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

Question

I just discovered that my mother's house is in foreclosure. Apparently a Notice of Default was filed back in August.

I did not find out about it until last week when I learned that a Notice of Trustee's sale had been filed. The trustee's sale is scheduled for December 13.

How do I stop the trustee sale so that I can help my mother put her house up for sale and recover the little equity that she has left in her house.

Neither my mother or I have the cash or can get the cash to pay the arrearages on the mortgage in time to stop the trustee's sale.

Also I want to take legal action aganst the mortgage brokers involved. They stripped the equity out of my mother's house.

The mortgage brokers had been refinancing my mother's house every year each time charging her huge prepayment penalties and huge fees. My mother received very little money.

The mortgage payments are over two times the amount of her income from social security and a small pension.

With respect to some of the questions.

She has owned the house since she and my father bought it new in 1957. My father passed away several years ago and left the house to her.

The total fees and prepayment penalties she has paid are over $200,000 in the last 4 years..

The interst rate she is being charged is almost 12%

There has been no change in her abilitry to pay . She has been retired on a fixed income of social security and pension for over 20 years.

I do not have the money to pay the arrearages or help make the payments.

The mortgage brokers knew that the monthly payments were more than twice the monthly payments when they made the loan.

I want to stop the trustee's sale long enough to permit her to sell the house and recover what lettle equity that she has left.

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

Answer 1

I am very sorry to hear about your mother.

This has become a problem all over The United States.

Dishonest and incompetent mortgage brokers have been taking advantage of people with ridiculously expensive mortgages that they do not need.

The mortgage brokers make a fortune for little or no work and they destroy the lives of good people like your mother.

Unfotunately our laws do not seem to be adequate to handle this situation.

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

I expect that we will win by a huge margin in 2008.

We will take the Congress, the Senate and Presidency.

The crisis in the housing market and the mortgage market will be one of our big issues.

We will hold hearings in 2009 when we take over the Congress, the Senate and the Presidency.

The corruption and incompetence of the mortgage brokers and real estate brokers will be exposed like it has never been exposed before.

We will have dramatic reforms in this industry of the kind that we have not seen since the great depression of the 1930's.

The real estate industry and the mortgage industry will be completely changed. We will eliminate the corruption and the incompetence that has plagued this industry for so many years.

We will put laws in place with some serious teeth in them.

Unfortuately this will be too late for your mother.

I know our current laws are inadequate to deal with this circumstance.

Not a day goes by when we are not contacted by someone with a problem similar to your mother's problem.

Our current laws are not adequate to deal with this circumstance and the mortgage brokers have taken full advantage of that fact.

The mortgage brokers and the real estate brokers will receive their comeuppance in 2009.

Their days of thievery, incompetence and the abuse of people are over starting in 2009 when the Democrats take over the Congress, The Senate and the Presidency of The United States by huge margins.

Answer 2

I agree with most of the replies here however some things aren't making sense. How long has your mom had this home ? What really is troubling to me is all of the refinancing you say the broker has done first of all your mom would of had to sign documents each time a broker or even a bank would do any financing this can't be done without her signing you need to talk to her ask her to show you all the paper work she has received . Why is the mortgage company continuing to refinance this mortgage when in fact you state her income is limited. When you refi your mortgage will go up unless the interest rate is lowered but the way things are today I can't see how she is able to lower her rate each year to make a difference most mortgage company don't recommend you do this yearly. There seems to be pieces missing here if I was you I would contact a lawyer ASAP if in fact what you say about the mortgage company a lawyer will help also your mom's age and state of mind will play a major part in this . I wish you both good luck I hope it all works out for you

Answer 3

did the brokers falsify your mom's signature on those loan applications and closing papers? Is she mentally handicapped? If not, how can the mortage lenders or brokers have forced her to apply for so many loans? When you say she got litte benefit, are you sure? The reason people refinance often are 1) to get cash cause they are constantly needing cash to pay off high credit card debt and other bills, 2) to try to lower their rates cause the credit was bad and the mortgages they get are higher interest ones. If lenders lied to your mom, and told her things that were false, thats one thing, but more than likely if you look at the situation objectively, the cause of foreclosure is usually due to a change in the borrowers ability to pay, such as job loss, death of income earner, medical bills etc..
The whole country is going through a foreclosure crisis, and our lawmakers are going to look for a scapegoat,and the mortgage brokers are an easy target. Most mortgage brokers, the vast majority of them are honnest people who are not cheating you or swindling you. The reason the country is in a foreclosure mess has more to do with other things and trends going on in the country as a whole that are impacting americans adversely. Think of it like floating off the east cost of america 3 miles off shore and you are trying to swim west to get back to land, but the current of the ocean is going east. No matter what you do, no matter how strong of a swimmer you are, no matter how diligent and how hard working you are in your swimming, you will not make it back to land. The current will take you where it wants to take you. Having said all this, if you want to help your mom keep her house, yes, contact the lender and try to make an arrangement to catch up on the back payments while still making the current payments on time. Perhaps, you can lend her some money, perhaps she can take in a tenant and rent out the basement or a room to help. I hope it works out. But my real question for you is why do you think despite your mom not being able to honor her committment to pay for mortgage loans that she willingly and of sound mind signed, why do you feel someone else is to blame and should be sued?

Answer 4

If you can help pay for the payments, then you can negotiate with the trustee as long as you are paying for your mother. The good thing for the buyer in a Trustee foreclosure as opposed to a Bank foreclosure from a conventional loan is that in a trustee foreclosure, you can negotiate and don't have to pay the full price of the balance owed like you would to stop a bank foreclosure. But you have to act quick, because trustee foreclosures have less of a time limit obstacle (3 mo. instead of 1 yr.) that a formal bank foreclosure has to abide by.

Answer 5

You need to pay the arrearages and bring the mortgage current.

If you are unable to do that, you should have your mom contact a bankruptcy attorney. They can file a bankruptcy and put a "stay" on the foreclosure sale. Don't wait though, you need to move quickly.

Answer 6

Contact the bank loan department manager. In this market, they don't want to foreclose if they can fix it.

If it's set for 12/13, odds are it's already been advertised and cleared by whatever yoour state's law is for a foreclosure action; only the bank can stop it at this point.

Answer 7

File a bankruptcy petition to stop all collection activity. Work with a lawyer to handle the other matters.

Answer 8

i suggest you talk to some attys. You might be able to file a bankruptcy ? this would stay the foreclosure action ? check and see if that is possible. you will need to act fast.

Answer 9

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