Mortgage help!!!?

Question

I live in michigan and i have my mortgage with GMAC mortgage. I am 11 days late on my payment. I called the company to let them know that I wouldn't be able to make my payment until the 2nd of November. The lady told me my account had already been put in collections. She then put me on hold and she came back and told me I could pay with check over the phone on the 2nd. (I was planning to do that anyways) She then told me I had to call them back 5 days before the 2nd to let them know i would still be making the payment on the 2nd. Here's my questions:
Why was my account put into collections its not even 30 days late?
Is being in collections the same thing as a foreclosure?
Why would i have to call them 5 days before the 2nd to let them know i was still going to make the payment? I already told them i was going to why do i have to tell them again.
This lady has me very confused and worried. This is the 1st time i have ever been late on my payments.

Thanks!

Answer 1

Why was my account put into collections its not even 30 days late?

Depends how they define 'collections' - was the account status changed from PAYING - ON TIME to PENDING COLLECTIONS or something similar - probably, yes. Did they actually start the collection process - maybe by sending you a reminder letter or email, which may still be on its way to you.

Is being in collections the same thing as a foreclosure?

It's the first step, sure, but they're very unlikely to foreclose so soon. It's a long process, and they would really rather have you paying than getting stuck with your house.


Why would i have to call them 5 days before the 2nd to let them know i was still going to make the payment?

I'm sure they get lied to a lot and that most people who say they're going to pay on X date, don't. It will probably allow them to more accurately determine if you're being responsible and intending to follow through. If you call back, you're probably going to make the payment (and you are confirming that your earlier promise wasn't just wishful thinking - that you can STILL make the payment). It may also just have been something stupid the CSR said. Either way, they are almost certainly not going to foreclose or start other collections actions if you don't call, but then go ahead and pay as previously promised.

Answer 2

Honestly, it sounds like she was trying to scare money out of you. GMAC would have either called or sent you a letter asking for payment before they sent you to collections. Most companies will send you two notices asking you to pay and then third notice is telling you that your account has been sent to collections.

So:
1) Your account was probably never in collections.

2) No it's not. In order to be foreclosed upon you have to miss 3 consecutive mortgage payments and be served a notice of foreclosure. You then have 90 days from that date to come up with the amount you've missed or your house will be put up for auction. During the time after the 90 days and before the auction you can still fix the situation but chances are you wouldn't be able to keep the house. At this time the loan is to be paid in full, no more month payments. So you could ever have the rest of your loan amount to pay them and keep your house or you could find a buyer who is willing to pay what you owe to the bank and buy the house You'd be out of a house that way but you'll be saved from having a foreclosure on your credit report.

3) You probably have to call them 5 days before so they don't send a notice out to you or so they can make a note in your account that you are planning on paying.

Next time you think you might have a problem making a payment on time I would recommend notifying them before the due date so you can work something out.

Answer 3

Sounds to me like whoever you spoke with has no idea of what she is talking about. There is no way your account has gone to collections in 11 days. No way. You do not have to call them again before you make the payment, but I sure would call back, and ask to speak to a supervisor. What this person told you is nonsense. And no, collections is not the same as foreclosure. You will incur a late fee, and that's all at this point in time. Try to be sure to make that payment on the 2nd, you'll be just fine.
Good luck!

Answer 4

It is in collections because you are late and have gone past the grace period. It is not in or close to foreclosure, actually a matter of semantics. They want you to call 5 days before the second for a reason, they will probably ask you to set up a check by phone, to be taken out on the second, This in fact stops the calls

Answer 5

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