negotiations to give the house back.
We got an attorney this week and she says we have a good case against Indymac. We have been advised to just get out of the house and file suit after the first of the year. The new owners have agreed to drop their suit if we are out by 12/31.
I am not the litigious type and was hoping to make it through life without ever having to sue anyone. I guess that was a naive dream. Indymac obviously hoped they could ignore the problem and we would just go away. No dice. We have clearly been wronged and have the documentation to prove it.
This may end up being a blessing in disguise. Thanks to the real estate crash, we were stuck in a house with substantial negative equity. We no longer have that burden. If all goes well with our lawsuit, we may end up with a nice down payment for a house that is cheaper and bigger. We have learned a lot about what is important to us in a house after two years of home ownership. This could give us a do-over so we can put that knowledge to use.
Anyway, we are looking for a house to rent now. There are a lot of options here and we can rent a house similar to what we have been living in for under $1200/mo. We are focusing our search in the southwest/Summerlin part of the valley because we like the area. Now that we have lived here a while we realize that our current location is just too far from everything we do and everyone we know. The southwest has an Orange County feel and is more convenient for commuting and social/leisure activity.
Updates to follow.

6 Comments:
That's terrible news. Hopefully things get better and if you win the lawsuit I hope you'd get the lender to compensate you for the attorney fees in addition to a lot of punitive damages.
11:59 AM
We haven't talked numbers with the attourney yet but it sounds like we can expect restitution for the money we have put into the house plus punitive damages. I think her fees will be based on a percentage of the winnings. Niki was the one who talked to her so I got all this info second hand.
1:23 PM
Yeah that's how attorneys usually work. They take some money from you upfront and then take a percentage(like a commission) from you if you win. But if you lose the lawsuit, they get compensated anyway. Not that I would know anything at all about this :-)
5:05 PM
Wow Aaron, that sucks that all this has happened during your vacations and the holidays. Thank goodness you were careful and documented everything so that you couldn't be totally screwed over. I am glad you are taking it to them on this and I hope that you can turn this into a better situation. Keep us posted!
9:36 PM
This might actually be a good thing. You can get our from under a crippling mortgage and negative equity. Plus with lower monthly payments on a rental home you can start to accumulate some savings.
9:32 AM
Thats exactly how I have been trying to look at it Dan.
11:15 AM
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