Can you please help me? I'm desperate and scared

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
My name is Jack Catalano. I'm 37 years old and live in North Haven, CT. My late mother was Marie Catalano. Her pension paid for the mortgage each month. I was unemployed at the time of her death as I was helping taking care of her. When she died, the pension went away. I couldn't afford to make the mortgage payments. I haven't paid the mortgage since December 2017, the month that my mother died. Now, I do have a small part time job so I can start paying some type of payment, maybe, 600 dollars a month. It's not a lot but it something. Can you please help me because I only have until Feb.24 to stay in my house? I can't afford a place to live and I will be homeless.I'm so scared. Can you please help me?
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Hello Jack,

I'm sorry to hear about your plight.

How much do you owe in total and what are your current monthly payments?
 
F

FreeWilly

Guest
Jack they are going to take the house. unless you trick them by telling them you are working with a realtor in trying to sell the house. Eventually, you will have to really do it. Get whatever you can from the house, if not, you should try to live in it as long as you, and save whatever you can until they kick you out.

Or you can get people rent part of the house. Because if they find out you only can afford $600.. they are to take the house ASAP.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Southern California
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I assume your current interest rates is about 6%? If so, your best bet is a loan modification to keep the house. You would have to get the rate down to 1-2% so you can make the payment but then you have taxes and upkeep as in maintenance and repairs.

It may be best to sell as Freewilly suggests and then rent so you can afford a property longterm with no taxes, maintenance and repair costs.
 

isisis

LoanSafe Member
Jun 22, 2010
1,767
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North bay
Jack,

Ten years ago I got a notice of default from Bofa trying to foreclose on my home. I'm still here.

You can fight back and at least gain some time to figure things out. It's not easy, in fact it's probably harder than paying the mortgage but it's not impossible.

First off try not to panic, easier said than done of course but you need your wits right now. Not making payments and losing your home is not an immediate forgone conclusion because there are various laws involved.

You said you have until February 24 to stay in your house. Unless a foreclosure sale has already taken place you have a lot more time than that. Here's a link to foreclosure help in your state.


Under federal mortgage servicing laws, in most cases, by the time a mortgage payment is 45 days’ delinquent, the servicer must appoint personnel to help the borrower with loss mitigation. (Servicers also have to inform borrowers about available loss mitigation options in writing and over the phone, if possible and appropriate.)
Specifically, the servicer must assign a single person or a team that’s accessible to the borrower by phone, who can respond to inquiries and work with the borrower through the loss mitigation process. The appointed personnel must be able to advise the borrower about:
  • available loss mitigation programs
  • how to submit a complete loss mitigation application
  • the status of a submitted loss mitigation application
  • how to make an appeal (if the application is denied), and
  • the circumstances when the servicer may refer the account to foreclosure. (To get an overview of how foreclosure works in your state and find links to articles covering state foreclosure procedures, see our Key Aspects of State Foreclosure Law: 50-State Chart.)
You can also buy time by challenging whether they followed foreclosure procedure or you can challenge the servicing of your loan by sending a notice of error under RESPA. If sent the notice more than seven day before a sale they can't more forward until responding.

You can also file a complaint with the CFPB. It won't necessarily stop a sale but its likely to make them more amenable to working with you.


These are all kind of off the top of my head because I don't know much about you situation and there are so many ways of approaching a foreclosure. Hope it gives you some ideas. Free Willy's advice about a roommate might be a good idea.
 

just_me

LoanSafe Member
Sep 14, 2015
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Try your local Legal Aid. They might be able to help sort this out. You don't want to be homeless! (and neither do they)
 

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
Jack,

Ten years ago I got a notice of default from Bofa trying to foreclose on my home. I'm still here.

You can fight back and at least gain some time to figure things out. It's not easy, in fact it's probably harder than paying the mortgage but it's not impossible.

First off try not to panic, easier said than done of course but you need your wits right now. Not making payments and losing your home is not an immediate forgone conclusion because there are various laws involved.

You said you have until February 24 to stay in your house. Unless a foreclosure sale has already taken place you have a lot more time than that. Here's a link to foreclosure help in your state.


