Mortgage Company odd occurance

Some friends of mine has been having issues with their mortgage company and there is something odd about what is going on and I am throwing this out there to see what others think about what may be going on.

My friends are some of the people that try to be productive members of society and do their part. Unfortunately, the economy has not been entirely fair to them. Being as responsible as they can be, they could look at their current financial situation and look to the future and see that they are sinking financially. This started a few years ago and one of the first things they tried was to get a loan modification and because they did not fit a profile the modification was rejected. Over the course of time, they have made several contacts with the mortgage company to help them, but they would not ever budge. As time progressed, it got harder and harder to make their full payment. All the while, kept asking for the mortgage company to help. Then, it got to the point where they could not make their full payment and reduced it to an amount they could afford, but felt they at least should do what they could and still paid what they could afford, at least it was something they thought.

Then the day came when the mortgage company filed foreclosure proceedings and filed (I forgot what it is called) paperwork that stated they are seeking full restitution and was basically a document that said if they did not respond to the letter that it would default and would automatically award them the amount requested. So, my friend getting pretty upset with the mortgage company for doing this even when they began asking for help at least a year in advance, trying to be proactive in resolving the growing financial problems they were in fired off a fairly indignant reply letter, just as they requested. In a nutshell, the letter basically said that they have tried to get help but was always rejected, and also accused them of being inept and incompetent in their business practices and also requested a copy of their entire portfolio regarding the account. My friends told me that when at times when discussing the loan, the mortgage company did not appear to know what type of loan it was to begin with(VA, FHA, etc). The request for a copy of the entire file to this day has never been fulfilled(possible RESPA situation here). Then, when it was time to make the next payment, he went to the bank and payment was not accepted unless it was the full amount to bring the account current.

At that point, they said to hell with it and at this point they could really care less if they keep the house or not. So, now, instead of trying to make the payment, they take that money and stash it away, as they are certain they will need it once they eventually loose their house.

But, the odd thing is and ever since they fired off that heated letter in response to their filing for foreclosure and quit making payments nothing has ever been said since, no letters, no collection calls, nothing. Why would a mortgage company seem to just go silent and drop it? Right or wrong, do they not want their money? Meanwhile my friends are just creating themselves a nice little savings by not making their payment.

Seems odd to me, what is the mortgage company up to? Any thoughts?

reply to post by Skewed


google "robo signers" and you'll see what's going on.

Also have your friends search for their names in your local county court house website in the civil section at least one a week, that way, if anything is going on they will know right away.

They can also have the mortgage bank locate the NOTE (Which I BET you they don't have)


The word mortgage is a French word meaning "death" and gage means "pledge or agreement" So the meaning of the work Mortgage is an "agreement till death." or "DEATH AGREEMENT

reply to post by phishyblankwaters


Interesting. But, still they drop it? I wonder when they will decide to come back around, I do not see a bank dropping anything, unless my friends actually have a case and they do not want to rock the boat...yet....maybe? I think it has been six months since they made their last payment. There is an agenda here, we just cannot figure out what it is.

Originally posted by greenovni

They can also have the mortgage bank locate the NOTE (Which I BET you they don't have)

Possibly the reason why they have never received a copy of the mortgage file?

reply to post by Skewed


Might not be a bad idea for them to use a bit of the money they are saving to hire an attorney. With all the monkeyshines going on concerning mortgages and "lost" notes, they may even be able to obtain free and clear title to the house, depending on the circumstances.

An attorney can be a big expense, but may end up saving them in the end. At the least, have one look over the situation and give them an opinion as to how to proceed.

File bankruptcy and the house will go into a pending status where NOTHING can be done by the mortgage company until resolved. Worked for a friend of mine. The reason they are taking their time is to process the paperwork. I would have your friend check online court records to see if anything was filed, and with the county recorderd office to see what has been filed against the property. Same situation with my friend. Did not hear anything for like 6 months and then the paperwork started to flow in, people coming by to take pictures, and then the final order served by the Sheriff to leave. The whole thing probably took over half a year... if your buddy wants to keep kicking the can down the street and stay in there as long as possible tie them up in court, via bankruptcy. Courts are so backed up its not even funny... all debts get frozen until some arbitration and payment plan, etc can be reached. Plus it may wipe out most of his debt...

reply to post by pityocamptes


Funny you mention that. Their house is in need of some repair and is in a little rough shape and they received a letter from the city stating that they must repair it or the city will freeze the property until it is fixed before it can be sold and transferred.

