ORLANDO, Fla. - One house in Orlando could end up having two families facing foreclosure.
A family bid in an online auction on a foreclosed home in the Meadow Woods subdivision. However, those bidders didn't know they’re now on the hook for the previous owner's mortgage, said Channel 9’s Jamie Holmes.
Kenneth Delisi and his wife are boxing up everything they own after the family was foreclosed on by the Wydham Lakes Homeowner's Association because they missed a month of dues.
“This is terrible, terrible. Living on the edge,” said Delisi.
Their home went to auction on the Orange County Clerk's foreclosure website, and a third party, unbeknownst to the Delisis, bought their home for $16,000.
But that new owner had no idea when they purchased the house they also now assumed the full mortgage of $200,000.
“They think they just got a steal on a home,” said real estate attorney Justin Clark. “Then, they do a little bit more research or talk to an attorney and find out, no, you still owe Bank of America or Chase or whoever hundreds of thousands of dollars. It's like, ‘Oh, my God. What have I done?’”
Clark is seeing a dozen or so similar cases a week, he said, where consumers think bidding on foreclosures is a lottery ticket.
“They're just hearing these rumors that you can bid on HOA foreclosures and buy a house for $16,000,” he said.
Now, both families are stuck, Holmes said. The new owner has to evict the family to be able to take over the home to pay a mortgage they can't afford.
“We have no place to go,” said Delisi’s wife, Dawn Waterson. “I don't know where to go. I can't live like this."
Before you do any online bidding, you need to do a title search on the property appraiser’s website.
The Delisi family is hoping they can stay in the house and rent their home from the new owner. That way, both can try to pay off the mortgage.