Hello all



Has anyone gone through this?

Is there anything my Wife and can do to make it stop. IE a good company to hire.



I'll apologize in advance for a long post.

Last summer my wife went into a nervous break down and in the proses made some very poor decisions and hid it all very well from me, not trying to bash her or anything. We are still together and are now closer than ever.

Fast-forward to December, I get served by the sheriff, this is the first I learn of being in default. She was afraid to tell me because she thought I'd leave her. So we jump to action to save our house and hire a company for $1500 that promised great things to us like a new loan, repaired credit and best of all our home, no auction no nothing. Well here we sit in June the auction is in Aug and still no deal, lots of don't call us we'll call you phone calls. We are prepared for a forbearance agreement money in savings waiting for it, just no deal.



We are both young and wishing we were wiser to the "if it sounds to good to be true it is" saying but under the stress of it all we caved. I'm starting to think this guy is a crook, so now were looking into a lawyer to save the house another 1500-2500 I'm sure.

I know we'll never see the 1500 back from this guy but that I can accept if we keep the house, don't like it but we'll eat it. My truck has good heat but winters get cold in WI.



So without getting into whole story of me with my MS and my Wife with her mental disability's I was hoping to get some advice from you folks.



I'm sorry for being a downer and dumping this here but I don't know what to do. We'll be in debt to you and any way we can repay that debt we'll do our best.



Adam

 

Adam, I don't really have any advise except to see what your community may have to offer. That is not a fun situation to be in.

 

Have you sat down with your lender to discuss getting back on track? I don't know how much you owe but it seems like the $3,000 - $4,500 you're spending on lawyers could be going toward your mortgage instead. I don't know the lender's rationale, but it seems like they have a vested interest in trying to work it out, it costs everyone money to foreclose.

 

I'd agree with jskufan but you're beyond that point now. The lender has already spent most of the money it needs to go through the foreclosure. About your only out is to look into bankruptcy - and even that may not do it.

 

If you can sell it before the sherrif's sale you will be o.k. as far as credit goes. It will show on your credit report as "satisfied". You will show some late payments but that's not nearly as terrible as a foreclosure or bankruptcy (7-10 years to remove in most states) You would just have to find a buyer who is willing to close rather quickly. Live with family or move into an apartment for 2 years while saving as much as possible and you will get a loan from any lender out there, not just the shady ones. Good luck with whatever decision you make. You should if time gets tight on a pending sale be able to go to your county building and show the clerk the offer or the contract for the sale and they will postpone the sherrif's sale for up to 30 days.

Michael.......

 

I used to work in Mortgage Servicing (still with the company, just another dept). If I recall correctly, once a home is in a Foreclosure status, any dealings with payoffs or payments must be handled through the attorney hired by the mortgage company. If you don't have this number, your mortgage company can, and should, provide it to you. If the sale isn't until August, then you should have enough time to resolve this. Also, gather together you original loan/mortgage paperwork from closing. This should give you some info, too.

Keep us posted.

 

Yes contact your lender immediately and have them workout something. I work in the foreclosure dept for a lender and forclosures are stopped all the time because people call and want to work something out. There is a dept here called workout that does just that. The only other option you have is bankruptcy, or sell your house ASAP like f2fiddy said.

I hope you didn't grant deed your house to that guy. I have seen alot of scams where people say they will work with you to get you out of debt and stop the foreclosure but it never happens and then the people get the excess surplus funds once the house has been forclosed because they are on the grant deed.

 

Give us some numbers moonshineboy.

What is the house worth? What kind of equity do you have in it? If you're "upside down" you might be better off letting them foreclose, but it would certainly be wise to call the workout dept of the servicer to try to salvage the deal....they really don't want to own it. Bankruptcy is always a option of last resort.

 

not to be insensitive, I honestly am not but...

you spent 1500 to try to "stop" the forclosure... if you handed the bank 1500 bucks that would have gone a long way twards that... now your willing to put out 2500 for a lawyer.

give the bank 2500... not to be noesy but you and I are anonymous here sorta... how much does the bank want for back payment?

