Ways to Stop Foreclosure

[Judith]

If Chase does not come through with an affordable loan for us, what are our chances of being able to refinance our home w/o knowing what it is worth - I know we are now upside down in our home. I was told by an appraiser that all the homes in my neighborhood have either been sold through a short sale or foreclosure.

[Moe Bedard]

Judith,

Here is a little secret between us............
Just call a Realtor and have them do a CMA (Comparitive Market Analysis) on your property.........tell them that you were thinking of selling in the near future, of course you wouldn't be under any obligation and you are not required to sign anything for them to do this service for you.........they offer these for free.......

[Judith]

I spoke with an appraiser this week - she ran some comps on homes that sold over the last 6 months in my neighborhood. The only homes that sold were all short sales and one foreclosure. The neighborhood is only 3 years old! I've been pondering about taking money out of my deferred comp and buying a home with a more manageable monthly mortgage payment. What do you think?

[Moe Bedard]

Judith.........

This was posted on a previous post by a mortgage loan underwriter about this very thing..........so I will repost it for your knowledge too......this is from the lenders standpoint..........


Previously posted by an underwriter in another members thread relating to this thread:
To represent to the new lender that things are AOK with the old properties and compel/induce the lender to make a new loan on a property with the express intention that after you get that loan the old properties are going to be either Shorted or just plain Walk Away is really, really a problem.....like loan fraud. We are not tolerating it and when we catch it and believe me sooner or later we will, well......we are not to happy with the situation. There is a SAR report filed and that can be very detrimental to anyone in the industry...that is a Suspicious Activity Report that is filed with the Treasury Department. The Feds can often and will more and more become involved in these matters as it is now the "new" thing....

It is considered confirmed material misrepresentation and they will act on it, so I do not advise that anyone consider doing it.

Do they catch everyone, no, but they are looking for it now as it has become epidemic and we are rather PO'd about it. So, do I like what the lenders did on these loans, no I do not, but can we continue to allow the excesses of the past that got us here? I have declined so many of these loans that were build on smoke and mirrors...and rightfully so it appears...we can not let this mind set continue, our credit markets are completely in disarray, we are verging on total recession and we are going there to the glee of the rest of the world with our high and mighty position that we have taken for so long....

So I do not support or advise the continuation of the issues that got us here in the first place.

[Judith]

So underwriters are looking into the problem of people bailing and getting into an affordable mortgage. What choice do they have? If lenders are still FORCING people to pay the newly adjusted rate - as our is nearly $900.00 more a month - and refusing to work with us, again, what choice do we have? We tried to refinance our home over a year ago and did not find any takers due to the fact that we did not have enough equity in our home. I, personally, as well as my husband, would love to stay in our home, but we cannot afford the adjusted increase. And if no lender is willing to work with us, what do we do? Chase has still not given us any notification that they will redo our loan. Should we hire an attorney?

[Moe Bedard]

Most in the same situation are renting until they build their credit back up and get past the situation, on a foreclosure you need to be at least 3 years past it with payments made to all tradelines of credit on time during those 3 yrs............it is obtaining a new " mortgage loan" that would be considered fraudulent.

You can hire an attorney...National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys or try a non profit to help with the modification like HOPE at 1-888-995-HOPE.

If you are going through the modification process with Chase, they are modifying most of their loans as long as you can show that you can afford the modification going forward........

[gb7488]

Having an audit done right now, pretty sure we're going to be able to rescind the mortgage - still in the 3 yr window - we put $250k into the house (our money), since the bank benefits from the work can we either sue for that or put a mechanics lien on the property

[Moe Bedard]

that would be an attorney question............

[TB98629]

I have been posting in "Ask The Attorneys" about our progress, and so I won't repost here, but in the case of rescinding the loan and bankruptcy: There are MANY documented cases and previous findings sustantiating what my attorney is now doing for us. I will be posting the progress, and it should be fairly quick...

1. We filed a valid rescission on both of our mortgages 2 years and 11 months and 28 days after our closing date. The rescission is water-tight, the numerous TILA/HOEPA/RESPA violations are clearly there, and the all-important "Material Disclosures" were not only not made, but falsified on the ones that were.

2. We are now filing Chapter 13 Bankruptcy with the help of an experienced bankruptcy attorney who also has done numerous cases of consumer protection and real estate law litigation, and has in fact personal case history of this action in our area.

3. The two mortgages will be listed as "unsecured debt" because they are. The loans were rescinded. Our mortgage debt will be included with credit card debt and all other unsecured debt, and will receive the lowest priority repayment in our trustee plan.

YES, you can do this, yes, it has been done, and EVERYONE considering bankruptcy should make SURE that their attorney checks out the details of their mortgage to see if there are TILA violations and whether you are within your rights to rescind. Bankruptcy attorneys, until recently, usually take your mortgage balance and status at face value and assume it to be legal. You can no longer make that assumption, we all now know.

YES, you can walk away with NO MORTGAGE on your home (in Ch13), and it is happening every day. Please don't depend on your mortgage company to make this suggestion to you, they won't.

I thank God every day that I found this forum. If it wasn't for this forum, I would have never questioned what I was being told by my creditors (who are lying like dogs). Thank you thank you thank you. TB98629

[freediykits]

From what I understand, in most cases the bottom line is; he bank will only approve a loan modification, short sale, or an other foreclosure alternative if they are losing less money than if they pursue foreclosure on your home. The bank is a business and if it makes them more money by selling your home through foreclosure 9 times out of ten thats what they are going to do...