Posted on: 15th Mar, 2008 09:28 am
I have a mortgage with America's Servicing Center (which I was told is a part of Wells Forgo) and I am in foreclosure. I was in a repayment plan where I had to pay $3500 upfront, then make 6 payments of $900. After the 6 months, I was supposed to call back so my financial information could be reviewed and I could then get my mortgage modified. I paid the $3500 (by making several payday loans) and made each of the 6 monthly payments. However, I forgot to call back in Feb to give them my financial information again (the mortgage payments were being taken directly out of my checking account). I received a letter the first week of March advising me that I broke the payment plan and therefore they could not continue the plan. When I contacted them, I was advised they would review my file, because I had not broken my payment agreement (I did make the payments), however there was a laps in payments (no payment was made in Feb). I advised them that I could make the Feb and March payment at this time if need be. I was told to give them a couple of days and I would get a decision. When I contacted them this morning, I was told that I would have to start a new agreement (with a $4000 down payment and 6 payments of $1000+ for 6 months). I would have to make this payment by March 26th for the new plan to begin. There is no way I can get $4000 by March 26th!
Does anyone have any suggestions as to what I can do to keep my house? My credit is very poor and it will be impossible for me to make a loan to pay the $4000 or the $9000 that I am behind in. I don't want to sell my home. Would bankruptcy be an option at saving my home? I am totally lost as to what to do now. Please Help!
Does anyone have any suggestions as to what I can do to keep my house? My credit is very poor and it will be impossible for me to make a loan to pay the $4000 or the $9000 that I am behind in. I don't want to sell my home. Would bankruptcy be an option at saving my home? I am totally lost as to what to do now. Please Help!
thanks for the advice jessica. i can easily pay $1,000 a month for 3 yrs and at least this way, i can be sure that the foreclosure will stop. i feel if i pay asc the $4000 and 1,000/month, after 6 months, they will come up with some new catch and i would have to start it all over again.
speaking of asc, on tuesday someone name dana from the loss mitigation department called me and said that they need me to fax them a hardship letter and my last two paycheck stubs, because they are still considering me for a payment plan. i spoke to a friend about it and she told me to go ahead and fax the info to them. she said don't give them any "heads up" as to my plan to file bankruptcy. i don't know how long they are planning on stringing me along, but they will get a wide awakening as soon as the papers are filed. oh, btw, my attorney said he will have them put the insurance check on my back payments, to lower that amount. when i told him that i requested they do that and they told me no, he said, "they will do it." it feels so good to have someone with "power" on my side.
speaking of asc, on tuesday someone name dana from the loss mitigation department called me and said that they need me to fax them a hardship letter and my last two paycheck stubs, because they are still considering me for a payment plan. i spoke to a friend about it and she told me to go ahead and fax the info to them. she said don't give them any "heads up" as to my plan to file bankruptcy. i don't know how long they are planning on stringing me along, but they will get a wide awakening as soon as the papers are filed. oh, btw, my attorney said he will have them put the insurance check on my back payments, to lower that amount. when i told him that i requested they do that and they told me no, he said, "they will do it." it feels so good to have someone with "power" on my side.
well, that's good news michelle. the attorney knows how to negotiate with the lender so that they'll include your insurance check to lower your unpaid debt.
as for informing the lender about bankruptcy, i think they'll come to know when your trustee shows them the repayment plan. the lender has the right to object to such a proposed repayment plan. but don't inform them before you file. let your attorney/trustee decide when to inform your lender.
regarding the repayment plan, well, it will last for 3 years minimum and only after that the lender has the right to suggest an alternative plan or may be allow you to refinance so that you can pay off the entire mortgage and not just the dues.
the hardship letter can be sent to the lender; usually it is sent when you need to go for a short sale or deed-in-lieu or any other plans to get out of mortgage. so, you can forward a letter to the lender and wait to see what they have to suggest. even if they can't do anything because bk ch13 will start off soon, at least they can't blame you later on saying you haven't send them any hardship letter.
hope this helps...
god bless you.
samantha
as for informing the lender about bankruptcy, i think they'll come to know when your trustee shows them the repayment plan. the lender has the right to object to such a proposed repayment plan. but don't inform them before you file. let your attorney/trustee decide when to inform your lender.
regarding the repayment plan, well, it will last for 3 years minimum and only after that the lender has the right to suggest an alternative plan or may be allow you to refinance so that you can pay off the entire mortgage and not just the dues.
the hardship letter can be sent to the lender; usually it is sent when you need to go for a short sale or deed-in-lieu or any other plans to get out of mortgage. so, you can forward a letter to the lender and wait to see what they have to suggest. even if they can't do anything because bk ch13 will start off soon, at least they can't blame you later on saying you haven't send them any hardship letter.
hope this helps...
god bless you.
samantha
quick question to anyonw that knows the answer: when filing bankruptcy, do you continue to pay your mortgage in addition to the bankruptcy "fee" or is that included in the bankruptcy "fees?" i am just waiting for all the paperwork to be done so i can go sign it, but i was just wondering if anyone knew the answer before my appointment? when i first spoke to my attorney, that wasn't mentioned, but a foreclosure specialist i spoke to told me to check into it. does anyone know the answer?
