wrongful foreclosure???

[NH_homeowner]

STATE = New Hampshire

I have been behind on my mortgage payments for about a year. I've been 1 month late, but making a payment each month (for the prior month). Now last week, I finally caught up on the payments.

The other day, I received a foreclosure notice from an attorney. I contacted the leinholder, and they claimed they hadn't received any payments since July. When I confronted them with the payment details from my bank, they informed me that my escrow went up in June and therefore my payments were too small and were rejected by their system. Supposedly, all my payments have been placed in a "suspense account". Now, since the payments were not applied to my account, they are initiating foreclosure. And, yes, they still have my payment funds in some account, which they say will be refunded after the foreclosure has been resolved.

Is this legal?? I have made those payments. Even if they were less than the desired amount, they still covered principle and interest, and partial escrow. From the numbers they quoted, I should owe an additional $550.00 to my escrow account... NOT the $6000+ that they demand for loan reinstatement.

I need advice. Is this a legal practice? Do I need a lawyer? Or must I take it in the backside and agree with their terms? I can't lose my home. I have 3 children plus an infant. But, I'm so tired of getting screwed by corporate america.

Thanks in advance.

[seniorjudge]

Q: Is this legal?

A: Yes. Reason? "...I have been behind on my mortgage payments for about a year...."

[moburkes]

Your loan papers do not state that you have to be behind for MORE than one month, before they can initiate foreclosure proceedings. If you had been in contact with your bank from the beginning (when you got behind), they could have told you this, or been more willing to work something out. Now, they are adding late fees and attorney fees to your balance.

[NH_homeowner]

Ok, so going under the notion that foreclosure is initiated due to my late payments for the past year....

Is is legal to hold my payments, and request that amount PLUS FEES to reinstate... and THEN release the funds?

It just doesn't seem right.

BTW, the only reason the escrow went up is because the value of the home doubled with the last state re-valuation. Home went from 92% loan-to-value to 48% loan-to-value, based on tax evaluation and fair market pricing. Maybe leinholder just wants a piece of the action...

[moburkes]

What piece of the action do they want? They are NOT in the real estate business. They are in the MONEY business. They want your MONEY, not your property.

If your property increased in value, then your escrow requirements will increase for your tax payments. Have you opened ANY piece of mail that they sent you? Every month I get a statement for my next payment due, and it includes a breakdown of where your last payment went to.

[NH_homeowner]

Originally Posted by moburkes

Your loan papers do not state that you have to be behind for MORE than one month, before they can initiate foreclosure proceedings. If you had been in contact with your bank from the beginning (when you got behind), they could have told you this, or been more willing to work something out. Now, they are adding late fees and attorney fees to your balance.

Actually, I was in contact when I first fell behind. They informed me that they initiate foreclosure if I miss 3 payments. I was only 1 behind, so I was constantly hit with late fees. But otherwise account was stable. Forclosure only resulted, because when they suspended my payment funds, the account went 3 months late... because they weren't applying the payments to my account.

[moburkes]

Again, have you read your statements that clearly show where the money is being applied? Did you only contact them the one time, and then decided on your own that it was okay to be late on your mortgage payments? I guess I'm trying to understand how you didn't know that you were 3 months behind. Your mortgage statements would also indicate the minimum amount due, which should show that you are getting more and more behind.

[NH_homeowner]

First... my statements DO NOT have a payment breakdown. My equity line with another bank details principle and interest for each payment, so I know what you are talking about. The mortgage leinholder only issues a disclosure annually, that covers the payments for the next 12 months. I didn't receive that this year. Apparently it got lost in the mail. That important document was my only notification of the monthly increase.

As for monthly statements, they are usually 1 to 2 payments behind what I've paid. And their processing of funds applied to fees is slow as molasses. Therefore the "amount due" is never correct, so I just stopped even looking.

As I mentioned to the leinholders customer service representative... all of this could have been avoided with just ONE phone call informing me that my payment amount was less than required.

[danno6925]

Is this a legal practice?

Yep

Do I need a lawyer?

Yep.

Must I take it in the backside and agree with their terms?

Yep. Well, you could have avoided this by paying your bills, or at least letting them know you would be behind for a while, and worked something out ahead of time, but this is the path you're chosen.

I can't lose my home.

Oh, I beg to differ. You certainly can lose your home for non-payment on your mortgage.

I have 3 children plus an infant.

Is that one of those full-grown infants I've heard so much about?

But, I'm so tired of getting screwed by corporate america.

