how can i stop my home from forclosing?
You may consider the following ways for avoiding foreclosure: -
You may consider the following ways for avoiding foreclosure: -
a) First talk to your lender about: -
i. lowering the monthly payments
ii. lowering the rate of interest
iii. extending term of the loan
You may also offer repaying the missed payments to your lender.
b) The other options that are available to you for avoiding foreclosure are:-
i. refinance of loans through FHASecure loan or conventional loan
ii. short sale in case the equity in your house is negative.
Is there a way, to just hold up the foreclosure process? Just t
Is there a way, to just hold up the foreclosure process? Just to string it out for an extra 2-4 months (or as long as possible)?
It's nothing vindictive against my lender. It's just that I'm involved with litigation on the home. I have a court date (although quickly learning that doesn't mean much in California) to hopefully resolve a significant water issue at the home, coming from my neighbors property. I'm afraid that they'll want foreclose on the home before the case is heard before the court. So far, the lender hasn't really cared much about my case, only that they aren't getting payment. But if I can string them along until July-ish... I might have resolution on the litigation... and depending on the outcome, then be able to fix the home and sell it, rent it, or just start paying on it again.
Plus, from another perspective, for my insolvency test related to my unsecured credit card debt settlement... probably beneficial to still have this home and loan when proving my insolvency. But more just want to hold the home until my litigation is complete.
You can contact your lender and ask to speak to a loss mitigatio
You can contact your lender and ask to speak to a loss mitigation officer. Also there a tactic requiring them to "produce the note." Most lenders have sold the mortgage to a third party investor and no longer have the note in their possesion. They do not want you to know this as they cannot prove you owe the money without the note and therefore cannot foreclose if you demand a copy. Eventually they will get it but that can take a long time!
Quote:Also there a tactic requiring them to "produce the note."
Quote:
Also there a tactic requiring them to "produce the note." Most lenders have sold the mortgage to a third party investor and no longer have the note in their possesion. They do not want you to know this as they cannot prove you owe the money without the note and therefore cannot foreclose if you demand a copy. Eventually they will get it but that can take a long time! |
HOLY COW! Do you know anything about this tactic, other than just to request the actual signed note? I posted about this about a week ago in a threaded titled "Glen Kealey..." or something like that. I came across a random post on a stock message board that was discussing this Glen Kealey character and his theory that people could/are avoiding foreclosure by forcing lenders to produce the note with the original signature (and they couldn't do it). I thought it sounded a bit hokey, but have been trying to find out more about it for a couple of months...
And actually, about 1-2 months after my mortgage closed, Wells Fargo bought it... then the original lender, Capital Commerce went bankrupt a few months after that. I'm wondering if the transition of the original note ever even took place, or if it was destroyed/lost after Capital Commerce went belly up... it could be possible that the original note no longer exists.
But if you know anything more about this tactic, I'd love to pick your brain!
Technically all a lender needs to foreclose is the mortgage itse
Technically all a lender needs to foreclose is the mortgage itself - and that's recorded at your county clerk's office. "Produce the note" might delay a final hearing if the judge is sympathetic and decides it's a legitimate discovery request. But according to this AP article, no one can actually say if it's been successful outside of the few highly publicized cases when it was first used.
"http://www.google.com/hostednews/ap/article/ALeqM5hLOuvy9fguykC2NydTDrkqqyybvQD96DHN5G0"
That was a great article, thanks! I just need to buy some time,
That was a great article, thanks! I just need to buy some time, that's all really.
Quote:are you living in the home? I do not (although used to
Quote:
are you living in the home? |
I do not (although used to) . There are people living in it though. Technically they are renters, but with the flooding of the master bedroom and bath whenever it rains, they have stopped paying rent. Basically, that's the agreement we have to keep them in the house. Theoretically after the rainy season passes, around April or maybe May, they would start to pay rent again. But at the same time, they are also aware that the bank may be foreclosing on the home, so they are pretty comfortable staying there rent-free for the time being. I'd like to think that since there are people in the house, it may be deterring the lender from starting the foreclosure procedure as well... or maybe I'm just 75 days late, so they aren't to that point yet.
It's a pretty weird situation, to be frank. I wanted to sell the home several years ago, but it was impossible with the water issues... This is more like a forced rental of a home that I don't want to own.
if all you need is an extra 2 - 4 months, you should be fine. i
if all you need is an extra 2 - 4 months, you should be fine. i would call your local sheriff's office and see what their adjournment process is. in NJ, you can get two week adjournments two separate times on one docket number. there is also a new program that forces the plaintiff to work with you. what state are you in? i can probably help you further. foreclosures gets postponed all of the time.