Hi Michelle,
Welcome back.
I think you are filing chapter 13 rights. Then you will pay back the mortgage on a repayment plan. You will need to pay the Bankruptcy fees separately.
BTW have not taken help from a BK attorney?
Best of luck,
Larry
Welcome back.
I think you are filing chapter 13 rights. Then you will pay back the mortgage on a repayment plan. You will need to pay the Bankruptcy fees separately.
BTW have not taken help from a BK attorney?
Best of luck,
Larry
No, the mortgage dues and bankruptcy fees are separate items to be paid off.
Hi Michelle, I've been folllowing your situation and I'm glad to hear you have found a solution to your problem at ASC. They are one of the toughest loan servicers out there.
Yes, within your bankruptcy you will still need to make your mortgage payment and your trustee payment. BE SURE AND ASK YOUR ATTORNEY THAT THE $1,000 INCLUDES YOUR TRUSTTEE PAYMENT. I've run into countless people where the trustee payment was not included in the bankruptcy payment initially quoted and a trustee payment is typically $600-$1,000.
Once you file your bankruptcy the mortgage company will immediately attempt to find a way to have your bankruptcy lifted. The easiest way to allow them to do this is to miss a bankruptcy payment. So carefully plan your finances and under no circumstances be late on your bankruptcy and/or your trustee payments.
Best of luck :D
Yes, within your bankruptcy you will still need to make your mortgage payment and your trustee payment. BE SURE AND ASK YOUR ATTORNEY THAT THE $1,000 INCLUDES YOUR TRUSTTEE PAYMENT. I've run into countless people where the trustee payment was not included in the bankruptcy payment initially quoted and a trustee payment is typically $600-$1,000.
Once you file your bankruptcy the mortgage company will immediately attempt to find a way to have your bankruptcy lifted. The easiest way to allow them to do this is to miss a bankruptcy payment. So carefully plan your finances and under no circumstances be late on your bankruptcy and/or your trustee payments.
Best of luck :D
New development: Today I received an overnight delivery from ASC. It appears that he loan modification was approved. They are offering me payments of $674/month, with no down payment, starting on June 1, 2008. I am really torn as to what to do. On one hand, I was only filing bankruptcy to keep from losing my house, but now that ASC has modified my loan, if I agree to the modification, I won't lose my home. My biggest fear is that somewhere down the line, they spring something new on me and put me back in this same situation. Regardless of what I do, I will have the money taken straight out of my checking account, so I can be sure it's paid on time and every month. What do yall think?
Pros for Modification:
-Lower payments then bankruptcy
-Less then 10 yrs to improve my credit
-Receive insurance check and finish repairing home
-House no longer in foreclosure
-Most bad marks will be off my credit within 4 yrs
Cons for Modification:
-Still dealing with ASC (at least until I can get refinanced)
Pros of Bankruptcy:
-All debts (even charge offs) will be paid out in 3 yrs
-House won't be in foreclosure
-Insurance check will be applied to delinquent amount
Cons of Bankruptcy:
-$1000 for debts, + the $622 per month in mortgage payments
-Insurance check will be applied to delinquent amount
-Will stay on my credit report for 10 years
-No income tax refunds for 3 yrs
I am sure there are some pros and cons that I forgot, but those are the ones that popped into my head right now. As you can see, I have given this a lot of thought, but I am still not sure what to do (I have to make up my mind by mid-day tomorrow, so I can be sure to stop the sale scheduled for next week). Tomorrow morning I am going to my bankruptcy attorney's office and they are going to look over the modification paperwork, to make sure I won't get screwed if I sign the modification paperwork.
Pros for Modification:
-Lower payments then bankruptcy
-Less then 10 yrs to improve my credit
-Receive insurance check and finish repairing home
-House no longer in foreclosure
-Most bad marks will be off my credit within 4 yrs
Cons for Modification:
-Still dealing with ASC (at least until I can get refinanced)
Pros of Bankruptcy:
-All debts (even charge offs) will be paid out in 3 yrs
-House won't be in foreclosure
-Insurance check will be applied to delinquent amount
Cons of Bankruptcy:
-$1000 for debts, + the $622 per month in mortgage payments
-Insurance check will be applied to delinquent amount
-Will stay on my credit report for 10 years
-No income tax refunds for 3 yrs
I am sure there are some pros and cons that I forgot, but those are the ones that popped into my head right now. As you can see, I have given this a lot of thought, but I am still not sure what to do (I have to make up my mind by mid-day tomorrow, so I can be sure to stop the sale scheduled for next week). Tomorrow morning I am going to my bankruptcy attorney's office and they are going to look over the modification paperwork, to make sure I won't get screwed if I sign the modification paperwork.
