posted on Jun, 15 2012 @ 12:45 AM
That's a terrible position to be in, I don't know how it works in the US so can't really comment on regulations for mortgage lenders, but in 2009
the FSA here in the UK reallly clamped down on banks who lend to people who can't afford a mortgage in the first place, stopping the profit from
arrears and also making them more liable for any customer who comes in to financial difficulty and whom can't keep up repayments i.e shouldn't have
been given a mortgage or loan in the first place. I don't believe you come under any of the mentioned FSA rulings, but I know people who have got in
to arrears and the banks have been very good about it where before the banks were quite ruthless over here, now they reduce payment where possible and
also as all but one of the people I know are people who have lost their jobs, the government paid for the interest on the mortgage as well. The only
counter to this is that getting a mortgage now is near impossible unless you have a massive deposit and perfect credit rating, although I believe that
this is even being slightly relaxed as of late.
As much as I moan about the UK, the only way this type of thing would've happened here is through dealing with one of the back alley loan shark
mortgage lenders. However, the beating down of the working men and women is probably still similar in other ways to America.
As a working homeowner myself and someone who has been in financial difficulty in the past, I can certainly half imagine what you're going through.
The positive is that you seem to have a strong case in court, the negative is obviously you have to lose your house to get there. I'm not going to
offer advice on what practical to do, that would be best for the posters in America or may be in particular in your state to comment on, but I will
say don't ever fold and back down, as that is what all banks hope you will do. They will threaten everything they can, but often the cost and
legalities of carrying out their threats make the probability of such action negligible.
I wish you all the best of luck, it's time like these I hope you can turn to your family and friends, in particular your brother, for support.