Posted on: 07th Aug, 2010 02:16 pm
My husband & I divorced last year. He is on the mortgage but signed the deed over to me. The mortgage co has offered me a loan mod, fixed rate, payment lowered from $2400 to $1800. While I was gathering required paperwork, they filed a foreclosure with my County. However, the attorney handling the foreclosure has been notified by mortgage co to hold off, that they are working on the modification. I have a decent retirement income and can afford the $1800 payment. I have several questions? 1) Why did they file foreclosure papers while we were working on this plan? 2) although they said if this plan doesn't work, I may qualify for other govt programs due to divorce, illness, death in family, change in income-- Is this true? 3) Can they still proceed with foreclosure? 4) Their first question to me was do I want to keep the house & I said yes. Why that question? 5) Should a consult someone to represent me & if so, who? 6) Does any of this effect my ex-husband & will I need his OK? They have been working on this for approx 6 mos & I do not hear anything from them, unless I call-- they say they are backedup. Not to worry. Thank you. Nad953
Welcome rndurkin,
May be there have been some kind of mis-communication and thus the lender's attorney filed foreclosure. However, the foreclosure proceedings have been kept on hold as they are considering a loan modification. As the lender is considering a loan modification for you, he won't go ahead with the foreclosure immediately.
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4) Their first question to me was do I want to keep the house & I said yes. Why that question?" If you did not want to keep the property, then the lender may have either offered you a deed in lieu of foreclosure or a short sale.
It is better to negotiate with a lender yourself rather than consulting a lawyer in this regard. If your ex-husband is not on the mortgage or on the property, then you won't need to inform him or take his permission regarding modification.
May be there have been some kind of mis-communication and thus the lender's attorney filed foreclosure. However, the foreclosure proceedings have been kept on hold as they are considering a loan modification. As the lender is considering a loan modification for you, he won't go ahead with the foreclosure immediately.
"
4) Their first question to me was do I want to keep the house & I said yes. Why that question?" If you did not want to keep the property, then the lender may have either offered you a deed in lieu of foreclosure or a short sale.
It is better to negotiate with a lender yourself rather than consulting a lawyer in this regard. If your ex-husband is not on the mortgage or on the property, then you won't need to inform him or take his permission regarding modification.
Thank you for answering all my questions. It gives me some peace of mind knowing I am going down the right path for now.