Bagels at a Bar Mitzvah

isisis

LoanSafe Member
Hoping everyone can cross their fingers for me, wish for good luck. I submitted a loan mod packet to Select Portfolio Servicing and I’m completely nervous about it.

I never filed for bankruptcy, and really don’t want to, but will likely have to to prevent a foreclosure if they deny me my mod.

Like I said, wish me luck. I’m a nervous wreck about it.
Wishing you luck, OHM. The process of fighting for your home is nerve wracking by nature and filing Chapter 13 is never fun but it's only one of the strategies that may be effective in keeping your home. One of which would be appealing the rejection of a modification if necessary and filing a complaint with the CFPB. Don't forget these guys are under the misconception that we're legally ignorant and completely at their mercy. Try if possible to see this whole thing as a chess game where you always have various strategies set in place regardless of what they do. That can provide at least some slight sense of control to offset the imbalance of power.
 

OneHugeMess

LoanSafe Member
Wishing you luck, OHM. The process of fighting for your home is nerve wracking by nature and filing Chapter 13 is never fun but it's only one of the strategies that may be effective in keeping your home. One of which would be appealing the rejection of a modification if necessary and filing a complaint with the CFPB. Don't forget these guys are under the misconception that we're legally ignorant and completely at their mercy. Try if possible to see this whole thing as a chess game where you always have various strategies set in place regardless of what they do. That can provide at least some slight sense of control to offset the imbalance of power.
I really appreciate is, Isisis. You know -- you are exactly right. In the moment, under pressure and stress, it's very easy to forget that we still have power. I have felt powerless, and sick, for several weeks now. But, it's not over, and I still have control.

Not trying to get political here, but I am so disappointed in our Government. Homeowners were assured that these sales were put aside until January of 2022, and to have auctions going off -- in the middle of a pandemic, is just ludicrous. I really feel like a lot of people have been let down. With the current over-heated housing market, which shouldn't slow down anytime soon, the banks will recover every single red cent of delinquent interest, and property taxes they pay out -- after a sale. There's no loss here, just not the will to help.
 

isisis

LoanSafe Member
Given the prevalence of the deadbeat narrative I'm sure the concept of a homeowner who hasn't made payments in years seeking punitive damages would seem highly amusing to some. That narrative needs to change.

In deposition Bofa's attorney asked quizzically how I'd been harmed, said he just couldn't see it. I responded that I'd been prevented from paying down the loan balance which is the jist of it as it is the purpose of the loan but that's what got me thinking.

I'd like to go on record as giving a shout out to attorney Adam whatever-his-name-was for pointing me in the right direction. Adam, my inadvertent law professor, was of course correct, the salient point, the threshold issue, the Article 3 requirement was damage sustained. But he and sadly most of the legal profession suffer from the misconception that non-payment cancels out damage as indeed it might: if we were renters squatting on property owned by someone else.

But we're not, we've got skin in the game. We put down money and equity far in excess of the lent funds as collateral just to take this amusement park ride. We've made amortized payments, nearly interest only, for years. While their investment is secured by the property; making monthly payments is the only way our investment can be, however briefly, secured. Monthly payments are a obligation but also a right.

There are other rights to which we are implicitly entitled by the mortgage contract. The right to occupy our homes with a sense of security and the quiet enjoyment of the property, the absence of public notices hung on our property advertising a forthcoming sale, the right to spend our time in profitable endeavors rather than fighting a foreclosure, the right to use our funds to decrease the debt rather than on legal costs to protect our property rights.

If the servicer caused the default and initiated foreclosure there is a concrete injury, Survivor. The creditor was under a duty not to prevent or hinder the conditional duty to make payments thus the non-occurrence of the constructive condition was a breach.

"The unjustified failure of an obligor to perform a contract constitutes a breach of that contract. ( Rest., Contracts, § 312).