Ive gone thru the forclosure thing when I was racked up after an accident and 1500 buck would have ended the problem with the bank then and there, and another 2500 would have more than made me current.

I dont get why you have 2500 and 1500 to give, yet you dont give it to the bank..
hey no worries I was young and made mistakes too. its part of life.

I suggest you talk and talk and talk to the BANK and give the BANK every red cent you can scrape up (the aforementioned 2500 you were willing to give a lawyer?)

 

I worked as a collateral recovery agent for several years anything from houses to sofas, mostly repossessing autos. Let me tell you from the begginning I found no humor from taking items from people that were honest and hard working- but sometimes it just had to be done. When I first hired on I was told that the work was all high risk / scam artists/ and intentional frauders, which is was for the first several years. I quit when it become people like yourself that just got in a bad circumstance. I feel for you as I have been there , not once but three times with spouses. It does get better. Well to get to the point --do not run, avoid, lie, make up excuses or other when you deal with finance companies or the law, tell them straight out and try working with them, offer them what you can because believe it or not the last thing they want in most cases is that property back. They would rather you try paying every other month or alittler amount than get it back. Try calling them and seeing what deal you can work out on temporary basis. if you have not went to far. I have seen people kicked out of their houses and the next day let back in because they decided to work with the companies and not make any excuses- excuses will make them very unhappy at you and they will proceed no matter what if you do give them one. I wish you good luck it will work out, believe me- just sometimes life throws us a damn curve ball. I will also add there is a lot of good people that are in financial institutions and repo agents as well as bad- just like everyday people. I hope you experience gets alot better.

 

Problem for moonshineboy is the lender has already started the process. The lender has hired their lawyer, paid his retainer and has expended some serious dollars in processing this foreclosure. They are not going to write off this money because the lender is now willing to pay a little extra for a year or to to get caught up. Those negotiations would have worked back when the "past due" notices where coming in the mail but instead his wife hid them. Their perception is this guy is just ducking his obligation - leans out the sympathy factor real quick. The lender also knows there is a 70-90% chance that if they don't foreclose now - 6 or 8 months later they will be hiring the same lawyer to restart the process. What greatly increases the complications is if their loan has been sold - even contacting the current lein holder in that case will be extremely hard, then convincing them of your self worth after ignoring late notices for 6 months will be even harder.

If he isn't upside down and has fair credit other then the home loan the best thing to do is refinance with another bank to pay off the old loan and start fresh. A local lender might be willing to write a new loan even with his recent problems. If he is upside down let them have it or declare bankruptcy after speaking to a bankruptcy lawyer.

 

Contact your lender about a "loss mitigation loan" from H.U.D.
My house sat for 6 months with no payments being made, (long story...divorce)
Anyway, H.U.D. tacked the $5k the mortage was behind on the end of the mortgage (interest free)
Now I'm remarried, and refinanced the mortgage and it's all tied up and taken care of.
Good Luck

 

I work in the mortgage industry myself. You have gotten some good advice here, USE IT!

 

Sprocket has given you some very good advise, along with others.

At the worse you probably should file a Chapter 13 and try to pay everything off. Not Chapter 7.

At the best contact the mortgage company again and see if they will let you get back on track if you will pay whatever they have spent on the repo process.

If that fails, hire a lawyer (which you should have done instead of one of those scam companies that now has $1500 with no results) that handles consumer law and try to get him to work on the bank to reach a settlement allowing you to either keep the house or sell it with a Ch11 or Ch7 on your credit record.

If not sell the house, even if you have to sell the house at a loss and make it up by selling every other thing you have. Ch11 or Ch7 should be the last ditch effort if all the above does not work.

I hope everything works out, I know it is rough.

 

Thank you all!!! All of this info has given us new hope for getting back on track! I did not know that HUD offered any help, we'll look into that for sure.
I can say that I'm glad we didn't lie about any thing, my first thought was give them a big story and make them feel bad. But why do that there just doing there job, give them the truth.

Again thank you all so much, it means the world to us. I even smiled today, thought I forgot how to. You people rule!

Adam