Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
My bank, Citi Mortgage, was working on a repayment plan or whatever for us. I say whatever because they told me, they would go thru all the paperwork we submitted and see what works best for us. So, after an extra 30 days easily of waiting they called with a repayment plan that was double and a half more then my orgianal monthly payment. $1120 to $2740! I was like NO right off the bat. Seriously who the hell can afford that? Then I proceeded to remind the person that I had been working with, don't forget the main reason I can't accept that offer is because I'll be on materity leave in about 3-4 weeks. I'm a contractor, when I'm off I don't have an income, no sick time, no vacation time, nothing, so that's why I can't accept the offer. Ok, no problem, I'll note that in the account and about 2 days later she called me back asking us to resubmit all the same paperwork as before but with only my hubbys income, since I won't have any by the time they get to ours. No problem, already got it all to them, again! In a couple conversations I had with them, they told me part of the amount thats due to them includes lawyers fees. Didn't hit me right away but I wouldn't have lawyer fees until it's send to the foreclosure dept, right?? Well with in a day or two of me rejecting the offer I got notification that it was sent to the foreclosure dept, even though they emailed me the paperwork for a financial hardship/workable solutions package. And I already got certified courts documents for the judgement against us.
My first question is: I didn't think they could send it to foreclosure while they were working with you??
2nd is: do they put the foreclosure on hold since they got updated paperwork from me for help?
3rd: if we decide to just walk away, how long do you think we have till they put it up in the sheriff's sale? I'm in Ohio, since I know states have different laws.
4th: whats the best option for us? walk away, short sale, see what they come back with? it's def not a house we are in love with, it is our first house tho. but at this point renting seems so much easier.
It just really upsets me that there seemed to be no time inbetween their actions and what I thought was right. Any ideas, help would be appreicated! Thanks
It just really upsets me that there seemed to be no time inbetween their actions and what I thought was right. Any ideas, help would be appreicated! Thanks
First understand your Mortgage lender owes you nothing, you owe them. Their only concern is you have enough income to pay them on the loan you took out. Your situation is on track to be a textbook case of a borrower faithfully working their lender, and you end up becoming a victim because you do not understand the process.
The so called payment plan they offered you - is called a Forbearance. It is a 2nd "Catch-Up" payment plan normally offered after 60 to 90 days of missed payments. Your Lender is loading you up with documents that that saying they are Foreclosing on you, an attempt to scare you to make your payments. If you accept any offer they give you, and make a payment. You have to wait twelve months before you can reapply for another modification.
As the the "Legal Fees" - I agree with you being a few months, they should not be mentioned "Lawyers fees" at this time.. Mainly because the state of Ohio is a Judicial state. Your main loan is frozen and a separate suspense account is set up; every month that isn't paid, the account gets larger. At this point, you will have to pay all the fees, P&I, taxes and insurance to get out of suspense. When they determine the loan is no-longer profitable, that when they closed the loan and move towards foreclosure.
You do not list the specifics of your loan - who is on the loan, the loan balance, escrows, conventional vs. FHA, the investor, income for you and your spouse. Just last week submitted case 3 years behind on their payments. I cannot analyze your specific situation.
After a forbearance, the next step is sending you an official notice your are entering into foreclosure. Sometimes it is delivered by the sheriff department, or by register mail. This is another attempt by the bank to scare you.
Again because you are in a judicial state - you are required to have two mediation hearings (3 months apart), the another 3 months before a foreclosure hearing, then at least another 30 days before the sale. Point - your on thin ice, that is cracking, but you haven't fallen through. 2nd point - every case is different, what a property is worth vs. the balance owed is a strong factor how fast a lender moves towards foreclosure.
Your question if they can foreclosed while working with them is yes. Your lender is only accountable to the investor. You will one the last one to be informed on any action they take. Your next question is an opened-end question, because in every situation it is different relative to the timing. In my opinion in your case, you have many months before they would foreclosed, noting your state laws and how late you are.
Walking away? That would be the a very big financial mistake if you care about your future. You need to discuss your situation in detail with a mortgage attorney, not a bankruptcy attorney. Your problem is with the bank, your husband make earn enough to afford your loan at the smallest modified interest rate. A mortgage attorney negotiates their battles with the lender. Bankruptcy Attorneys win their cases in court by filing bankruptcies. Your case is no where near going to court.