So no, Adam et al, we haven't received the bargained for benefit and in fact non-payment is more beneficial on your end. It allows you to appear to be the aggrieved party and meanwhile the deadbeat narrative obscures the incentive for impeding performance. The requisite culpable motive just requires the application of rudimentary math skills. The missed payments haven't been lost instead they've accrued and earned interest along with charges and fees increased to serve as a handy and ongoing impediment to performance. And their existence is so prejudicial that it must be referenced in any opening statements, e.g., "Although the Plaintiff hasn't made payments in this millienum..."

Thing is though, impeding performance doesn't allow the condition to become due, the triggering event necessary to begin foreclosure doesn't occur. Yeah, I know we're not supposed to figure that out but what you guys didn't take into account was Al Gore's brilliant invention called the internet. The law's become fair game and readily accessible by the masses. What a buzz kill and not to mention a Pandora's box.
 

Survivor_IN

LoanSafe Member
That's so true Isis. Harm comes in many forms and failure to perform (not applying payments) does prevent paying off the loan, which IS the purpose of the loan, is it not??? The protracted attempts and ongoing, unresolved FC litigation are huge when it comes to the harm done to credit and employment opportunities. I can't even volunteer for the board of zoning.

I can't sell my house or take out an equity line for repairs. I basically live in squalor and still dealing with unrepaired insurance items and damages. (Thank you servicer for perpetually defaulting me so you could have reason to retain those funds?) Only part of the property is habitable. I have made some serious improvements at my own hand on the exterior. The pandemic really caused inflation when it comes to home improvement costs. This "neighbor lady" also trims 200 year old trees and grows flowers. All at my own expense. But I digress.

They are actually the parties *causing* waste (to the real property that supports the loan value) by preventing this use of credit. I also previously had the opportunity to refinance and after requesting a payoff quote, Servicer immediately reversed payments and sent an NOD. Wild west foreclosure days. The did NOT want me to payoff the loan. They wanted the house. I had the opportunity and a willing bank, with employment pending. I could have save 500/month too. They wanted to foreclose. The refinance and employment opportunity were both lost as lender/servicer just ruined my credit. That is a major breach of contract if you ask me.

Also, OHM I argued the moratoriums, both federal and State. lol.It really ticked me off they were pursuing during the pandemic but some courts were allowing foreclosures and evictions that were started before this pandemic. I've been harassed 3 times and I had to answer. The courts were only taking certain types of cases. These cases are NOT prioritty. There is zero they can do without actually showing the note, so everything is contingent on that. They are losing nothing and can't say they are harmed by delays after 10 friggin years.
 

Survivor_IN

LoanSafe Member
Arrgy sounds like you've been burning the midnight ink!

Not sure of all the specifics but you need a motion to stay they sale or an emergency injunction to stay the sale, while the appeals is pending, (to prevent irreparable harm.) They are not going to be harmed as they have a property securing more than the lien. Plus, pandemic going on. I'm really amazed at the advancing of owner-occupied foreclosures during this pandemic.

So I will be in four different courts soon. Court #1 Federal Bankruptcy Court. I received notification today that my house will be sold on the 7th, and if I am still in the house after noon on that day, that I am a trespasser. F-- that. I will file for Chapter 13 before that, housing prices are so high now that it would be stupid for me to simply walk away. I bought the house for $190K and is worth almost $300K.

Court #2 State Supreme Court. I have 60 days or so to file my brief. I am more curious then anything else to see what is going to happen with this. I will probably lose, but I will give it a shot.

Court #3 County Court. I filed my civil complaint against Wells for all the crap they did and sending my note to the FHA and the DASP sale while lying to everyone in the world about it. A nice 70 page (yikes!) complaint with nine causes of action. Lawyer friend proofed it for me, said it looked solid if I have the evidence to back it up. Most likely they will want to settle, and if not I can use the Federal Whistle Blower Act as leverage. Basically give me a check for the value of my house, or not only do you have to settle my lawsuit, but I will also see you in Court #4, where you may have to pay a penalty of three times what you received for lying to the Feds.

