My parents have been paying on their house since 1993. They tried refinancing a while back and was ripped off by the fake company in which ruined their credit. The mortgage company their home loan is under is now going bankrupt and they are told they have to foreclose on my parents home unless they are able to refinance. Well, my parents aren't able to refinance based on credit so they are planning to move out this Saturday. Do they have any options They owe $300000 + on the home they paid $100 for California Please help
2007-07-11 06:48:55 · 6 answers · asked by Ceneca B 1 in Business & Finance ➔ Renting & Real Estate
No, no, no!
Sounds like your parents are being victimized again. The Lender going bankrupt has absolutely no bearing on your parents mortgage. Another investor will buy the "paper" from the current Lender and the payments will be made to the "new" holder of the paper. This will be a hassle but will NOT change the terms of the current mortgage.
The only way the Lender can Foreclose is if your parents have missed payments or not paid according to the refinance terms when the refi was last completed.
Something is wrong here and they need to contact the Department in the State of California that regulates mortgage companies and report exactly what they have experienced. If what you said is true, there is potential fraud going on.
Call them ASAP.
Now, they may want to consider refinancing if they are in a bad loan (meaning a higher rate than it should be or an ARM that is ready to adjust again). BUT, they should talk to an FHA Lender about a refi, after all of this has been resolved.
Best wishes!
Me2Me2Me3@yahoo.com
2007-07-11 07:09:04 · answer #1 · answered by Anonymous · 1⤊ 0⤋
If the mortgage company is going BK, that will have no affect on any of the borrowers. If your parents are current on their payments they cannot be foreclosed upon just because the lender is going BK.
Once the company goes into receivership the loans will be sold off to other lenders or mortgage servicing companies as part of the BK proceedings. The borrowers will be notified of who the new holder of their note is and will start making payments to the new lender.
Selling of loans is very common in the mortgage banking industry even when the lender isn't going BK.
Assuming that your parents are current on their payments, they should NOT move out of the house! If they do and stop making their payments THEN they WILL wind up in foreclosure! Don't let them do that!
2007-07-11 06:56:34 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
This doesn't make sense to me. The mortgage loan held by the mortgage company is still good even if the company goes into bankruptcy. I would expect the judge in the bankruptcy case to force the sale of the mortgage to another lender -- mortgages are transferred all the time, so this is not a big deal in and of itself. Foreclosure implies that your parents are in arrears (behind) on the mortgage. In that case, they have a very real problem.
2007-07-11 06:58:18 · answer #3 · answered by kevinngunn 3 · 0⤊ 0⤋
Something isn't right here.
No mortgage company has the legal right to foreclose on you because the company is going bankrupt. Another bank will buy their loans and continue servicing them.
They need to get an attorney.
2007-07-11 07:39:05 · answer #4 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Tell your parents to call their servicing department directly. These loans should be getting purchased by a new company as thats generally how it works.
You might tell them to get a lawyer to make the call just so they don't get pushed around by some phone flunky.
Mark Marchand
Your Mortgage Consultant For Life
2007-07-11 06:54:41 · answer #5 · answered by Mark M 2 · 0⤊ 0⤋
They cannot foreclose on a payment that is up to date. There must be proper filings done and several other paper work legal items before a foreclosure will take place.
If need more helpful mortgage information you should visit http://home-mortgage-report.com
If you need more foreclosure help try visiting http://foreclosure-help-now.com
Good Luck,
Tom
2007-07-12 07:28:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
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2016-10-19 03:55:55 · answer #7 · answered by ? 4 · 0⤊ 0⤋