What is your best option? You have two options, to save it or let it go. You said your not in love with it, then the best way to let it go would be through a Deed in Lieu of Foreclosure. That way you are free and clear. Waiting a short period then qualify for another home. Compared to walking away - your credit is "Tanked" for 10 years, not able to qualify for a good loan for many years. Hence - if you are concerned about your future, you need to be really careful on what you decide to do.
thank you for some good points. I will need to do a little more research to see all my options. We are thinking about asking them to approve a short sale. Don't know much about it though.
And this unfortunately isn't our first go around with Citi and a foreclosure. But the first time we had help working with them and this time they seem to be taking their time but then speeding things up (like filing the foreclosure while the underwriters were still working on it??)
I just don't want or need the stress right now, so at some point it just feels so eays to quit fighting.
I found this very informative. We are going through the same situation with Chase/EMC mortgage (originated with Bank of America). I did have a follow up questions. If we go with a lawyer option, can we then go to the deed in lieu of foreclosure option. Is what they do moral? I dont want to rip off the bank, I want to pay what we owe. We were 2 months behind when the began threatening foreclosure, still paying our monthly mortgage, but 2 months behind. We though loan modification what the way to go. As you, our payment plan was higher than what we were struggling with already. A refinance would have worked, put those payments at the end of the note. Get a lower rate. Why do I have to get a lawyer before they will work with me. I miss the days of small town banking, where you had a loan officer, not just a number.
Also, is Missouri a "Judicial state"
They are possibly selling the house on the courthouse steps next week. If it does not postpone, how long do we have to move? Can the lawyer stop it in time?
I feel ya Hope. I jsut picker up my paperwork at the post office and the trail date isn't until Aug of next year, I think. So as the 2nd posted stated, it is a long process. Unfort we've been thru this before. and they did a modi and added what was behind to the end of the loan and our rate was lowered. But our rate was already super low, so when they lowered it it really isn't much but $80 or so a month less. That's not a huge help. We may look into a short sale. But we are waiting to see what they come back to us with.
Are you still paying them your payment? You shouldn't be and they should tell you they wont accept it also.
I also hate the big company about it all. Last year I went to our credit union but because we got behind on stuff and of our score, they couldn't help us. I even told the lady I just want to be able to walk in and talk to someone then call, put on hold, explain my story to each person, it's just soo tiring.
......If we go with a lawyer option, can we then go to the deed in lieu of foreclosure option. Is what they do moral? ...
.....I dont want to rip off the bank, I want to pay what we owe. .....
Hope - you must be the most honest person on this web site!!! Years ago there was a signing "it was always best to be honest"; but today in the world of business, you need to be careful what/how much information you give, or the other party makes a profit on you.
Answering your question whether or not to get an attorney, that depends on your situation. You can scour the internet for information on deed in lieu's. You will never find exactly your situation. If you get an Attorney, you need to do your reseach they have the experience for your case.
Attorneys are specialized to the specific cases they handle, just like Doctors. If you needed a pair of glasses and went to a foot Doctor, you would see two feet in front of you. As Bankruptcy Attorneys win there cases in court. As Real Estate attorneys witness mortgage closings and title work. Mortgage attorneys focus where the problem is - with the lender. Again you need to use a firm that can help you with your problem.
Example of what mortgage attorneys do....this weekend was writing a motion for a lady in Georgia who was denied a loan modification with BoA. I am going to battle with her her....
NATURE OF ACTION
This was a purchase money transaction on November 29, 2006 in the amount of $307,000. The borrower put 5% towards down payment, with a loan amount of $291,650. At 95% LTV the lender has created a situation whereby even the slightest depreciation would leave the borrower with a financial obligation far greater than it’s worth. Not only is the borrower highly leveraged but they are obligated to pay private mortgage insurance.
The servicing leader was Countrywide, in 2008 changed to Bank of America. The loan terms were an Interest-Only payment with the first 5 years fixed at the percent 6.875%. The changing of the interest rate cannot be more than 2% of the preceding interest rate. The capped interest rate cannot rise to more than 11.875%.