Court #4 Federal Court-So if Wells dorks around, then I file a civil complaint under seal in the name of the Federal Government, for Wells lying to the FHA about the status of my loan, etc. The SOL is 6 years, and I have until May 2022, if I have to file, it will probably be around Christmas. This one is a no brainer, Wells reported through FHA neighborhood watch something that was completely untrue and not what they told me and my local court. They got paid an insurance payout of $200K for stating that I was no longer in loss mitigation, which I never was.

Yeah, trying to juggle four courts in the next year or so by myself should be interesting.
 

arrgy

LoanSafe Member
Well I filed for Chapter 13. I got in touch with a BK lawyer who said if my only main source of debt is the mortgage and HOA, then I could stick it out for a year, and simply do an FHA refi, get the servicers off my back and I can cancel the BK, I wouldn't have to stay in BK for 3-5 years.
 

Survivor_IN

LoanSafe Member
Sounds like a plan Arrgy. :) That is such a weight lifted off your shoulders. Now you can pace yourself on that list.
 

OneHugeMess

LoanSafe Member
Well... I finally got the news I was hoping for. SPS APPROVED MY MOD! And... it's almost 40% less than what I was paying before! I have zero clue how in the world they did it. They will not reveal the terms until I've made the 3 trial payments. And then, I'll receive the details with the final modification paperwork.

Part of me is worried I'll have a gigantic balloon payment, but, at the same time, with the money I'm saving, I can stash the cash in a savings account for the meantime, and maybe just refinance the entire thing later. Rates shouldn't be going anywhere in the next couple of years.

To all of you who kept me in your thoughts, thank you, thank you, thank you. I've been so nerve-wracked these past few weeks.
 

OneHugeMess

LoanSafe Member
Well I filed for Chapter 13. I got in touch with a BK lawyer who said if my only main source of debt is the mortgage and HOA, then I could stick it out for a year, and simply do an FHA refi, get the servicers off my back and I can cancel the BK, I wouldn't have to stay in BK for 3-5 years.
Is your current loan, a FHA Loan? If so -- I also agree with the attorney, that I think, you'll be able to get a Rate & Term refinance on the existing loan.

You should be worried, though, if it's left FHA Receivership, and been sold to a 3rd Party Investor.
 

isisis

LoanSafe Member
Well... I finally got the news I was hoping for. SPS APPROVED MY MOD! And... it's almost 40% less than what I was paying before! I have zero clue how in the world they did it. They will not reveal the terms until I've made the 3 trial payments. And then, I'll receive the details with the final modification paperwork.

Part of me is worried I'll have a gigantic balloon payment, but, at the same time, with the money I'm saving, I can stash the cash in a savings account for the meantime, and maybe just refinance the entire thing later. Rates shouldn't be going anywhere in the next couple of years.

To all of you who kept me in your thoughts, thank you, thank you, thank you. I've been so nerve-wracked these past few weeks.
I'm happy for you, OHM! After you've enjoyed the requisite deep breaths and relief don't forget the chess game isn't over quite yet. Remember that servicers are sneaky devils by nature so beware the bait and switch. Over the next three months research your rights in a trial modification so you're prepared if the final terms deviate significantly or in case despite making payments you're not approved for the modification. It's been known to happen. But for now just enjoy!
 

moretrouble

LoanSafe Member
How is everybody doing during this second surge of Covid? Hope you all doing well? One of my friend/used-to-be coworker passed away last month at the age of 71, leaving the house and approx 2M to the spouse. That event further emphasizes the value of time over money for some of us. I am enjoying my time, have not touched legal stuff since early May (after sending my complaint to the big boys). My case is closed without BOfA trying to enforce the foreclosure judgement, they also stop inspecting my house (and charging a fee) and erase all fraudulent assignments recorded in the county office.
 

Survivor_IN

LoanSafe Member
Hey MT! Positivity rate here is 12 percent. Since we had a couple months of no masks after so many vaccinations, no one wanting to do that much and it is scary. Of course the GOP and Dems fought battles and GOP won on the opening the economy thingy. No mandates here and kids in school getting sick. YIKES. I'm just plugging along working on wrapping up origination fraud before SOL deadlines. Happy to not be harrassed in courts currently. Of course this could change. lol.
 
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