Posted: Tue May 05, 2009 7:58 am Post subject: HELP! Mortgage mess
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My ex and I (unmarried, but together for 6 years and with child) own a home. He is court ordered to pay 1/2 of mortgage. He hasn't done it. I have. As of November of 2008, National City mortgage stopped accepting my half payments. They returned my checks to him (because he kept changing address to his new address). I stopped making the payments (per my attorney who advises me to file BK!) as of January. I filed a workout packet in March with NCM (for retention because ex would not sign the listing agreement) and I followed-up every week, but was told "it was being looked at by a negotiator" and would take 8-10 weeks.
When I called them last Friday, they said my workout packet was cancelled bc my ex has filed for chapter 7 BK. He indicated that he wants to "surrender" this home. I spoke with the attorney for NCM, and he indicated everything is "on a stay." He said that once that was lifted, NCM would allow me to start options again with loss mitigation.
Does this sound right? If this stay takes weeks to be lifted, then the mortgage will have been behind 6 months! Is it likely that NCM will still work with me on this debt? I do not want to file BK.
The house is finally on the market again (he was again court ordered to sign the listing agreement). If I continue to show the house and I get a lowball offer, can NCM short sale the property while under this stay/while he is in BK?
When we bought the house, it was financed with NCM for 200K, and a second installement loan for 38K through National City bank to avoid PMI. How do I juggle these two banks?
Do I have any rights to avoid the home being surrendered? Does that mean it will be forced into foreclosure?
I have another property that was a rental property, but has been unoccupied for 1 year. I have continued to pay the mortgage there bc I thought my sons and I would move there once this house sold. What will happen to the equity I have in that property? Should I try to sell it really quickly?
I am freaking out, needless to say.
As your ex had filed for bankruptcy, the court has issued an automatic stay upon the creditors. The creditors won't be able to sue him for any of the debts until this stay is lifted. Once the automatic stay is lifted, the lender will definitely work with you so that you can apply for a loan modification. The lender will not be able to foreclose or short sale the property if the court has issued an automatic stay.
If the mortgage dues are not paid then the lender will have the right to foreclose the property. But if your ex reaffirms the mortgage and starts making the payments, then the lender won't foreclose it. If the property is foreclosed upon and if you are unable to pay the deficient amount resulting from the sale of the property, then the lender may place lien on the rental property. However, there are chances that the lender may also forgive the deficient amount. _________________ Procrastination is the enemy of your financial success
Thanks for replying. He will not pay anything. The debt will be left to me. So, I am trying to figure out how I can best handle this. Should I try to sell the rental property very quickly, so that I will have cash to pay the current morgage company?
How long does this automatic stay last?
I would like to try to refinance the mortgage. My credit was over 700 prior to these late house payments. Will any mortgage companies look at all my documentation that proves I made my half of the house payments (through the court order), in order to approve me to refi the house?
What if I have cash in hand from the sale of the other property? Does that help me to get it refinanced?
Yes, you can sell off the rental property so that you can pay off the cash to the mortgage company. The automatic stay will last unless the case is over. As the mortgage is defaulted, it would be difficult for you to refinance it. Lenders generally do not agree to refinance it if you have defaulted your payments. You can try to bring the mortgage payments current and then try for a refinance.
Thanks
Guest
Posted: Thu May 07, 2009 2:58 am Post subject: RE :
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Hi,
After a few promising weeks, it seems the mortgage industry is back in its negative spiral of losses. Financial giant JPMorgan Chase has announced in a report that banks may lose another $400 billion to bad loans, most of them from defaulting mortgages. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
Posted: Thu May 07, 2009 3:01 am Post subject: RE : HELP! Mortgage mess
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Hi,
The company blames the losses on the puts much of the blame on the spate of mortgage defaults and the resulting decline in the derivative values that hedged against risks in interest rates. Another leading mortgager, Fannie Mae, reported a smaller but still significant loss of about $25.2 billion for the last quarter.
Thanks
[Link deleted as per forum rules. Thanks.] _________________ Mortgage Loan Modification
CDLoanmod.com
800 738 1170
I just got the papers from National City yesterday regarding their attempts to get the automatic stay lifted so they can proceed on this home.
I would like to try to refinance the mortgage. My credit was 780 prior to these late house payments. Will any mortgage companies look at all my documentation that proves I made my half of the house payments (through the court order), in order to approve me to refi the house?
What if I have cash in hand from the sale of the other property? Does that help me to get it refinanced? I am a student, work a few hours per week at the university, but I get survivor's benefits bc my husband passed away several years ago.
As the property is already in bankruptcy, I don't think lenders would refinance it though you made half of the monthly payments. Cash from the sale of other property won't help you much in my opinion.
National City can apply to get the automatic stay lifted. You need to contact your bankruptcy attorney and discuss your options with him so that you can save the property. _________________ Procrastination is the enemy of your financial success
OK. So I am bumping this up AGAIN! Fast forward many months. I worked closely with the primary mortgage company and my advocate advised me to obtain a quit claim deed and send a copy in once it is signed. My attorney is working on this with my ex's attorney, but my ex is (of course) still not cooperating.
My mortgage company advised me last week that I was approved for a loan mod through HAMP. They said paperwork would arrive in 7-10 days.
I called after 3 days to let them know (again) that bc my ex's name is the first on docs from them, to please send the docs via email. The rep I spoke with said that he has discovered that EVEN IF I HAVE A QUIT CLAIM DEED, I do not qualify for HAMP bc I need this signature.
He has indicated in his BK that he "wishes to surrender his interest in the property."
What legal docs do I need to obtain to make this loan mod work? I have cleared my schedule to make calls tomorrow, but I was hoping people here may have some ideas. BTW, the attorney fees to get the quit claim deed are already at 2k.
This is the hardest thing I have ever been through. Please help me with your best advice. Thanks in advance.
You need to contact your attorney in this regard. As the property is included in bankruptcy it would be difficult to get it transferred in your name. I don't think the lenders would be ready to give you a loan modification unless the bankruptcy is discharged.
Sussane
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