They call me every other day when the 2nd payment is not paid, when it get close to the end of the month they write letters of forclosure saying my house is preforclosed . They know we get paid at the end of the month and we always pay 1 payment always.Are they trying to scare us?
2007-11-26 17:21:06 · 10 answers · asked by Corey P 1 in Business & Finance ➔ Renting & Real Estate
yes they are trying to scare you,but if they take a notion too they can foreclose after 2 months behind.ask your church for help catching up. most have funds set aside for this type help. good luck my friend.
2007-11-26 17:24:46 · answer #1 · answered by the man 3 · 0⤊ 0⤋
The answer as to when they can begin foreclosure is probably spelled out in your mortgage contract....the infamous "fine print".
The pre-foreclosure is an indication that the ball is rolling...there's a lot of legal paperwork that must be done, so there are probably pre-programmed trigger points in the mortgage company's computer system to sets the wheels in motion.
Scare tactics or not....that is of little concern. You should be talking directly with the mortgage company to get the facts from them. Also, you can contact the Better Business Bureau to see if any complaints have been filed against the mortgage company. And it wouldn't hurt to also contact your State's consumer affairs agency to know your consumer rights in this case.
In most cases, direct contact with the mortgage company is the first step you should take. They are not that interested in having houses....they want money. So if you need to reduce your payments in order to make ends meet, most mortgage companies might prefer to get some money now rather than none and then have to figure out what to do with a house.
In general credits much prefer to talk with a delinquent account and take reduced payments temporarily rather than to lose contact with you or have to go through the expense of the legal process of foreclosing or taking other legal action to try to collect. All of those things cost them money and that is a negative impact on their bottom line. To keep some payments coming from you is better than nothing...and they won't lose money in the long run because you will ultimately pay the price in additional interest costs over the life of the loan in exchange for reduce payments in hard times.
Hope this helps. Best wishes.
BTW: I got threatened with foreclosure when for some mysterious reason, the auto payment I set up with the mortgage company got turned off....I was on an extended project assignment overseas and "missed" 4 months of payments when the sent me the "foreclosure" warning letter. They couldn't explain why the auto payment was turned off or who authorized it....and get this....my mortgage was only $69.00 per month and I had less than $2000 to pay off. I had taken to overseas assignment to get the bonus to wipe out the mortgage.
2007-11-26 17:37:23 · answer #2 · answered by wisdomdude 5 · 0⤊ 0⤋
Those are terms stipulated in your home-loan contract and must be followed to the letter of the law. Your home-loan contract is legally binding and they are simply executing stipulations within the contract because their hands are tied by legality.
They have no other choice.
When you fall more than a certain number days behind on your home-loan payment schedule (which is specified in the clauses of your contract that you and your loan officer signed in each other's presence) you enter a state of default. This means you are in violation of the terms stipulated in your contract. The bank is only doing what its guarantor or executive board of directors is telling it to do. You would be much better off if you could get your payments current and keep them current. What's more if you could find a way to make double payments at once for a while, you would find the principal on your loan decreasing at a much faster rate. Even if all you ever do is bring your payments current, you will end up saving money. Every month you are behind you are paying extra fees in interest and handling charges.
Good luck
2007-11-26 17:31:02 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Depends on what the laws in your state are. Usually they will not start foreclosure procedings until you are at least 3 months behind. In GA, they have to put a legal ad in the paper, showing intent to forclose. It runs for 30 days prior to being forclosed on, then it is sold on the courthouse steps.
Prior to official foreclosure, they should send out a certified letter saying they are pursuing forclosure. Most letters up until that just say that they can pursue foreclosure if you do not bring your pay't up to date.
If you are sure you will be getting paid, most mortgage companies will let you set up a check by phone for a specific date. If you do that usually the phone calls will stop.
They will bug you and try to get you to pay, but it is highly unlikely they will start foreclosure procedures unless you are at least 3-4 months behind. Many mortgage companies will work with you on pay't arrangements. There are alot of houses being foreclosed on and the housing market for resales is low, so most mortgage companies do not want to foreclose on you.
Good luck!
2007-11-26 17:32:19 · answer #4 · answered by Nicole 3 · 0⤊ 0⤋
This is very common with finance companies. They have delinquency goals at the end of the month and try to collect every mtg payment to reduce their ratios. However, legally speaking yes a company can foreclose when you are late on your mortgage. It does not have to be a specific amount of payments before foreclosure is declared. You may benefit from the new FHA revised programs that help homeowners that are in risk of being foreclosed on. Contact me for further info.
2007-11-27 16:31:02 · answer #5 · answered by yourmtgbanker 5 · 0⤊ 0⤋
Im sure its a computer program kicking it out. Then some 18 year old zit faced boy is calling you.
But technically they can foreclose if you are 1 day late. Now most state laws state that as long as you bring it due before sale they cant foreclose. But what you are describing seems a bit ridiculous. If you list your state I can look up your foreclouser laws. Each state is different. Ill check back and send you the rules.
2007-11-26 17:27:22 · answer #6 · answered by financing_loans 6 · 0⤊ 0⤋
Yes, because you are behind. What you could have done before you were behind is change your payment date. They are trying to scare you as they smell 'blood'. There are more homes being foreclosed on in record numbers. What you should do is get some help to either catch up or talk to some financial counselors to find out what your options are. Good Luck, as it must be extremely stressful.
2007-11-26 17:27:04 · answer #7 · answered by La_Liona 4 · 0⤊ 0⤋
No, they're not trying to scare you. They mean business. If you continue doing what you are now doing, you may well find yourself in the center of a foreclosure action. They don't 'know that you always pay'. They expect the payments to arrive in a timely manner. When you are in arrears, you can be foreclosed upon.
2007-11-26 22:44:47 · answer #8 · answered by acermill 7 · 0⤊ 0⤋
Foreclosure is a breach of contract, once you missed the 1st payment they have the right to foreclose. Since there are so many foreclosure going on right now, they are most likely to work with you. Call them and let them know what your situation is, don't lie - give it to them straight. They will work with you. Good luck.
2007-11-26 17:30:09 · answer #9 · answered by Beau 6 · 0⤊ 0⤋
Yes they can, but no it is not likely. They are in the business to make money on loans, not in the business of reselling houses so they talk a big talk, but will not follow through except if you get way behind. Be warned though, like I said, it is TOTALLY possible!
2007-11-26 17:26:38 · answer #10 · answered by thenarcolepticone 3 · 0⤊ 0⤋