If your mortgage is in a very large bank, you are wrong! Trying to find a solution to its deficiency is very complicated and the service is lousy. Your foreclosure problems have begun!
A friend was behind on her mortgage payments. She had owned her property for 37 years. The bank submitted the papers to place the property in receivership (foreclosure action) to the bank. The friend immediately called the bank to see if there was anything she could do. She developed a plan with the bank to reduce her payments and stuck to it for 13 months with adjusted, complete, and on-time payments. When she tried to make the fourteenth payment, the bank returned it.
One day, he received a notice that his house was scheduled for a “Sheriff Sale.” Baffled by the notice, she immediately called the bank and was told they didn’t need to file any more legal documents, as they had previously filed the necessary documents (before she made the arrangements) and Obama’s application for mortgage assistance had been denied. . What this means is that the shortfall, the difference between the existing mortgage payments and the adjusted payments while Obama’s mortgage assistance modification application was awaiting approval or rejection, was due in full when the application was denied. Example: Payment under existing mortgage, $1100; payment under Obama’s mortgage assistance, $700. Denial would mean that $400 X 13 or $5,200 would be paid immediately and there could be fees attached. During the 13 months, the bank never provided any statement showing her account. You were informed that when a mortgage is delinquent, the bank is not legally required to provide a statement.
The bank bought the property in the “Sheriff’s Sale”. Did you know that after a “Sheriff Sale” and confirmation of the sale, the bank (buyer) only has to give you 48 hours to vacate? Also, you will have all these strangers entering your property to complete various tasks on behalf of the lender/buyer (the bank).
People around me are losing their homes to foreclosure. It’s almost a repeat of the Great Depression. The exception is that in the Great Depression, saved money placed in banks was also lost. Today, bank accounts are insured by the FDIC.
What caused this dilemma? My thoughts on this are that the credit was “too easy”! On the lender side, the banks and mortgage companies were willing to be liable for too many mortgages. On the buyer’s side, lack of concern and understanding of how much debt was being taken on. No one planned to lose a job or other circumstances, not being able to meet mortgage payments. You always want the lowest possible payment at the lowest interest rate. I personally experienced this. When times are tough, you need to work closely with your lender. In 1946, a family member, who owned a home loan, sometimes only paid the interest on the mortgage due to hardship. They did not lose their property, but many years later, they paid for it. Could this be a solution to today’s foreclosure problems?
The Obama Making Home Affordable program (loan modification program) is a complete disaster. Those who really need the help are not getting it. A recent conversation with my banker revealed that seminars attended by financial clerks at mortgage lenders left them with a huge blank trying to figure out what the heck they’re supposed to do. Mortgage lending companies are less helpful to customers who have lost or will soon lose their homes. An application was denied because the owner’s income was too low. Isn’t that what should be considered a loan modification when reviewing need? Very few people have been approved under the Making Home Affordable program.
If you’re having trouble making your home loan payments, the best thing to do is visit your lender in person and suggest that you might be able to pay the interest on the loan for a period of time.
Obviously, not being able to pay your mortgage payment is a very serious situation and should be avoided at all costs, even to the point of putting the property up for sale. You won’t see a penny of your equity if you let your lender foreclose. It is also very important that your mortgage lender is local.