What if lender won't foreclose?

[Andri]

My first and second mortgages are with GMAC (aka DiTech). I have not made a mortgage payment in over 7 months. I have not heard from them at all. Not one phone call, not one letter.

I am confused and worried. My Taxes and Insurance are due next month, and there is not enough money in escrow to pay them. What will happen if they never foreclose? Should I pay the taxes and insurance?

Thank you!

Andri

[Cat Damiano]

Hi Andri,


Welcome to the forum and thank you for joining........

What state are you located in? Are you in the modification process?

[Andri]

I am in Northern California. Not in a modification process. Trying to walk away.

thanks!

Andri

[Cat Damiano]

Well in that case if you have not already done so you may want to look at the following thread as your questions may have already been answered there from others experiencing the same:

http://www.loansafe.org/forum/chase-...heel-game.html

[Andri]

Thank you, Cat.

I took a look at the thread. It is very interesting, but I actually WANT the lenders to foreclose. I want to move out of state. My husband passed away, and I want to move close to my remaining family. I couldn't afford to live here on one income, even if I got a significant loan modification. I'm just confused that the lenders haven't contacted me at all. My home is 2K+ sq ft house on 14 acres of forest, in very heavy snow country. I am 55+ and I can't handle the challenging lifestyle alone. I'm not upside down, but home sales in this area are very slow, usually taking years. It is not a lifestyle the average person would like.

Maybe I should call the lender and tell them I want them to foreclose?

Thank you!

Andri

[Cat Damiano]

Unfortunately there isn't anything that you will be able to do to prompt the lender to foreclose any faster than the timeline in your state and the current backlog in the courts will allow.

[gettinout]

Normally I'd agree with Cat's assessment, but if your house had equity, it may be worth brining that to their attention. Never knew a bank that wasn't interested in free money.

[acesfull]

Hi Andri
Try to rent the property out.. Why leave money on the table?

Best regards,
NJ-8 months
acesfull/HWP

[Andri]

Thank you, Cat. I'm thinking I will contact the lender and see what they are doing. Maybe with so many foreclosures, they just haven't gotten to mine yet.

Unfortunately there isn't anything that you will be able to do to prompt the lender to foreclose any faster than the timeline in your state and the current backlog in the courts will allow.

[Andri]

Thank you, gettinout. I will mention it.

[Andri]

Thank you acesfull! I had considered that, but as is the case after any bad winter, I would have to invest too much $$ in repairs, before I could rent the home. Also, my mtg payment is more than double what I could expect to receive for rent.

[Cat Damiano]

Keep us posted on what they say as it can help others going through similar.

[gettinout]

The other thing I meant to ask earlier, if you've mentally prepared yourself for foreclosure and just want to move asap, why not just up and leave? Doesn't sound like you're part of an HOA so there are no dues to worry about, you could just leave and who cares how long the bank takes.

Also, if you do have equity, why not just sell it as cheap as possible, especially if you don't care about getting any money out of it. Though depending on how much equity you have, perhaps you can't sell it for enough to cover the remaining mortgage, in which case, you would technically be underwater and then the bank probably will take its sweet time. If this is the case, then I'll refer to my first point, just go. Nobody can stop you. As acesfull points out, you might rent it to enjoy a little cash flow while the blank stumbles around for the next 1-3 years.