Foreclosure Of Mortgage

[jaygatsby]

Hi,
I have a Chase 1st Mortgage for 320k and an Associated Bank 2nd for 59k. Due to financial hardship incurred by divorce I stopped paying the mortgage in February. I have now moved out of the house completely. It is up for sale and have dilligently sent in all the paperwork to both banks requesting a short sale since it is also underwater. I have just got 2 replies from them both, from law firms representing them, stating that the they intend to collect on the debt from within 30 days of the letter being sent. So despite genuine hardship they have not so far taken any notice and have simply sent letters from their respective law firms. Is this something that I should be worried about at this relatively early stage of the whole process, or should I consider consulting a bankruptcy attorney?

Thanks

[walkin]

Don't worry at all. I got that same letter from some law office, when I was in the middle of my short sale with Chase. Chase quickly approved the conditions of the short sale, but ultimately, the 2nd lienholder killed the deal. I think in most states, the bank has to foreclose on you before they can try to sue you.

By all means, come up with a list of good questions, and get a free consult with a BK attorney. They will try to convince you that BK is your only choice, and best choice, because that is what they do. However, filing BK should be a very last resort. I was ready to hire my BK attorney after my free consult, and get it done. After a few weeks of reading in here, I have learned that would have been a foolish move.

[jaygatsby]

Thanks for the reply....was reading from someone called Tom Eason on this forum that it is worth replying to them arguing the debt and also stating that it would be a frivolous law suit. It seems like some kind of reply within 30 days is wise so as not to give them the option of a default judgement. Any thoughts on this?

[walkin]

Tom Eason seems to be a smart fella, and offers great advice. However, you need to realize the difference between a "bully" letter with a law firm letterhead (like the one I received), and an official service of a pending lawsuit. I've not been served with lawsuit papers yet, but I'm sure it would say something like "XYZ bank vs. (your name)" blah blah blah, in the county of "XYZ", state of "XYZ", etc. It sounds like you were sent a letter from an attorneys office, to try to scare you into sending money to someone. I think that you would have to personally be served with papers, if it was an actual pending lawsuit.

I don't think you've been served with anything, I think you opened an envelope containing junk mail. You can go to your county's website and see if you have any lawsuits pending against you.

Oh, by the way, I'm 8 months with no payments, and have yet to receive any foreclosure papers, much less lawsuit papers.

Thanks for the reply....was reading from someone called Tom Eason on this forum that it is worth replying to them arguing the debt and also stating that it would be a frivolous law suit. It seems like some kind of reply within 30 days is wise so as not to give them the option of a default judgement. Any thoughts on this?

[jaygatsby]

Thanks for the quick reply again... that info makes feel alot better already! When going through this kind of an ordeal it really pays to have as much knowledge as possible...knowledge is power

[OverandDone]

You might have gotten a letter from a law firm because they are going to begin foreclosure. The beginning of the end so to speak. They always say "This is an attempt to collect a debt" ect.

[walkin]

No Problem. I can't offer as much experience or knowledge as a lot of other people in here can, but I can say that I was new and scared like you, about a month ago. I've learned a lot in 30 days, and so will you if you spend some time reading through this forum. (this place is my new addiction, so I've turned off several other forums that consumed my time, until I can get through my personal financial issues).

There are a lot of good reads in here, including "HAMPster wheel game", and others, to delay the process. Once you get served with foreclosure notice, that doesn't mean it will happen tomorrow, it takes time (depending on your state). One of the "plays" in here seems to be to submit a MHA/HAMP application after you are served with a Lis Pendens, or Foreclosure notice. That could possibly delay the foreclosure, while the banks shuffle through the paperwork, and lose most of it.....Perhaps you should put a tenant in the house and start earning some cash flow? I never would have considered putting a tenant in a house that was doomed for foreclosure, until I found this forum, and I am enjoying the cash flow (wink). I've never had any landlord experience before, but I'm pretty sure I've found a reliable tenant. Just an idea.....

Thanks for the quick reply again... that info makes feel alot better already! When going through this kind of an ordeal it really pays to have as much knowledge as possible...knowledge is power

[jaygatsby]

Hi,
I received a letter today from a law firm offering to help with my foreclosure case filed by Chase. This is the first I have heard about my foreclosure case being filed. Chase did not send me any notification about this. I found out from a law firm trying to solicit their services to me. I am not sure what to do at this stage, previous to this I filed short sale paperwork with them and Associated Bank and have heard nothing from them on this. I feel that they have not communicated with me properly over this matter. I shouldn't have to find that a case has been filed against me in this manner. Any suggestions appreciated!

Thanks

[bcabo]

Hi,
I received a letter today from a law firm offering to help with my foreclosure case filed by Chase. This is the first I have heard about my foreclosure case being filed. Chase did not send me any notification about this. I found out from a law firm trying to solicit their services to me. I am not sure what to do at this stage, previous to this I filed short sale paperwork with them and Associated Bank and have heard nothing from them on this. I feel that they have not communicated with me properly over this matter. I shouldn't have to find that a case has been filed against me in this manner. Any suggestions appreciated!

Thanks

You should have received a bunch of paperwork prior to this if the house is getting anywhere close to foreclosure. We got 4-5 copies of everything. Notice of Intent to Accelerate or NOI, Notice of Default or NOD, and just last week we got the Notice of Trustee Sale or NOTS. Lots of registered letters. Is anything filed on your county recorder's website? If not, then you are likely just seeing the beginning of all the junk mail you will get. When a house starts the FC process, it goes on a list that real estate agents, attorneys, and other people get. Then they start trying to contact you to convince you to hire them to "help" you. Is your mail being forwarded to your new address?
Also, you said the house is up for sale. Does your agent know you are attempting a short sale? Usually the agent is the one talking to the banks when it is a short sale. But I guess a SS would have to be approved beforehand.
I didn't see what state you are in, but you can google foreclosure laws for your state and see exactly what lenders have to do in order to foreclose on a house. It doesn't sound like they have done much of anything. We had Chase for a HELOC, and based on our experience, they did everything by the book.