I see no relavence to your case? Were you an Enron employee or something?

From the numbers they quoted, I should owe an additional $550.00 to my escrow account... NOT the $6000+ that they demand for loan reinstatement.

And by my calculations, I should have been able to retire by now. Since you're in foreclosure, and I'm only 28 and deep in my own debt - it would appear that neither of our views are realistic.

What you're neglecting to realize here is that the late fees they asess are also due and payable (most mortgage companies charge 15% of the late payment) so find the 6k somehwhere and pay up.

[NH_homeowner]

Wow... I must say, this forum is quite condescending.

I came in looking for simple advice, not personal attacks and criticisms.

I didn't ask for your opinions on my bill payment practices. You don't know what circumstances lead to my falling behind on payments. You don't know how many hours of overtime I may have worked just to make the payments that I have. All I asked was whether or not I needed legal counsel in this situation. I get the feeling there are more bankers here giving advice, than true lawyers. Or, at least, a lot of lawyers that handle foreclosures for bankers.

I can see now why IAAL probably became abusive toward this forum. I've been here less than a day and wish this site ill-fate.

[seniorjudge]

Originally Posted by NH_homeowner

Wow... I must say, this forum is quite condescending.

I came in looking for simple advice, not personal attacks and criticisms.

I didn't ask for your opinions on my bill payment practices. You don't know what circumstances lead to my falling behind on payments. You don't know how many hours of overtime I may have worked just to make the payments that I have. All I asked was whether or not I needed legal counsel in this situation. I get the feeling there are more bankers here giving advice, than true lawyers. Or, at least, a lot of lawyers that handle foreclosures for bankers.

I can see now why IAAL probably became abusive toward this forum. I've been here less than a day and wish this site ill-fate.

What part of the free advice you got was inaccurate?

[krypton311]

1.talk to an attorney
2. do you have equity in your house? how much is your house worth, how much equity, and loan amount.
3. possible refinance will save you and you can cash out from your equity to pay for whatever the state wants

[moburkes]

OP already has an equity line of credit. She probably doesn't have much more equity left or good credit left, at this point.

She got accurate advice, whether she likes it or not. She should pick up her mortgage and read it some day. It will explain all of the "rights" that she agreed to.

[WhatAShame]

This poster came here for advice. What she received WAS condescending responses from the kind of attorneys and financial heros that have given both professions negative reputations. I suppose if it makes you feel better, continue with your "professional" advice. In the meantime people such as the original poster will search for those that can provide advice withou the ugly attitues (SHAME ON YOU!) rather than give the :"professinals" on this site an excuse to "slam" someone when they are down. I will assume that you have the time to post such responses due to lack of business......I wonder why???

Don't you guys have a Code of Ethics to follow...?????

[moburkes]

Originally Posted by WhatAShame

This poster came here for advice. What she received WAS condescending responses from the kind of attorneys and financial heros that have given both professions negative reputations. I suppose if it makes you feel better, continue with your "professional" advice. In the meantime people such as the original poster will search for those that can provide advice withou the ugly attitues (SHAME ON YOU!) rather than give the :"professinals" on this site an excuse to "slam" someone when they are down. I will assume that you have the time to post such responses due to lack of business......I wonder why???

Don't you guys have a Code of Ethics to follow...?????

There is NO advice to give her at this point. She is beyond the point of being able to get advice to "fix" her situation. Her bank would have been the first place to start for advice. She said that she called them at the beginning. She didn't say that she called them when her bills kept getting bigger. They may have been able to help her at that point. She didn't read her mortage. I understand that its a large document, however its broken down into separate sections. If she had read 2 or 3 pages A DAY, she would have had this information. Then she may have been able to be MORE proactive, instead of reactive. There is nothing that can be done to help her at this point. She waited, dragged her feet, or whatever you want to call it, until it was TOO LATE. There is nothing that you or I can suggest, except, perhaps a bankruptcy attorney, at this point.

What ADVICE did you give her? I explained where the answers to her questions were. The answers are in the documents that she signed. SJ and danno broke each question that she asked, down for her. They simplified it. How much blame should SHE have in the situation for letting it get this far before she asked for help?

I was making a realistic statement about probably not qualifying for ANOTHER line of credit or a REFI. I'm guessing, she she appears to be a smart person, that she has tried these avenues already. And with 1 year of 30 day lates, the only loans that she MAY qualify for are ones that charge high interests rates, which she can't afford.

What do YOU think she should do?