They sent a reply to the effect of they would like to repair the house and explained that they could not afford to fix the house and that foreclosure proceedings have been filed. And said they would probably end up losing the house and it just did not make sense to repair something they were ultimately going to lose as it was. They also went on to explain that the suspicious timing of the letter from the city made it appear to be instigated by the mortgage company to get them to repair the house before it was foreclosed on. So, by now I am assuming the city has froze their property due to them not making the repairs. I wonder what kind of situation that leaves the mortgage company in. It seems that maybe the city could be in someways protecting them.

Does the sheriff(or whomever) actually deliver an eviction notice or do they have the opportunity to go to court and let a judge decide with all parties present and everyone giving their side of the story?

reply to post by VariableConstant



I have mentioned that to them as there seems to me something a little strange here, maybe not. Their reply to me was "If I could afford a damn lawyer, I could afford to make the house payment and would not be in this situation to begin with."

I see their logic however. I agree, at least let one look over the case never the less.

Originally posted by Skewed
reply to post by pityocamptes

 

Funny you mention that. Their house is in need of some repair and is in a little rough shape and they received a letter from the city stating that they must repair it or the city will freeze the property until it is fixed before it can be sold and transferred.

They sent a reply to the effect of they would like to repair the house and explained that they could not afford to fix the house and that foreclosure proceedings have been filed. And said they would probably end up losing the house and it just did not make sense to repair something they were ultimately going to lose as it was. They also went on to explain that the suspicious timing of the letter from the city made it appear to be instigated by the mortgage company to get them to repair the house before it was foreclosed on. So, by now I am assuming the city has froze their property due to them not making the repairs. I wonder what kind of situation that leaves the mortgage company in. It seems that maybe the city could be in someways protecting them.

Does the sheriff(or whomever) actually deliver an eviction notice or do they have the opportunity to go to court and let a judge decide with all parties present and everyone giving their side of the story?

edit on 23-6-2011 by Skewed because: (no reason given)

The hearing notice is a farse, and most likely they will not be notified "by accident", mistake, and the banks attorney will be the only one in court talking to the judge and since they are not there its a default on the owner and the bank wins. Yes the notice is a tactic by the bank - same thing happened to my buddy. If they can afford it get a lawyer, if they cannot most court houses offer free legal advice and show you how to file the correct paperwork. Hell by countering the suit with demands to see the ORIGINAL SIGNED INKED documents, they may in fact buy themselves a long time before eviction. Usually they will get a notice in the mail (after all proceedings conclude) that they have X amount of days to leave. If they do not then the Sheriff will show up to make sure the occupants are escorted out. My buddy ended up leaving a couple of days before the mandated day...

If they do not clean up the yard or house I can tell you that the city will file an injunction against the property (lien) and or multiple fines - which may or may not get turned over to law enforcement at some future junction (depending on city/state codes) wherein they show up to arrest them for FAILURE to pay the fine, or issue a warrant for arrest - most likely misdeamenor.

I was talking to a fellow the other day who runs a foreclosure preservation company and he even said that business is slumping down. When asked why, he said the banks are no longer paying to have house maintained because the banks cannot afford it!!! He also said that what he has heard through the grapevine is that the feds are going to dump shadow inventory here soon as freddie and fannie can no longer afford the property or bailout the banks via home receivership. He also made an interesting point that lots of people are tearing up the homes, and making it so that they cannot ever meet code - one example was cutting water and plumbing pipes at floor level. City code says you cannot have a seem within the structure slab, which means they have no idea how to fix these issues. Regardless, I would definately see what the bank is up to, at least call the court house and see if anything was filed against them.

Originally posted by pityocamptes
He also said that what he has heard through the grapevine is that the feds are going to dump shadow inventory here soon as freddie and fannie can no longer afford the property or bailout the banks via home receivership.

Can you point me to where I can read more about this or explain what that actually means?

Shadow inventory = the MILLIONS of homes that have been foreclosed on (but youdon't know because they do not show up on any NAR/realtor home for sale list) that are on the banks books. They are going to dump them, here shortly from what this guy was saying, which means home values will go down further in flames, glutting the market with TONS of homes... So if you have cash saved up, you literally will get a house at pennies on the dollar.

Since the robo-signing incident, judges in some states have actually started doing their job and disallowing questionable foreclosures. The 6-month timing would be about right. Don't know what state your friend is in but it can make a BIG difference.

Best site I've see for trying to do some of the homework yourself:

4closurefraud.org...

If you wander around the site, they have detailed information on how to check the county records on-line to see what's going on with the property. There is also a lot of information on which states are looking out more for the homeowner, which ones are not. These guys have been on this since the beginning and have accumulated a lot of knowledge.