March 18th CA trustee sale options?

[Kittycatlover]

Hi, I've been lurking the forum site for a couple of weeks. Great site by the way.

Here's my situation: CW has not contacted me yet for the last 2 weeks since I started the request for the loan modification request (as of 3-7-08, no one has been assigned to my case!!).

I have faxed every other day to the 800-658-0395 workout number as they requested since. I owe $36K in arrears and their legal fees.

There's about $30K in equity left and that's taking the numbers off some of the free evaluation websites. My income level has dropped a lot due to the employer I work for is having its own financial problems and have not gotten paid for months (I'm an independent consulting contractor for them), and hard to prove income, I was approved via stated income in 2005.

I'm about to give up anyways! Why? I can't afford the monthly mortgage payments even with the loan modification.

But I can afford to get into a new house by renting it and save about $1,200 a month.

QUESTION: Since it's a trustee sale, I'm thinking of letting go to sale, BUT can I still offer a "deed-in-lieu of foreclosure" at this point? I know the short sale is too late. I'm just trying to save my previous 700 plus mid-FICO.

QUESTION: I have no other assets, other than a $5000 used car and if I understand it correct, a trustee sale does not allow for the lender to go after any difference, but is that true also, if I offer the "deed-in-lieu of"?

Thanks for your comment and this site. Which btw, I saw on TV as a referral source, I think Channel 7 or 11 in the LA area.

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

You are not to late for a Short Sale agreement, the foreclosure can be postponed with adequate representation from an experienced Realtor...this should be addressed immediately if you can, they will with receipt of the financial hardship package consider Short Sale as an alternative, which in your case it is the preferred alternative.

They are rarely accepting Deed in Lieu, and for that matter in the eyes of the credit bureaus and Lenders that is the same as Foreclosure...no difference, unless you were able to negotiate otherwise, which is also quite rare. The reason for no deed in lieu is that they are wanting to "clear" title by virtue of the foreclosure from all other potential and possible lien holders....so they are just not doing the deed in lieu due to the exposure of other potential liens against the property not yet recorded, i.e. IRS, State Tax Liens, etc...

My suggestion is that you immediately contact HOPE in the morning on Monday 888.995.HOPE and see if they can intervene on your behalf in addressing the potential of a Short Sale and then go searching for an Agent that is very experienced in these matters. HOPE can be a very good advocate for the borrower, if the counselor that you are assigned is a dud, call HOPE back and get another one. Country Wide requires an agent that has dealt with them before on Short Sales as they are quirky with them.

Meanwhile you need to keep at Country Wide on a daily basis to get someone human on the phone to assist you. You need to get some real human contact and you need it yesterday, with Project HOPE the foreclosures are being postponed for workout situations. That is what the project is all about and the Servicers like Country Wide are stating that they are cooperating...so hold their feet to the fire on that issue.

As for the Deficiency issues we are not attorneys and that is a question that would have to go to an attorney as each situation and case is different and we can not give legal advice.....I will post CA foreclosure regs on the next post.

You have to call daily, my formula is call, call, call and fax, fax, fax...you must be proactive and the squeaky wheel gets the grease.

For the time being here is the phone list that I give out and the QWR stuff.

We do recommend the QWR route, that tends to get attention and it is not to late for that either. You need to be the proactive, responsible party with them and keep at them. It would not hurt to send a QWR demand - there are examples of the letter in the Tool Box. In that letter demand your Life of Loan History, copy of Note, Deed of Trust, Riders, all Assignments of the Deed of Trust, TIL, Right of Rescission (if refi), Lender Final HUD-1, copy of initial loan application and final lender loan application, all disclosures and all loan documents in your file, copy of appraisal. Send this three times certified return receipt required and also send it to the Broker, Title Company and all others in the Chain of the Transaction.

Please be aware that each foreclosure situation is different and the lengths that the lender will go to is determined on many different issues. Please seek legal assistance in these matters.

Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Typically 120 days
- Right of Redemption: Varies
- Deficiency Judgments Allowed: Varies
In California, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Using this type of foreclosure process, lenders may seek a deficiency judgment and under certain circumstances, the borrower may have up to one (1) year to redeem the property.

Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

1. A notice of sale must be: 1) recorded in the county where the property is located at least fourteen (14) days prior to the sale; 2) mailed by certified, return receipt requested, to the borrower at least twenty (20) days before the sale; 3) posted on the property itself at least twenty (20) days before the sale; and 4) posted in one (1) public place in the county where the property is to be sold.

The notice of sale must contain the time and location of the foreclosure sale, as well as the property address, the trustee's name, address and phone number and a statement that the property will be sold at auction.
2. The borrower has up until five days before the foreclosure sale to cure the default and stop the process.
3. The sale may be held on any business day between the hours of 9:00 am and 5:00 pm and must take place at the location specified in the notice of sale. The trustee may require proof of the bidders ability to pay their full bid amount. Anyone may bid at the sale, which must be made at public auction to the highest bidder. If necessary, the sale may be postponed by announcement at the time and location of the original foreclosure sale.

Lenders may not seek a deficiency judgment after a non-judicial foreclosure sale and the borrower has no rights of redemption.

[Kittycatlover]

Wow, what a wealth of information and not going to let it go to waste!!

I'm sorry I just got home from work (7:19 p.m.) and will call the HOPE people tomorrow for sure!!

I can rest a little tonight, knowing there's a little light at the tunnel....let's pray and hope that's the case for me.

Again, thanks!!

You need to call HOPE right away in the AM, you can let no grass grow under your feet, if HOPE does not work, then ACORN...right away... HOPE 888.995.HOPE ACORN www.acorn.org

[Kittycatlover]

Hi, I'm aware of the notice that's to be posted on my door, as you mentioned on item #3, but I can tell you with 100% assurance that one was never tacked or taped on, as I looked a few times a day for it. My neighbor also never saw anyone posting it or seen one.

Do they have to take a picture to show evidence they did? Not trying to get off temporarily on a technical issue, but just that if that's the procedure, it was not followed properly. I did get the certified letter, does that take place of the door notification?

I know you're not lawyers, but just a curious issue.

That is unfortunately an attorney question, I believe that they do have to adhere to the process in a timely and systematic manner as the regulations/statutes set forth, however, I am not an attorney. You need to call an attorney and at least have 1 to 2 hours of their time on this issue to address it adequately.

How are you doing with HOPE and ACORN...any luck there yet, they can if you get a good counselor be of great assistance, it is all in the person you are assigned though.

[Kittycatlover]

Hi, there: Okay, after getting cut off from the HOPE lady once, I called back to get my client ID as soon as possible first.

The counselor assigned to me, Terry Douglas, will be calling me @ 5:30 a.m. PST to go over the 45 minute question and answer session.

Anyone work with T. Douglas?

Just hope my timing is not messed up as it's so late in the game.

There are so many of these folks out there, remember if he is a dud, call back and get another one assigned, some of them are great, some of them....

Please keep us posted.

[Kittycatlover]

Well, so far, I've been disconnected 4 (four) times starting at 5:32 a.m. this morning!!

The counselor called me on time, but asked her to call me at the other contact number, and she misunderstood me as "call me at 8 a.m.", but I can't due to a medical testing appt.

So in trying to get back to their main office, I go thru the same thing, and try this number, disconnect...

Now past 6 a.m., still no way to get a hold of Terry Douglas...

Who's worse, CW or HOPE?? Sorry for ranting, but so totally frustrated...
I had asked for an later appt. yesterday, but they were all booked up so I took the 5:30 a.m.

No other person was available this early to go thru the 45 minute session.

On hold now

[Kittycatlover]

The forum would not let me re-edit again....so thus, this new one...FINALLY able to reach Ms. Douglas directly, a very nice and listening person.

Hope she can work her magic as she contacts CW this morning to their loss mig. dept.

Now you have two of them to stay on top of, HOPE and Country Wide, you do need to call, call, call...fax, fax, fax and e-mail, e-mail, e-mail....that is a daily chore, this is a Second Job....

[Kittycatlover]

Update: 3-14-08 5:50 p.m. PST

I spoke with the Project HOPE person this morning, she had not heard back anything yet from CW. She said most likely they would contact me directly, but that never happened.

I spoke with Naomi at CW Workout Dept., she was able to move the process with her supervisors approval to the Escalation Dept. and I'm to call on Monday @ 2 p.m. to see what's going on...and as a reminder my sale date is March 18, 2008 @ 1 p.m.