Quote:if all you need is an extra 2 - 4 months, you should be fi
Quote:
if all you need is an extra 2 - 4 months, you should be fine. i would call your local sheriff's office and see what their adjournment process is. in NJ, you can get two week adjournments two separate times on one docket number. there is also a new program that forces the plaintiff to work with you. what state are you in? i can probably help you further. foreclosures gets postponed all of the time. |
I'm in California. It is a non-judicial foreclosure state, as I understand it. So the trustee can move to foreclose at the request of the lender, without going to court. But other than that, I don't know a lot about it.
Quote:Technically all a lender needs to foreclose is the mortgag
Quote:
Technically all a lender needs to foreclose is the mortgage itself - and that's recorded at your county clerk's office. "Produce the note" might delay a final hearing if the judge is sympathetic and decides it's a legitimate discovery request. But according to this AP article, no one can actually say if it's been successful outside of the few highly publicized cases when it was first used. |
I think it depends upon one's definition of success. The more I research this, the more news stories I find about people using this strategy. But I do think it's probably limited to "buying" time, not really to weasel out of paying the mortgage. I think the theory though, is that by delaying the foreclosure (sometimes 6-12 months), you put pressure on the lender to work out an acceptable loan modification.
For those interested, The Consumer Warning Network (google for their website), is pretty much the leading resource for the Produce the Note foreclosure defense. I'm not promoting them, or the strategy, just looking into it myself.
Realistically though, I'm probably going to have to hire a lawyer that specializes in foreclosures, to use the produce the note strategy or another method to slow the foreclosure process.
You can put home in the mitigation process. That will delay the
You can put home in the mitigation process. That will delay the foreclosure 2-4 months. You can not be foreclosed on if you are going through a modification.
The end result of this would be lower monthly mortgage payments and you can keep the home.
BEFORE YOU GO TO YOUR LENDER!!
Words of advice to anyone who is going through a foreclosure scare or reality!
If you so choose to go to your lender... Speak with someone who knows the guidelines of the bank that does not work for your bank.
What is happening is that there is SO MUCH BAD PRESS about loan modifications, more people are feeling the pressure to do it themselves. Great. If you can get a modification that will not cause you to re-default in 6 months or 1 year or anytime in the future... GO FOR IT!
Here's why I say beware. These are very real cases and if anyone wants to talk to them, they have readily agreed to share their stories.
Case #1: Due to financial hardship, "Mr. Smith" goes to his lender to get a modification. His lender is American Home Mortgage. When "Mr. Smith" originally signed the loan in 2006, he was approved for 380,000. His income was listed at 63,000/year. Mr. Smith is a bus driver who makes 33,200 a year and has been working at the same place for 21 years. He agreed to an adjustable rate mortgage (ARM). Come 2008, Mr. Smith's ARM adjusted. He is no longer able to afford the 8.9% interest rate payments and falls 5 months behind. Mrs. Smith is disabled and her only income is disability.
Upon going to his lender... WHOOPS! Bad loan (illegal) on the lender's part, let's give him a modification. He signed an agreement for (1) year to have his interest rate be 2.5%. After (1) year, his interest rate returns to 8.9%. What is Mr. Smith going to do in (1) year? His new payments in (1) year are going to be HIGHER than original because they are now tacking on interest and late charges to the back of his loan. If Mr. Smith is late one time, or misses any payments in this first year, he will NEVER BE ABLE TO MODIFY HIS LOAN AGAIN.
Case #2:
Mr. and Mrs. X have a 768,000 (9%) 10 year IO loan for a first mortgage, and a 156,000 (5 - 8.75%) ARM loan for a second. Her home is currently worth 600,000. After having a baby, Mrs. X had to cut her hours at her job. She then found out that her little sister had a terminal illness and she had to help pay medical bills. She went to her lender when they started to fall behind in Sept. 08. She signed a modification to fix her first loan at 5%. Her second loan is currently in modification for 1% thru December of 09. This loan readjusts her original agreement once again in December. Mrs. X cannot keep up on the bills, afford childcare, pay for her sister's medical bills and funeral expenses paying 4900 on one mortgage a month and have her other loan adjust. She is about to default on her "modified" loan. Once this happens, Mrs.
X WILL NEVER BE ABLE TO MODIFY HER LOAN AGAIN. Mrs. X will be foreclosed on within the next year. There will nothing that anyone can do to help.
So, before you sign on that dotted line, be sure that you know what you are signing. Lenders are working in THEIR best interest, not yours. Yes, there are a lot of bad loan mod companies. There are also a LOT of GREAT ones.
PS - Any nonprofit can operate in any state as well as collect any upfront fees.
Good luck to you all!