First they said I had to catch it up. Then they threatened me with foreclosure. Now they say they will work with me, but are waiting on some paper to cofirm that I have no other liens against the property. But they are still refusing to take my money, even though it is in my bank account. Is this legal? What can I do?
2006-07-20 15:53:58 · 12 answers · asked by Pamela P 1 in Business & Finance ➔ Renting & Real Estate
Once you have "defaulted" under the original terms of the note, the lender is not obligated to accept payments. Usually once you are 120 days delinquent a bank will begin the process of foreclosing on your home. At that point, they will not accept payments or even allow you to catch up in full. Why? By accepting payments they are implicitly extending terms to you. If you were to hire an astute attorney, he or she would be able to argue that you had not in fact "defaulted" because the bank had effectively extended you repayment terms by accepting your payments.
Good luck to you
2006-07-20 16:49:24 · answer #1 · answered by jason n 2 · 2⤊ 0⤋
Jason N comes through again with a great answer. This is not some "cowboy crap" or some "scam". Get this....mortgage lenders DO NOT WANT REAL ESTATE!!! There is nothing in it for them/us. They want to collect the servicing premiums and the interest. That money is then invested so that the lender can then make a larger return on their money. Insurance companies do this with their money as well.
The lender is not obligated to accept your mortgage payments if you are late on the payments. If you would like to prove this to yourself, this is talked about in your acceleration clause in your mortgage documents. READ IT.
Now, let's go a little further. This bank let you borrow their money on the notion that every month you would make a payment on this money that they gave you. If you let someone borrow $100,000.00 of your money, and they missed 3 or 4 months of payments, what would you do?
You missed the payments, period. A good option right now would actually be to talk to an attorney about filing a chapter 13 bankruptcy. This will stop the lender from being able to move forward with the foreclosure, then the bankruptcy trustee would then arrange payments for you to pay back the arrears and catch the mortgage up. Chances are, if you are in the big of a mess with your mortgage, I am sure that there are other bill collectors wanting money as well.
Your options now are to either wait for the bank to file the forebearance aggreement, which is what they are doing, or go BK.
Good luck!
2006-07-20 17:57:42 · answer #2 · answered by Kaz 3 · 0⤊ 0⤋
Well it depends on how long the foreclosure has been going on and how much you owe and are offering to pay.
Each state is different, but it goes something like this. They file a NOD (notice of default), you have up to 115 days to cure the ills (pay up ALL the back payments and late fees and the foreclosure costs) and reinstate the loan.
Now if this isn't your first time through the process many loans have an acceleration clause that allows the bank to call the entire loan that is in default. It doesn't happen often because banks don't want properties they want payments.
2006-07-20 21:01:32 · answer #3 · answered by GaryODS 3 · 0⤊ 0⤋
Real estate guy is right. If you need 1 month only then borrow from a family member for 1 month and pay them back. The mortgage company has been rather generous in allowing you to stay in your house payment free for 6 months so don't go blaming them for not giving you anymore time. Call a BK atty and see if BK will stop the sell immediately.
2016-03-27 01:34:46 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, yes. If you are too far behind or a repetitious late payer, they can pull the plug and very little can be done. You will hear many suggestions and what would seem to be good advice in situations like yours but, it's the bank's money. They "owe" you nothing. They are not a charitable organization nor are they tied in with welfare. It's the real deal. It's their way only. Sorry, I wish I had some B.S. to give you to make you feel better but you wanted the truth. Been there,,,done that. There is nothing you can do if refinancing is not an option.
2006-07-20 16:03:50 · answer #5 · answered by orchard_littlejoe 2 · 0⤊ 0⤋
If they have started forclosure proceedings, they cannot take your payment without stopping the forclosure.
My guess is that they intend to forclose on you, and are refusing the payment so that they do not jeopardize the forclosure. Yes, it's legal, but is pretty sneaky.
Remember, they'll be a lot happier with a whole property than with a single payment. You need an attorney. Like now.
2006-07-20 15:57:47 · answer #6 · answered by Stuart 7 · 0⤊ 0⤋
That sounds like some good ole coy boy western crap! LOL I've never seen that anywhere other than the movies. Is this the new scam to cheat home owners out of their properties?
2006-07-20 15:58:53 · answer #7 · answered by fiteprogram 3 · 0⤊ 0⤋
you need to check what your contract says you may loose your house if they don't accept your money. Each month of no payment gives them more rights, speak to a supervisor and make them accept your payment now.
2006-07-20 15:59:43 · answer #8 · answered by trailsman1961 3 · 0⤊ 0⤋
I've never been in this situation but it doesn't sound right. I would read over your contract and talk ti them and ask for their plan of action in writing. I'd consider talking with a lawyer.
2006-07-20 15:59:02 · answer #9 · answered by ~*~*~*Jenny Anne~*~*~* 3 · 0⤊ 0⤋
Contact a lawyer. If they refuse to let you pay what you owe, then they are not dealing in good faith.
2006-07-20 15:57:02 · answer #10 · answered by mapleguy 7 · 0⤊ 0⤋