Can Our Bank???

[Ron1347]

What is the name of your state (Michigan)?

Just a quick simple question. I am behind now on my home mortgage. I have no intent of catching it up. In fact, I intend to just let my home go to the mortgage company. My mortgage Company happens also to be my Bank (where I have two checking accounts with them). Can my Bank go into my checking accounts and take monies from me in order to collect what I owe them. Doing so without my consent nor forwarning that they will be doing so? The reason I ask....I need to know whether I should close my accounts with my Bank in order to prevent such a thing happening. Thank you for any insight. Most appreciated!

[Stevef]

Originally Posted by Ron1347

What is the name of your state (Michigan)?

Just a quick simple question. I am behind now on my home mortgage. I have no intent of catching it up. In fact, I intend to just let my home go to the mortgage company. My mortgage Company happens also to be my Bank (where I have two checking accounts with them). Can my Bank go into my checking accounts and take monies from me in order to collect what I owe them. Doing so without my consent nor forwarning that they will be doing so? The reason I ask....I need to know whether I should close my accounts with my Bank in order to prevent such a thing happening. Thank you for any insight. Most appreciated!

You have a legally binding contract with your bank in the form of a mortgage.

Generally, the members here do not help people break the law.

[Ron1347]

Thank you for your response, but....how am I 'breaking, or trying to break, the law'? My wife and I have a home that we can no longer afford to keep (because of sagging economy, lower income, higher bills, etc.). There is no other way for us to climb out. We must let our home go back to our mortgage company. No financial choice for us. Binding contract or not, how are we breaking the law. This is happening with thousands of people every day now.

[nextwife]

Have you offered to do a Deed in Lieu? Have you attempted a short sale? Have you been proactive in minimizing their loss?

[Stevef]

Originally Posted by Ron1347

Binding contract or not, how are we breaking the law.

You cannot be arrested for it, but you can be sued.

The definition of a contract is A promise that the law will enforce.

[Ron1347]

Originally Posted by nextwife

Have you offered to do a Deed in Lieu? Have you attempted a short sale? Have you been proactive in minimizing their loss?

Thank you nextwife...no...as I've not heard of any of those options. The sad thing is, we were going to sell our home to our son for the mortgage balance (which he did qualify for). Then, came the appraisal. Just a few years back our last appraisal was at $85 to $95K on our home. Our current mortgage balance being $60K. NOW....the appraisal comes back at $29,900. I have been round & round with the Bank, and their chosen appraiser over this. Then round & round with the City, as they hiked our property taxes regardless the huge decrease in appraised value. I have contacted everyone I know to, with complaints of unfairness, but all falls on deaf ears. The lending company of course withdrew our son's approval, as they said they would certainly not loan 60K on something appraising for less than 40K.

But, I will look into the meaning of those things you've mentioned. Again, thank you!