Hi Michelle,
Great news!! Bankruptcy is only a last option I have dealt with many people who did a bankruptcy and regreted it! If they agreed to modify your loan do it! In addition, it will not take 4 years to repair your credit at most it should only take one year. Finally, congress is attempting to pass a bill that would allow people who have had or are having trouble with thier mortgages the ablility to refinance. So everything is working in your favor.
With the new plan are you on a fixed rate?
Great news!! Bankruptcy is only a last option I have dealt with many people who did a bankruptcy and regreted it! If they agreed to modify your loan do it! In addition, it will not take 4 years to repair your credit at most it should only take one year. Finally, congress is attempting to pass a bill that would allow people who have had or are having trouble with thier mortgages the ablility to refinance. So everything is working in your favor.
With the new plan are you on a fixed rate?
Sorry the privous post was me I forgot to log back in.
To answer your question cliff, yes I am still on a fixed rate (my same 6.125% interest rate that I started with). Also, I said that it would take about 4 yrs, because by then most of the bad items will be off of my credit report and I can hopefully get a good interest rate when I attempt to refinance.
on Thursday I went to my bankruptcy attorney and he looked over the loan modification paperwork and told me to sign it and go ahead and send it back. He said the modification was a good idea, but his only concern was that the paperwork would not be processed in time. I have a sale date of May 14th (Wednesday of next week) and he said since these mortgage companies do so many modifications, my paperwork may get lost in the shuffle. He told me that he would call the sheriff's dept on Tuesday morning and find out if the sheriff's sale was called off. If it isn't, he said he would go ahead and file my paperwork, that way the sale would stop with the bankruptcy. If the sale is called off, then he would not file my bankruptcy paperwork. So, Thursday afternoon, I sent the loan modification paperwork back (in the express mail envelope they sent me) and on Saturday morning, I will start bugging to make sure the paperwork is processed on time and the sale is stopped.
As soon as I find something else out, I wlll let yall know. Thanks so much for assisting me through this VERY rough time. I would have been totally lost without this forum.
on Thursday I went to my bankruptcy attorney and he looked over the loan modification paperwork and told me to sign it and go ahead and send it back. He said the modification was a good idea, but his only concern was that the paperwork would not be processed in time. I have a sale date of May 14th (Wednesday of next week) and he said since these mortgage companies do so many modifications, my paperwork may get lost in the shuffle. He told me that he would call the sheriff's dept on Tuesday morning and find out if the sheriff's sale was called off. If it isn't, he said he would go ahead and file my paperwork, that way the sale would stop with the bankruptcy. If the sale is called off, then he would not file my bankruptcy paperwork. So, Thursday afternoon, I sent the loan modification paperwork back (in the express mail envelope they sent me) and on Saturday morning, I will start bugging to make sure the paperwork is processed on time and the sale is stopped.
As soon as I find something else out, I wlll let yall know. Thanks so much for assisting me through this VERY rough time. I would have been totally lost without this forum.
I'm glad to here your attorney was able to review the modificaiton. Whoever is assigned to your case at your mortgage company should stop the foreclosure sale as soon as they receive your signed paperwork.
Keep us posted.
Keep us posted.
Today I found out that the sheriff's sale was cancelled by the mortgage company. So, I talked to my bankruptcy attorney and they are going to refund me some of the money I paid them (they did all the paperwork, only was waiting to file it with the courts). I learned a very valuable lesson from all this and I know never to miss a mortgage payment again (and if I do, to call the mortgage company ASAP). Thanks everyone for the advice I really appreciate it.
Hi michelle,
Glad to hear that the sheriff's sale was canceled by the mortgage company. So I hope you are going with the loan modification right? If so hope you be able to afford the payments.
It is really necessary for the borrowers how much they can afford. They take mortgage with high interest rate and in the midway they understand that they cannot afford and faces foreclosure.
Best of luck,
Larry
Glad to hear that the sheriff's sale was canceled by the mortgage company. So I hope you are going with the loan modification right? If so hope you be able to afford the payments.
It is really necessary for the borrowers how much they can afford. They take mortgage with high interest rate and in the midway they understand that they cannot afford and faces foreclosure.
Best of luck,
Larry
My whole problem wasn't that I couldn't afford the payments, it was mismanagement and then when we had problems after the hurricanes, I fell far behind. I promised myself that I would NEVER let that happen again. My interest rate isn't high (6.12%) and my payments only went up by $50, which I can still afford. I am gonna go though credit counseling just to make sure I stay on the right track.
Dealing with foreclosure was very stressful and I wish everyone who is still dealing with it, lots of luck. Thanks again for all the advice.
Dealing with foreclosure was very stressful and I wish everyone who is still dealing with it, lots of luck. Thanks again for all the advice.