What is the name of your state (only U.S. law)? Texas
Texas has very few laws regulating foreclosure proceedings. It is my understanding that a lien holder must notify a borrower and give them 21 days to cure default. If a mortgage company says you owe $5,200 and you dispute the $5,200 claim of delinquency in writing and indicate that that is not correct. You provide documentation of your records. Your records substantiate that you owe only $2,620.00. However, the mortgage company continues denying acceptance of any payment less than the $5,200....they do not respond to your correspondence or calls. Are they allowed to continue with the foreclosure proceedings based on a disputed claim?
Say 21 days pass for you to cure default, the mortgage company has denied acceptance of payments and you didn't pay the $5,200 (nor did you owe that much). The mortgage co. continues with the foreclosure proceedings. Four weeks go by. You have called multiple times daily.
Finally after no results you decided to go to the mortgage office because nothing regarding your dispute has been resolved. You speak with a Vice-President; he requests that a mortgage specialist review your records. Several days go by and you receive a phone call from the V-P. The mortgage company had mis-applied funds and you are informed that the misapplied funds were corrected and you should contact X number. It took 6 weeks before the adjustments were made to your account. You still do not receive any information or documentation from the mortgage co.
So instead of owing $5,200 as the mortgage company claimed and the demand letter requested, you really only owed $2,620. Remember this entire time the mortgage co. would not accept your payments because it wasn't the $5,200 as listed in the demand letter.
You call to make your payments thinking everything has been corrected...the entire time the mortgage co. has denied accept of your "CORRECT" payment...you are informed that they still won't accept your payment. You are told that you are in default and your mortgage is now in foreclosure.
Four days later you receive notice that your mortgage has been accelerated for the full amount of the loan and that the home is going to be sold the 1st Tuesday in September. After numerous phone calls and written correspondence, you are told that this is a valid foreclosure and that you are in default and foreclosure proceedings will continue.
The entire time you have not received any correspondence addressing the issues mentioned in your correspondence nor do you receive any other correspondence from the mortgage company with an explanation regarding the misapplied funds or a statement since the adjustments had been made.
Is this legal? How can a mortgage company demand payment for an incorrect amount and base foreclosure proceedings on inaccurate information while further denying acceptance of your "CORRECT" payment or an "ACCURATE" amount?
You start making phone calls to the mortgage co. in the evening from a friend's home because you don't want to use up your cell phone minutes. You don't live there but your friend has been helping you with all the correspondence to the mortgage co. The following week your friend starts receiving phone calls...people (solicitors) are asking to speak with you and/or leaving messages on your friend's VM indicating they are replying to on-line applications (which you didn't do) or they have been assigned to help you with your current situation regarding your foreclosure and they want to help you...fees are adding up...please give us a call. Who gave the solicitors my friendís number? The only place I have called from my friend's home was the mortgage company. Is that legal? I have never signed anything indicating they could give my information out or in this case my friend's information.
I can't believe any of this could be legal. I need some help....FAST. I would appreciate any advice at this point.