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can you have a breach of contract on mortgage???

Posted on: 21st Aug, 2008 08:04 pm
I know this is going to be confusing, it is for me, but I hope someone understands what I am talking about and if they have any answers. My husband & I bought a home in 2001 from a finance company. We were first time buyers and very naive. The agreement was signed in a rush, we could only sign it on a Saturday, so we were rushed through the process, no time to ask questions, which I should have been suspicious about to begin with. My husband worked out of town and came home one weekend a month. We took out credit life and credit disability insurance, or so we thought. My husband became seriously ill in 2006 and became disabled. Finance company calls, says no problem, house payment is covered. About six months into his illness, I was told that the disability insurance was only good for two years. I questioned that, and they told me that the insurance company had changed. It was a high stress time, as my hubby was in the hospital six months. After things became less stressful, I started questioning the manager and she would get really nasty with me. we were only paid a portion of our house payment. To get to the point, we were getting a disability payment from our equity line of credit. We were told we didn't take out credit disability & credit life on our mortgage. After making several calls to several offices here is what I found out. Trust me I was given the run around big time. Took many hours and days to get an answer. I was informed that we had indeed taken the insurance out on our mortgage, but the information had not been "uploaded" into the computer. I also was told that we didn't take out disability insurance on our equity line of credit (so where did that check come from)?I was given quite a few other excuses in the meantime.When we took out the loan on our home, we were not told how the bill was computed, so I assumed the insurance was added into the bill, (I know I am not smart when it comes to home loans)!! I spoke with an agency about some of this, although we didn't have all the information available. They asked us about a settlement sheet, I in turn asked the finance company and they got really nasty with me. Said they would start foreclosure proceedings immediately and what day would I like to move out. We were 1/2 payment behind at that time. I never received a settlement sheet, and anytime I questioned the finance company about any of this I was intimidated with the threat of foreclosure. Also if you have a fixed mortgage rate, how is it that your payment can go up. They couldn't give me that answer either. And if you have read this far, THANXS !! you are great. Hope someone may have some type of advice or information. Wondering if anyone has run across this before.
Hi aglick.

I can understand your situation and am really sorry to hear about your condition.

How much do you earn? Do you have a good credit? Tell us about the interest rate that you are paying. BTW if this is FRM then the rate should not increase.

The lender cannot give the threat of foreclosure and it will not help them either.

Best of luck,
Larry
Posted on: 22nd Aug, 2008 02:40 am
Larry, thanks for your response. My husband is now on disability, after an 18 month wait. I quit work when he became ill and have now hurt my back and trying everything to get well enough to return to work. We did have excellent credit until my husbands illness, then we had major medical bills, (he was in the hospital for a little over 5 months, one of those months in ICU and then had to have a prosthetic, hospitals and legs don't come cheap). With no income we used our savings up and couldn't make payments on a couple of credit cards. I never realized how one major illness could turn your life upside down, physically, mentally and financially. So no our credit isn't the greatest right now but we are trying to work on it. I am thinking our interest rate is 6.23%. Yesterday though we received a notice about our draw period is expiring in November, which I am assuming is on a HELOC, which we haven't touched in 4 years. Although we do owe a small amount on it, I am hoping I have no concerns there. But this place is so sneaky, that I am not sure what to expect. I think this is all right on the edge of predatory lending practices, but can't say for sure. Then there are other issues I am worried about, like the balloon payment after a certain period. I look back now and see all the mistakes we made, but I can't change it now. I am just curious about the insurance not being uploaded. I had never heard of something like that before, and so who is responsible in that case.
Posted on: 24th Aug, 2008 07:40 pm
Hi aglick,

welcome back.

Did you notice that you've gotten logged out while posting? you could earn dollars by posting with your id. Anyway, what I understand from your post is, you're worried about the insurance premiums not being added to your monthly mortgage payment. Is that so? also, there has been an increase in your monthly payment. Possibly it's because your property taxes or insurance premiums have increased.

I feel you need to call up the insurance company and ask them if they're receiving the premiums through escrow. Your lender is supposed to send them the premiums at regular intervals from the cash deposited into the escrow.

Thanks.
Posted on: 25th Aug, 2008 01:06 am
I didn't realize I was logged out. Anyway, my problem is that when we bought our home we took out credit disability and credit life insurance. Now since my husband is disabled they say we did indeed take it out when we signed the papers, but the company itself did not upload the information into the file, so therefore we have no coverage. We don't have an escrow so I know that can't be the case either. We pay our insurance and property tax out of our pocket. I know its confusing and I can't really explain it correctly.
Posted on: 25th Aug, 2008 08:07 am
Posted on: 26th Aug, 2008 03:26 am
what does a notice of breach letter have to include for the state of michigan?
Posted on: 17th Mar, 2010 02:02 pm
Hi Guest,

You can contact a Michigan lawyer who can help you in drafting a notice of breach. You may also check out the page given below for a sample notice of breach letter:
"http://forms.lawguru.com/michigan-notice-of-breach-of-contract_p.html"

Thanks
Posted on: 18th Mar, 2010 12:03 am
My husband and I started working with a mortgage company approximately on September 15, 2010. It took them a month before they got the order in to get the property appraised. Then when we started working with a processing agent. They gave us a packet from the company and told us not to return it. Only, to find, the processor was taking the packet apart sending it one page a time every 3 days. They wanted us to print the document, complete it, and fax it to them. Finally, after 3 weeks and 3 pages later. We completed the packet that they mailed us in the beginning. I Completed it and mailed it back. Trying to help speed up the process. Anytime, the mortgage company asked for anything we provided it that day or two days later. My husband works out of town. So for his signature. We had to wait for him to be back in town. They stated they had a problem verifying my husband's income. Which we provided them every document possible. We gave them:w2s, recent pay stubs, bank statements, a salary key, workline information, a document from my husband's supervisor, union agreement. They even held the mortgage up waiting until the end of December to see what my huband's final year to date was. We were also promised several times we were ready to close 6 times. They even called the tile company and sent them instructions to close and gave them the okay to close. My husband and the sellers took off work thinking we were closing only for them to call it off. They went as far as wanting my husband's union agreement to wanting a letter from his union stating his pay. Finally, this past Friday, were were told we were ready to close. We asked them if this was finally ready and they promised we're we're ready to close. They contacted the title company had them reprepared closing statement. All parties took off work. Closing was suppose to be this past Monday at 4. Over the weekend the seller moved and we packed our entire house. Only to find, Monday at 11:30, the day of closin, our processor called telling us we could not close because our credit report had expired this week and they ran it to find out credit dropped due to 3 medical bills. Therefore, they could not finance us! We understand it is our duty to keep
Our credit up, but they waiting almost 5 months to close us and if the mortgage company got this done in a timely manner the credit rate wouldn't of expired. Keep in mind our processor took 3 weeks of vaction throughout this process. We tried contacting managers to help. They week before the final close she was out sick. And the managers stated they could not update us while she was gone. With the facts provided, did the mortgage company breach the contract, because they they did not complete this process in a timely matter letting our rate expire, after setting closing?
Posted on: 24th Jan, 2012 10:52 pm
Hi Rachelle,

Your query has been replied to in the given page:
http://www.mortgagefit.com/inprocess/about53850.html#282781

Take a look at it. I hope it will help you.

Thanks
Posted on: 25th Jan, 2012 01:57 am
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