I asked Naomi to see about going the Short Sale route, she said it might be too late but let's see what the Escalation Dept. can do. She did see that I had started the process already back in mid-Feb., but it was not about the short sale option but rather the loan mod, which at this point, I'd rather do the short sale.

BUT I did not know that I needed to have the property listed or have a bona-fide offer in hand and to be faxed in by a real estate agent.

So I'm meeting with a short sale agent, who advertises short sale, on Saturday @ 10:30 a.m.....we'll see what happens....

You are racing the clock...if you can get the postponement to stall the clock and proceed with the modification, do it.....do not confuse the issue right now with the Short Sale. Get the foreclosure postponed with the modification process. Then check out the Short Sale option. Once you have the foreclosure postponed then you can visit options on the situation.

You must have an agent in the Short Sale Transactions that is required to guarantee the Arms Length validity of the transaction. Country Wide is exceedingly slow and picky about Short Sales, they are difficult to deal with on all levels, but Short Sales they can be excruciating....Country Wide has a formula for them and the Agent that you use should be experienced with that formula to save your sanity.

I have had good luck with the Escalation Department here recently pulling things around and postponing the foreclosure actions.....so fingers and toes crossed.

[Kittycatlover]

Update: Sunday

I met with a realtor who does mostly short sales and foreclosures on Saturday. We will meet again on Monday, 17th to joint call CW before the 2 p.m. call to CW.

I will bring all the documents the realtor needs: mortgage statements, letters, etc., this will happen Monday around noon-ish.

He has worked with CW and saw his listings of 20 plus other homes under the gun. He did say that CW will ask for $2,000 up to $3,500 up front fee if there's an extension of the foreclosure sale?? Anyone heard of this? Seems odd to me, and not sure anyone else had to do the same.

He did question the foreclosure procedure in which there was NEVER a trustee sale posting on my door. He says they could always say their person did, it could cloud the trustee sale process, but not count on it.

The second is with CW also, and the realtor says it's possible that if there's a shortage in the short sale, I will have to pay the $70,000 as a separate loan to be paid? Not sure if the realtor's right or just trying to get the listing.

Other realtors don't want to take me on due to the extreme shortness.

This guy is being honest and appears to have some experience....he is not gilding the lily he is being upfront and frank. Yes they often want the attorney fees to pull out of foreclosure and postpone the foreclosure date. This pays the legal fees to date and allows the property to be yanked out of the Foreclosure side of the world while you try to sell it.

As for the shortage, we are seeing varying results, some are forgiven, some are partially forgiven, some are wanting the shortage in its entirety.

This guy is upfront and on the level from what you are posting.....the kind of person I would work with. He will tell it like it is and that is really in my book the only way to fly.

The shortage issues are due to pool insurers not wanting to take any further losses on the shortages - mostly on the seconds...the first are still dealing to some extent, not for long though, they too have pool insurance, and the insurers are taking huge, monstrous hits at this point, and if is getting worse.

Me, I would sit down and listen to this fellow, he is right on target and just what I would want.

[Kittycatlover]

Yessssssssss......I got a break.....I never heard from any one at CW, decided to call them, of course......the sale was postponed for 30 days and to get my act together to get the property listed asap!!

Not sure if it was via HOPE or my own efforts, but happy nevertheless for now.

Please send a letter of confirmation to confirm with the attorney for the lender/servicer that reflects that the agreement as you understand it so that there is a clear understanding between you and the lender/servicer and their attorney. Often times the right hand does not know what the left hand is doing.

[Kittycatlover]

Yessssssssss......I got a break.....I never heard from any one at CW, decided to call them, of course......the sale was postponed for 30 days and to get my act together to get the property listed asap!!

Not sure if it was via HOPE or my own efforts, but happy nevertheless for now.

[Kittycatlover]

Originally Posted by Poppy

Please send a letter of confirmation to confirm with the attorney for the lender/servicer that reflects that the agreement as you understand it so that there is a clear understanding between you and the lender/servicer and their attorney. Often times the right hand does not know what the left hand is doing.

Okay, I'm writing the letter now and fax and mail. I did call the sale dept.'s automatic information line and they had the NEW sale date mentioned.

Still do the letter of confirmation...do not trust anyone in this process....please.