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Bank enters my house and changes lock after 20 days of filing of NOD.. Need Advice

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by 94503, Sep 14, 2010.

  1. 94503

    94503 LoanSafe Member

    I bought my house in 2005 in east bay, california and stopped making payments from March as the house was underwater by 300K. Purchased the house at 650K and now the first mortgage is 460K with ing direct... No second.

    I was out of the country from August 1st and just came back on Sept 8th. MY NOD was filed on August 24th and the bank sent someone to check on my house on Sept 5th. This guy comes in checks the house and reports as being vacant back to the bank and changes the type of lock on my main door. He puts an inspection notice saying they were here. They put a lockbox on my main door. The house is not fully furnished and since I am living alone it just has enough furniture for 1 person.. My bedroom has a bed and closet has all my clothes ..

    My neighbour notices that someone entered my house and calls me and lets me know on Sept 6th at which point I call the bank to find out what is going on. The bank tells me that since they were not able to reach me they did what they did.

    I am trying to find out if..

    1. Is it legal for the Bank to enter the house and change the type of locks on main door even before notice of sale is filed.. Notice of sale will be sometime in December at earliest since my NOD is August 24th

    2. I send a few emails back to bank asking them the reasons behind their action and they have been not able to explain this so far.. looks like they are now consulting with legal as the counsellor assigned to my case is having a hard time getting back to me..

    Anyone seen anything like this.. Any advice is appreciated..
  2. DesertMe

    DesertMe LoanSafe Member

    Yep...it's perfectly legal if you are in default..Had you been there, they would have just asked the same questions and left, and possibly offered you a "cash for keys deal"..In the VERY fine print of your trust deed it does allow for a property inspection..Not to be the devil's advocate, but they are allowed to protect their investment. Been there, had that done to me..Time to move...
  3. sailordude

    sailordude LoanSafe Member

    I've seen these stories before...


    There was one thread in particular that sounded a lot like yours; but I can't find it. It is apparently, and sadly, quite legal for them to do this if they think the place is abandoned. The point, I think, is to protect the place from squatters and strippers (there's a term for it ... people who break into abandoned properties and steal the appliances, copper plumbing, fixtures, etc).

    I know with my rental property that insurance is much higher when the building is unoccupied (vacant property insurance). Also, I was slow moving into my primary residence when I bought it (work was crazy) and I received a notice of cancellation from my insurance company about two weeks after closing informing me that if I didn't move in (and prove it) they would cancel insurance at the end of the month. I know of another house that was put on the market after the owner left the country for six months, came back to find significant damage from a busted pipe, and was denied his claim by his insurance company since the place was temporarily unoccupied. All this to say the bank wants to protect whatever value there is.

    Although, it does sound like they occasionally use it as a legal strong arm tactic.

    If they haven't completed foreclosure, you still own the property, so I would assume there wouldn't be a problem with you changing the locks back.
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Yes I have to agree with Sailordude, this is completely ridiculous they go to these extremes, but with the housing market in the way it is these lenders can get quite paranoid at times. Since the home has not gone into foreclosure you still legally own it and therefore they should have no problem changing your locks back. Who is your lender?
  5. 94503

    94503 LoanSafe Member

    Thanks Everyone..

    Evan, The lender is ING Direct. I am ok with them entering the house since I was not there but did not understand why they changed the type of lock on main door and the key to open the lock is the same old key. They did put a lock box on the door which means the key for the house is there in it for people they send.

    Questions that I have..

    1. Since notice of sale is not filed, is it legal for me to stay in the house until notice of sale happens which at the earliest can be in december.

    2. I have asked them to remove the lock box on my main door. I have sent them an email explaining that the house is not vacant and I am living in it. The lock box on the door does not make me feel safe and also am worried that anyone can be sent to clean the house empty.

    3. If they do not remove the lock box should I be worried where the bank will send cleaning services to empty the place and make it ready for sale?
  6. sailordude

    sailordude LoanSafe Member

    1. It's still your house, which means you get to live in it.

    2. I don't see any reason you can't remove the lockbox yourself if you have the combination, or can figure it out (just keep trying combos until it works). I don't see why you should make it easy for them to get in.

    3. I would be very worried. Although it seems pretty clear to me that they have no right to remove belongings from YOUR house until it is no longer YOUR house, I have very little trust in the process. I'd be worried about all the people who might have access to that combination. And I'd be worried that the bank is not acknowledging that the place isn't vacant. At the very least privacy is important enough for me that I'd be extremely worried about people just walking in and around the place. Story: back in my rental days a couple decades ago, the maintenance people opened my door for the exterminator (no bugs ... they just always sprayed twice a year) WHILE I WAS IN THE SHOWER. The only notice I had was when I walked out of the bathroom dressed in only a towel and thought I was being robbed.
  7. 94503

    94503 LoanSafe Member

    Thanks Sailordude. The bank gave me the combination for the lock box finally and said I can remove it. So I have that removed now and gives me lot of relief.

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