In reviewing the application there was no gross monthly income listed which means that the lender/broker used a No Employment / No Income Check underwriting process. Disregarding income and debt. Predatory lenders ignore conventional guidelines regarding the borrower's ratio of debt to income, or the level of income itself. If a borrower is obligated to pay 55% of his monthly income to principal, interest, and property taxes and another 20% to installment loans, medical, or other expenses, they are distend to fail. Given this the lender/broker has no way of knowing if in fact the borrower will be able to afford the mortgage payment. They have a fiduciary responsibility to ensure that the borrower is not in harm’s way however this type of underwriting process does in fact place the borrower in a precarious financial situation to where the ability to repay this loan could be very low if the interest rate changes positive. Added to the fact the loan will recast in the near future, requiring principle and interest to be paid. This is now reasonably predictable the loan payment will become non affordable unless changes are made.
The previous attempt for a loan modification starting in December 2010, there was no action on the banks part till the interest rate adjusted due to a scheduled adjustment. This past December 2011 the borrower’s interest dropped to where the payment is now affordable. Prior to the interest rate reduction her payment was non-affordable. Since this period of the interest rate reduction, the borrower has caught up on their mortgage and making on time payments.
Pursuant to CWALT 2007-HY2; the PSAs that govern certain CWL certificates contain an alternate form of Section 3.1a that requires modified loans to be purchased by the Master Servicer. Countrywide agreed to a Multistate Settlement where it was required to modify numerous mortgage loans meet agreed financial criteria. Countrywide servicing all loans in the CWL and CWALT securitizations, in which plaintiffs and members of the plaintiff class own or hold certificates. Thus, under the Term Sheet and judgments.
On June 28, 2011, Bank of America announced an $8.5 billion proposed settlement with Bank of New York Mellon, as Trustee for trusts established in Countrywide-sponsored securitizations of mortgage-backed securities. The proposed settlement applies to claims that could be brought by Bank of New York Mellon, on behalf of major institutional investors, in connection with 530 securitizations of mortgage-backed securities that were underwritten by Countrywide.
Attorneys General of 15 States including Georgia filed lawsuits accusing Countrywide of violating laws against predatory lending. Their complaints allege that Countrywide’s systematic failure to adhere to its underwriting guidelines, Countrywide engaged in many deceptive sales practices, charged unlawful fees and interest rates, and made mortgage loans that Countrywide had no reasonable basis to think that the borrowers could afford, all in violation of the predatory lending laws of the United States.
The purpose of this motion references how "Countrywide” deceived borrowers by misrepresenting loan terms. Often borrowers are tricked into accepting unfair loan terms, usually through aggressive sales tactics. They often are taken advantage of because of their lack of understanding of terms and involvement in complicated transactions. Even more informed consumers are occasionally fooled. Anecdotal information suggests predatory lending is concentrated in poor and minority communities, where better loans are not readily available. Having outstanding loans that borrowers are gradually paying off is usually good for a bank, but when mortgage loans become toxic, they can become a financial burden. .
Lenders do not like foreclosing on homes for several reasons. First, even if they can recover most of the value of the original loan, it is usually difficult to recover all of it. Second, large numbers of foreclosures can hurt markets, and poor markets mean a slump in business for lenders. For instance, if a bank suddenly forecloses on hundreds of homes in the same city, the city suddenly has far more homes for sale than what is normal, and this drives property values down. With property values going down, it becomes even more difficult for banks to get their money back by selling the foreclosed homes.
If the subject borrower loan program continues with its original terms. Of course, this only delays the inevitable……..
Gee thanks Rolling Rock, but we aren't asking for a free lunch. There was a time when I really wanted to stay in my house but now when they are so hard to work with and unwilling, it makes ya wonder, if they really do care, even though they say they do. they must find it easier to foreclose on us and sit on another house.
Are you really considering a short sale because you will not be employed for a matter of weeks? Your lender does not owe you a modification or a short sale and may or may not approve it. You and your husband will need to demonstrate a hardship and qualify for it. If you have more than one mortgage, it's even more challenging to get approved.
The ding of a short or foreclosure on your credit score can have an impact on your future in terms of the cost of insurance, interest rates on debt, your ability to buy another home or rent.
it makes ya wonder, if they really do care, even though they say they do.
They dont care, never did. You took out a contract with them for a loan for $xxx,xxx and they want to be repaid. If you cause them legal fees, they will add that in to the money you owe them. They may work with you to increase the amount of years you owe them, lower interest rate, balloon payment 25 years from now, etc, but dont expect them to reduce the amount of money you owe them.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Foreclosure process
