Posted on: 01st Jul, 2011 07:17 am
Can a bank (BAC) dictate the terms of a deed in lieu? We live in FL. Our loan was through First Franklin Loan Services (ML). They filed foreclosure on 12/31/2007. BAC took over ML and our mortgage, after we were a couple years into the foreclosure process. We applied for the HAMP prgram and were denied. They will not work with on a loan mod because they claim they can not put the arrearages on the back side, which are substantial now. In the meantime, First Franklin filed to cancel the foreclosure and it was approved by the court. BAC has told us that in order to do a deed in lieu, we would need to sign an agreement that states that they can and would pursue a dificency judgment against us. After reading the info on your site, I'm confused. I'm tired of the game playing. First Franklin scheduled an auction 4 times and canceled it 4 times and now BAC doesn't seem to understand the history of our account.
You would want to get current any way you can on the loan. Florida allows the deficiency judgement collection to pursue debtor for 20 years and attach it to any real property you own. Have you contacted an attorney to consult your rights?
We can't bring it current at this point. It's gone on for too long. When First Franklin first filed foreclosure, we couldn't find a foreclosure attorney. At the time all we could find were loan mod firms and our 20 days expired - FL only allows you 20 days to respond. We appeared in court, but it didn't matter. First Franklin just recently had the foreclosure and default judgment canceled. All we can do is try to fight a new foreclosure case when BAC files. FL court now requires all new foreclosure cases to go into mediation. I don't know if we will walk away with a loan mod, because they have already told us that they will not put the arrearages on the back side of the loan. Unfortunately, the history of our loan did not seem to follow our account to BAC. We did talk to a bankruptcy attorney who had advised us to file bankruptcy and do a cram down. But I would only consider this as an absolute last resort. I don't see anything good or positive happening for us either way.
All of your records must be transferred to the new servicer. So if you are saying that they lost some of your payment history, and you know that you made those payments, send in to BOFA a Qualified Written Request to dispute the discrepancy. You can also request that the lender show you the promissory note, many lenders cannot produce the note. Some have taken lender to court and were awarded their home free and clear by the judge. Google promissory note and see what stories are out there. If you think the lender made an error, get them to provide the proof that it was / was not an error.. hope you the best