How can they do this?

[kpsmom]

What is the name of your state?SC

Posted this the other day, but no responses. Someone please help!

Okay, we had a mortgage on our mobile home and land with GMAC, took out a second mortgage loan with his employer several years later. Got behind in payments, GMAC is foreclosing. That's simple enough - here's the question -
The loan with his employer was dated July, 2004. They never filed it with the local county deed office. We informed his employer on July 8, 2005 that GMAC was foreclosing by letter and said we can not continue in the loan the way it's written because it's using collateral that we will not own any longer. Told them 2 choices, either stop payroll deducting payments and foreclose also OR convert it into a personal loan and lower payments effective immediately. Well, 2 weeks later (July 22, 05) we find out that his employer is now deducting the lower payment amount out of his weekly checks, which means they chose the personal loan option. Out of curiousity, I was checking our county's website and noticed that on 8/4/05, his employer ran down and filed the papers stating that we had the second mortgage still.

My question - how can they do that? They had already been informed that GMAC was foreclosing, we gave them the option to continue as mortgage and foreclose also and stop payments OR continue payments at lower amount and convert into a personal loan. We are still making payments at the lower amount, but when the property is sold next month what happens since they have filed the other paperwork? We have the letter we gave his employer letting them know about the foreclosure and the two options and we have the fact that they are still payroll deducting the weekly payments from his checks. How can they have a claim to any money at the sale and continue taking payments from us? Please advise.

[bdancer]

I haven't a clue on the legal aspects but my guess is the employer is covering all bases to make sure they get repaid. If they have a lien, they might get payment when the first mortgage holder sells your property off. But since we are talking about a mobile home, there's a good chance that you owe way more than your property will sell for.

You do realize that you will still be liable for the difference between the selling price and the loans?

[HomeGuru]

Originally Posted by kpsmom

What is the name of your state?SC

Posted this the other day, but no responses. Someone please help!

Okay, we had a mortgage on our mobile home and land with GMAC, took out a second mortgage loan with his employer several years later. Got behind in payments, GMAC is foreclosing. That's simple enough - here's the question -
The loan with his employer was dated July, 2004. They never filed it with the local county deed office. We informed his employer on July 8, 2005 that GMAC was foreclosing by letter and said we can not continue in the loan the way it's written because it's using collateral that we will not own any longer. Told them 2 choices, either stop payroll deducting payments and foreclose also OR convert it into a personal loan and lower payments effective immediately. Well, 2 weeks later (July 22, 05) we find out that his employer is now deducting the lower payment amount out of his weekly checks, which means they chose the personal loan option. Out of curiousity, I was checking our county's website and noticed that on 8/4/05, his employer ran down and filed the papers stating that we had the second mortgage still.

My question - how can they do that? They had already been informed that GMAC was foreclosing, we gave them the option to continue as mortgage and foreclose also and stop payments OR continue payments at lower amount and convert into a personal loan. We are still making payments at the lower amount, but when the property is sold next month what happens since they have filed the other paperwork? We have the letter we gave his employer letting them know about the foreclosure and the two options and we have the fact that they are still payroll deducting the weekly payments from his checks. How can they have a claim to any money at the sale and continue taking payments from us? Please advise.

**A: what a nice employer. They finally recording the 2nd was to protect their interest. Be nice to them.