Posted: Sun May 04, 2008 6:44 am Post subject: Bank foreclosure for 4 missed payments
I have been in earnest trying to bring my mortgage current since my discharged BK 7, Sept 2007. Since the disc I had been paying extra to get the payments caught up. It is a good loan -home equity loan with a low fixed rate-however problems with my car costing me over $5000 in between Feb and March 2008 prevented me from making payments on the loan. the expense had to be paid other I would have had no way to get to work. I stayed in contact with the collections as best as possible (they started calling me everyday at work. Finally in Early March 08 I called for loss mitigation. I tried to explain to the gal what was happening. She told me there wasnt much they could do, so I tried to make another payment arrangement. As it turns out- she was just another collections agent. Now my account has gone to foreclosure management and they refuse to work with me so I can get this caught up. They want the full amount due and that is close to impossible right now. I am already working 2 jobs. I was never even offered a repayment program. I did not know that it is the collections rep job to block calls to Loss Mitigation.!! They said if I cant pay the full due they will send the file to their attorney.. I have asked 3 times to work out a repayment plan and they refuse. I dont know what to do.
They said that because an equity loan is a consumer loan they are not subject to federal guidelines. Everyone that has heard this thinks the statement is ridiculous. I am exhausted and worried.
I suppose you'd like to keep the home. I too feel what the loss mitigation representative has said is ridiculous. It seems that they don't want to work with you and help you repay the loan. May be when they send your loan file to the attorney, the latter would suggest a short sale or loan modification. Have they said anything as to what options they want you to go for? _________________ Procrastination is the enemy of your financial sucess
Posted: Mon May 05, 2008 3:55 am Post subject: RE: trying to pay mortgage after debts discharged in ch7
Hi pamelarogers,
Welcome to our forums.
I don't think it's any collection agent is involved here. You don't usually come across collection activities in mortgage. In such a case, the lender either wants to foreclose or work out with you and provide a repayment plan or ask you to go for short sale or deed-in-lieu.
What I would like to ask is, did you include the mortgage in ch7? or is it that you included the missed payments only in the bankruptcy? I think that's what you did but need to be sure of it.
Now if you have included only the missed payments along with other debts, then I think it's quite obvious for the bank to ask for the remaining payments. But they could have offered you a repayment plan and if that's possible, then even a loan modoifcation could have served your purpose.
Why not call them up and ask for a loan modification. See what they have to say now. Have you ever applied for mortgage insurance or PMI? Such a policy can help you at this hour. I suggest you talk to a mortgage attorney and take his help in negotiating with the bank for sale of the property or may be a deed-in-lieu if you don't have any insurance to cover your loan.
If you cannot make the payments and at the same time the bank is not working with you then go for short sale. That will affect your credit lesser than foreclosure. Once the mortgage is foreclosed you will not only have to pay the deficiency judgment but you will have a huge negative effect on your credit report.
pamelarogers
