Advice/Help with Foreclosure in Texas

[Finch]

Hello,
Is there anyone here that has advice or experience with the foreclosure process in Texas? I am several months behind and the servicer denied my Loss mitigation application. They said they would be sending me a letter of sale and then I would probably have a sale date in March. I want to keep my home and want to try to catch up on my back payments when I get back to work starting in February. The servicer wouldn't offer me a payment plan or modification. I have read through some of the success stories on this site and I just hope I can be one of them too. Any advice is greatly appreciated and valued.
Thanks so much

 

[OneHugeMess]

Hello,
Is there anyone here that has advice or experience with the foreclosure process in Texas? I am several months behind and the servicer denied my Loss mitigation application. They said they would be sending me a letter of sale and then I would probably have a sale date in March. I want to keep my home and want to try to catch up on my back payments when I get back to work starting in February. The servicer wouldn't offer me a payment plan or modification. I have read through some of the success stories on this site and I just hope I can be one of them too. Any advice is greatly appreciated and valued.
Thanks so much

What was the reason they declined your loan modification request? Who is the servicer or bank that collects your payments? Do you know if your loan is a Conventional, or FHA?

 

[Finch]

Hello, thanks for your reply. 21st Mortgage Corporation is the servicer. It's not an FHA loan. They told me that I wouldn't "qualify" for any kind of payment program but she had no specific reason. She just said my file was being turned over to the legal department. She said if the $8k plus was not paid foreclosure would occur. I don't know what to do next. I am hoping to contact the HOPE foreclosure assistance counselors to see what options I have, but I also wanted to check here because I've read some great information and testimonials here.

 

[OneHugeMess]

First off -- you can stop the foreclosure at any time with a preventative chapter 7 or 13 bankruptcy, so keep that in mind.

Did you fill out a modification packet and send it in, with a copy of bank statements and pay stubs and the like? They can't just say "Yeah, No Mod For You". They have to provide you with a reason, like insufficient income, investor denial, excessive forbearance, etc.

Since it's not FHA, do you know if it's owned by Fannie Mae or Freddie Mac?
Fannie Mae Lookup - https://www.knowyouroptions.com/loanlookup
Freddie Mac - https://ww3.freddiemac.com/loanlookup/

This will help a lot in understanding what kind of assistance you qualify for.

 

[Finch]

Good morning, I truly appreciate your replies. No it's not a Fannie/Freddie loan. Several years ago I was serviced through the Litton Loan and my mortgage has gone through several "hands" (Ocwen, GMAC) and ended up being serviced by 21st Mortgage corporation. I filled out a Loss Mitigation application and was told that I wouldn't be able to afford/qualify for a payment plan or modification package. I researched how to fill out the loss mit app before I sent it in. When I asked about a modification or payment plan they just said no. I thought about the bankruptcy option and will use that as my last resort...only because I don't have credit card debt. But I will do what I need to do. I am upside down in the mortgage so I don't know if that's in my favor. This company primarily deals with pre fab homes and mine is not so I don't know if foreclosing would be an asset for them. All I know is that I'm not giving up easily.

 

[Finch]

Also, when I sent in the loss mitigation application, they did not require bank statements or pay stubs. I included a monthly income and expenses but no "official" paperwork.

 

[OneHugeMess]

The fact that your underwater should be very beneficial to you when asking for a loan modification. The loan will incur a significant loss, and all parties should want a better resolution. In fact, whenever you call, you should repeatedly mention that you are underwater on the loan.

I think you should call back in -- tell them your circumstances have changed, and demand that they mail you a complete modification packet. You want to be reconsidered for a loan mod, and you are not interested in losing the home. Be sure to relate over and over that the home is underwater, and they'll lose money in a foreclosure. I'd also make sure the representative knows that the home is not a manufactured home, but a conventional mortgage on a regular property.

 

[Finch]

OneHugeMess,
Thank you for sharing this information and advice with me. I am going to call today and "demand" a loan modification packet (I like that word demand) I will keep emphasizing that the mortgage is underwater and not a mobile home etc. I'll keep calling over and over if I have too. (Sidebar) Do you think it would be beneficial for me to call one of the housing counseling places like HOPE that assist with and speak to companies about loan modifications, foreclosures etc? I will update you once I get some feedback from them. Thanks again, have an awesome day!

 

[OneHugeMess]

I like the word demand too. In this particular case, I would demand the packet, and not accept No as an answer. Your home is yours, and it should stay that way.

While I feel like you might be able to fill out the paperwork yourself, there could be a lot of value in talking with a HUD Counselor or the HOPE Line. They can help walk through, and answer any questions you have once you get the packet. In some cases, they may be able to even point you towards a state assistance program as well. I would not recommend contacting a "Loan Mod Company" or some sort of law firm you see advertised. Most of those are out to take your $$$$ and run.

https://www.makinghomeaffordable.gov/get-answers/Pages/get-answers-how-to-find-housing-counselor.aspx

 

[OneHugeMess]

Also - it’s very important the paperwork reflects your higher monthly income that starts next month. If you are currently unemployed, I wouldn’t write in a Zero for monthly income.