My mother's house is in foreclosure. The trustee's sale is scheduled for December 13. How do I stop the sale

Question

just discovered that my mother's house is in foreclosure. Apparently a Notice of Default was filed last August but she did not tell me about it.

Now I have just Discovered that a notice of trustee's sale was filed last week with a sale date of December 13.

Apparently my mother had been refinancing her house every year to get more money to live on.

They were charging her huge prepayment penalties and huge fees every time she refinanced.

She received very little money herself. The mortgage brokers made all of the money.

This last mortgage that my mother got had payments over twice as large as her income from social security and a small pension.

She has some equity left in the house. I need to stop the trustee's sale and help her put her home on the market so that she can sell it and recover the little equity that she has left.

I also want to take legal action against the mortgage brokers for what they did to her and recover some of the equity that they stripped.

My mother and father bought this house new in 1957. My father passed away several years ago and left the house to my mother.

In the past 4 years these mortgage brokers have charged my mother over $200,000 in fees and prepayment penalties.

The interest rate they are charging my mother is almost 12%

There has been no change in my mother's ability to pay. She is retired living on a small pension and social security for 20 years.

The monthly payments are over twice her income. The mortgage brokers knew this when they put her into the loan. They knew that she had no ability to repay this loan.

She kept refinancing to get the money to pay the mortgage payments since they were more than her income.

I do not have the money to make up the arrearages,

I want to stop the trustee's sale long enough so that my mother can sell her house and recover what little equity she has left.

If what these mortgage brokers did to her is not illegal it should be.

What happened to our usury laws?

When I calculate the amount of fees and prepayment penalties against the paltry amount of cash my mother received, which was less than $50,000 total in all of the refinancings, the true interest rate and the cost of tthat paltry amount of money is obscene.

Answer 1

I am very sorry to hear about your mother.

Unfortunately our current laws are inadequate to deal with this problem. The mortage brokers know it and they have taken full advantage of that fact.

That will change in 2009.

I am currently working with a Democratic Candidate for Congress to unseat a worthless do nothing Republican.

We will win by a huge landslide. Democrats will take the Congress and Senate by huge margins and we will take the Presidency as well.

We will hold Congressional hearings on this problem in 2009 when we take over.

We will completely reshape the law regarding mortgage brokers and real estate brokers to a greater extent than even was done during the great depression of the 1930's.

The corruption and incompetence in the real estate industry is a disgrace that has destroyed the lives of millions of families and has destroyed the integrity of our financial institutions.

The incompetence and the thievery of the real estate industry will be stopped.

Unfortunately that will be too late for your mother, and I am sorry.

However we will return this country to fairness for everyone, not just a few rich fat cats with more money than they know what to do with.

Answer 2

Your options to stop the sheriff sale are the following:

Contact the bank and ask them to postpone it. Tell them you are trying to save the home, and can prove that you are working on a solution (refinancing, selling, etc.) and offer to fax them a letter and documents to back up those claims.

Contact the lender's attorneys and do the same thing. Sometimes, the attorneys will have a better contact at the bank than you do.

Request a hearing with the court and make your case for being given more time. They can postpone the sale for you, if you are trying to work with the bank and avoid foreclosure.

File bankruptcy and have the foreclosure process stopped immediately. Speak with an attorney about how long you would need to be able to file before the sheriff sale. Some states may allow you to file the day of the sale, while others have laws that drag out the process by days or weeks.

Answer 3

You may ignore the comments advising you to file some sort of protest. The person who recommended bankruptcy is correct, and it sounds as if your mother is an excellent candidate for doing so. A bankruptcy filing will stop the foreclosure dead in its tracks, at least for the time being. However, it won't allow her to keep the house indefinitely. Eventually she will have to give up the house unless she can pay off what she owes against it.

As far as suing the mortgage brokers or lenders, save your money. Unless your mother was declared mentally incompetent, she signed for what she got, even though it was not perhaps the best thing for her. That you do not LIKE what the mortgage brokers did here does not make what they did illegal. Sadly, your mother just didn't use good financial sense when she continued to refinance.

Answer 4

Sounds like there may be an authorized agreement in this foreclosures estate. You will have to examine together with your agent to peer if the REO/Seller (financial institution?) will entertain a again-up present. In my enjoy the REO/Seller will NOT negotiate a again-up present, however it can be distinct wherein you're, or the "laws" could have modified in view that such a lot of earnings now could have the purchaser's financing fall via earlier than ultimate. But, if the financial institution has authorized an present, your probabilities of getting them throw out the pending agreement don't seem to be well. After all, how could you and your husband suppose if you happen to had been below agreement to shop for this apartment and the REO/Seller terminated your agreement considering that a different purchaser got here alongside and made a bigger present? Sometimes the REO/Seller's truly property acquire addendum might say the Seller might keep to marketplace the estate, however it's most often in the course of the quick interval from attractiveness of present to receipt of signed agreement. Once REO/Seller's rep. has signed the agreement, most often the one factor with a view to intent the REO/Seller to terminate is that if the Mortgage Ins. Co or Originating/Servicing Lender may not conform to the phrases and stipulations of the sitting agreement. As steered by means of others, permit your agent aid you discover a different estate that's NOT below agreement.

Answer 5

If your mom is a senior citizen, there are laws to protect her from this kind of scam.
Stop the sale first and then go to the state attorney's office for advice, concerning the lenders and whether or not the company(s) have any suits against, for this type of thing.

You may need to have power of attorney from your mom to do this.
If she agrees, perhaps, you should help her manage her finances in the future, as well.

Answer 6

Go to the courthouse first thing Monday morning. She is probably already on les pendens list. At the courthouse they will show you what to file to protest and get a delay on the foreclosure. This is happening all over the country but you must file to protest. If you wait too long it will be sold on the courthouse steps and you will have to deal with the new owner. You can do all this yourself without an attorney.