Be Wary of Mortgage Lenders Negotiating During Foreclosure
Recently, I had a client that filed a Chapter 13 Bankruptcy to stop a foreclosure sale and save her home. During the first month after filing, she told me that the mortgage company was willing to negotiate new payment terms, but only if she got out of bankruptcy. I told her that mortgage companies are far from reliable when it comes to these sorts of situations, but she was set on giving it a chance.
As such, we voluntarily dismissed her bankruptcy, which is always an option if you file. Low and behold, the negotiations with the mortgage company were wrought full of delays. In the meanwhile, the mortgage company re-foreclosed on her property and set up a new sheriff’s sale date. The negotiations continued to drag on as the foreclosure sale date was nearing. Finally, this client was forced to re-file for bankruptcy because the mortgage lender never finalized new payment terms, and the sheriff sale date was only days away. The client ended up having to pay two separate filing fees.
The moral of the story is two-fold. First, it is important to realize that mortgage companies are going to do what is in their best interests, so never assume that they are going to go out of their way to help you. Second, bankruptcy, twice, saved this clients home and it can do the same for you. If you are facing a foreclosure, Chapter 13 bankruptcy provides you with an option for financial relief, while saving your home.
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2 Comments
8 References
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Response: michigan real estateFree michigan real estate information packet. -
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Response: lenderExceptional lender items.
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Response: avoid bankruptcyavoid bankruptcy multimedia news.
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Response: debt reliefdebt relief information and advices.
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Response: attorneyattorney straightdforward selection.
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Response: lenderslenders opportunity.
Reader Comments (2)
Lenders and how we get them to listen!
As many borrowers know from their own experience is that the resistance from
their lender is high and just getting through to the appropriate person is very
difficult. However, when MyRecast is
involved it seems as if the calls start to get answered and the letters are
responded to. On our MyRecast Team we have the best HUD advisors involved, state
wide attorney representation and the BEST sub-prime underwriters to QC / and
audit the original files.
We use powerful laws like the Truth in Lending Act (TILA) and the Real Estate
and Settlement Procedures Act (RESPA) to bring lenders to their knees. So,
naturally, the lenders will be very amicable to working and negotiating with
MyRecast Team for a modification of the note and work out to more
affordable terms to avoid costly
litigation. Not to mention your credit and
how this will affect your ability in the future.
Jackie
nice work, guy