URGENT: Foreclosure despite $$$

[gpl]

I have a situation which requires URGENT advice. Any assistance would be greatly appreciated.

The short version of the story is that, due to unexpected termination of employment, I have a mortgage on a house in Dallas, Texas where I am currently in arrears. I owe for May, June and now July. The CA based mortgage company have moved to foreclose and will not let me make a payment to clear the May arrears. They state they wont do this on the basis it will stop foreclosure and they will have to start it up again if I default on future payments. They have given me conflicting options - (1) pay ALL arrears plus outstanding taxes to stop foreclosure; (2) issue them with a statement of assets and liabilities plus a plan on how I am going to clear the arrears for them to consider.

I don't have the funds for (1) (duh - otherwise I wouldn't be in this position in the first place) and given their insistence I can't make payments to clear the arrears, I am loathe to give them access to all my assets on the basis they will go and sell the house for as little as possible then pursue me.

My questions are as follows:

(a) Can I force them to accept payment for the May arrears? (I plan to clear all arrears within the next 6 weeks and have already advised them that but they have dismissed this out of hand.)

(b) If I decide to just give them the property in exchange for them not taking any further action - what is their incentive in agreeing to this?

Any advice would be greatly appreciated.

GPL

 

[Tracey]

You can't force them to accept payment for May only. How long will foreclosure take? Do you have a right to redeem even after foreclosure? Can you prove that you'll be able to clear all arrears in 6 weeks? How are you going to manage this? Why should they believe you?

If they sell the property, they have to sell it for the maximum they can get. If a court finds that they undervalued the property, the judge will credit your debt by the amount the property should have brought, rather than its actual price.

If you can pay the arrears in 6 weeks, can you get a quick loan & just pay it all off now?

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This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws.

 

[gpl]

Thanks for the prompt reply.

Why shouldn't they believe me? - The property is now rented out with the rent covering 85% of the mortgage. But the rental has only just happened - this is why there has been a blip in my cashflow and the arrears exist. I can easily cover the balance each month and eat into the arrears pretty quickly (by end of August). I have communicated this to the mortgage company 6 weeks ago flagging that in July I would owe for May, June and July but would clear May and part of June with June and July and August cleared by end of August. They refuse to negotiate.

Can I not get a quick loan? - no. Catch 22 situation I'm afraid.

How would a court get involved in a dispute over the value of the house unless I took subsequent action against the mortgage company for selling the property under value - which wouldn't occur as I am now living outside the USA so that would be extremely difficult and costly for me to do.

As I am also outside the USA, I am finding it very difficult managing this issue from a legal perspective. The mortgage company is in CA and the property is in TX. I am in desperate need of legal advice but not too sure how to find the right attorney.

I am leaning towards just handing them back the keys to the property but don't know the ramifications of doing this. How can I put this scenario to them so they would accept? Why would they accept this rather than continuing with foreclosure?