Under federal mortgage servicing laws, in most cases, by the time a mortgage payment is 45 days’ delinquent, the servicer must appoint personnel to help the borrower with loss mitigation. (Servicers also have to inform borrowers about available loss mitigation options in writing and over the phone, if possible and appropriate.)
Specifically, the servicer must assign a single person or a team that’s accessible to the borrower by phone, who can respond to inquiries and work with the borrower through the loss mitigation process. The appointed personnel must be able to advise the borrower about:
  • available loss mitigation programs
  • how to submit a complete loss mitigation application
  • the status of a submitted loss mitigation application
  • how to make an appeal (if the application is denied), and
  • the circumstances when the servicer may refer the account to foreclosure. (To get an overview of how foreclosure works in your state and find links to articles covering state foreclosure procedures, see our Key Aspects of State Foreclosure Law: 50-State Chart.)
You can also buy time by challenging whether they followed foreclosure procedure or you can challenge the servicing of your loan by sending a notice of error under RESPA. If sent the notice more than seven day before a sale they can't more forward until responding.

You can also file a complaint with the CFPB. It won't necessarily stop a sale but its likely to make them more amenable to working with you.


These are all kind of off the top of my head because I don't know much about you situation and there are so many ways of approaching a foreclosure. Hope it gives you some ideas. Free Willy's advice about a roommate might be a good idea.

Thank you for all the insight. First off, to stall for time, I'm going to file for Chapter 7 Bankruptcy. Then I heard that I'm eligible for a reinstatement program. So, there is a little light at the end of the tunnel. If I file for Chapter 7 Bankruptcy by Friday, then the Law Day of Feb. 24 would go away from what I understand.
 

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
Ok, here's an update. Apparently, it going to cost 335 dollars to file for Chapter 7 Bankruptcy. I don't have 335 dollars for that. What do I do now? I'm still eligible for a reinstatement program.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,835
466
1,000
48
Southern California
www.loansafe.org
My concern as I mentioned was the upkeep/maintenance and you are already at 2%. Not sure if you can pull off what has been suggested above but the facts are you cannot afford the home unless you basically get a free house.

Some great advice has been given to you from all sides of the spectrum. You just need to think and act on a plan that works best for you.
 

isisis

LoanSafe Member
Jun 22, 2010
1,767
243
63
North bay
I'd need more info about your mortgage to know what your best move would be. Be more specific about what sort of paperwork you've received and whether a sale is scheduled. Also you're in a judicial foreclosure state and I'm in California which is non judicial, very different. What you could do is to post your situation over on Bagels at a Bar Mitzvah where homeowners fighting the banks in various states share information. Lots of very knowledgeable people to give you suggestions and we'll try to help.

 
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isisis

LoanSafe Member
Jun 22, 2010
1,767
243
63
North bay
As Moe pointed you already have a VERY low interest rate and low payment so it's unlikely you can get anything lower. Your options at this point seem to be either get a roommate who can pay at least $600 a month or challenge their right to foreclose. The first is much easier and more certain, the second will take up much of your time and isn't a sure thing. I don't know what you mean by "law day" but don't file a Chapter 7 until you absolutely have to because it's a short term solution.
 
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OneHugeMess

LoanSafe Member
May 30, 2016
560
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Another update. Apparently, I can pay the 335 dollars in installments which is a good thing.
Some states will also allow you to plead for a waiver, or a partial assistance for the filing fee. There is not much you can do about the Attorneys Fees though.

Look into Upsolve. They may be able to help.
 

Jack Catalano

LoanSafe Member
Feb 13, 2020
31
5
8
If instead of paying 600 dollars a month for the mortgage, what if I was to pay 1200 dollars a month? Would I be able to stay in the house paying that?
 

OneHugeMess

LoanSafe Member
May 30, 2016
560
48
28
If instead of paying 600 dollars a month for the mortgage, what if I was to pay 1200 dollars a month? Would I be able to stay in the house paying that?
You probably need to file for Bankruptcy. In a Chapter 13 Plan, you could potentially keep the house, and pay off the arrears of the course of Five Years. If... you could find a roommate willing to pay $500 - $600 a month, plus half of utilities, it sounds like everything would work out well.

The Mortgage Servicer - will have to decide rather to offer you a reinstatement, a new loan modification, or whatever. It sounds like the loan was previously modified - if you are at 2% Interest. They may be unwilling to work with you on a new mod, but, you never know.

I would focus your efforts on making sure Bankruptcy is filed before Monday. That is crucial, if a Sheriff's Sale is actually scheduled for than.

Can you tell me, what exactly is happening on 02/24/2020? In very specific detail. You said "law day" -- do you mean a court appearance? Has the sheriff's office, or court personally given you notice the home is being auctioned off?