Loan Modification with Loan Care wanting co borrower form signed

ams853

LoanSafe Member
Long story short. Got behind on mortgage payments. Tried to set up a payment plan with Loan Care. They would only take payments if I agreed to pay all late fees and other fees. Payment was not in our budget but we agreed to it due to it being the only option. Only able to make one payment of the payment plan. Got notice of default and foreclosure proceedings. I’ve applied for loan modification. I purchased the home in 2009, got married in 2012. My husband is no where on the mortgage. Gave birth to our daughter in 2016, wasn’t able to go back to work right away. We were doing fine until my husband lost his overtime pay. So I send in loan modification package and include his income because he’s the only one working currently. I send all information they ask for and now they are asking for him to sign a co-borrower form. I’ve tried calling and finding out what that is and what implications it will have on his credit if we aren’t approved for modification and lose our home. This is all new to me and I don’t know where to start. Loan Care is very hard to talk to and not giving me any information. I’ve tried to find out who owns my mortgage but was basically told I didn’t need to contact them and that Loan Care would be the one handling all of the foreclosure process. Honestly at this point if we could walk away we probably would. We just don’t have anywhere to go without selling our house. We don’t have very much disposable income that we could use to buy or rent a place.

So should he sign the co-borrower form? Do we have any other options?
 

Jzone

LoanSafe Member
Go to your county register of deeds and see who has the lien on the property. Sounds like Loan Care may just be the servicer of the loan, not the lien holder.

You said you bought the home in 2009. What bank did the original mortgage? That was 8 years ago and banks can sell and transfer mortgages, so it may be with someone else by now.

Any equity in the house? If not, you may want to consider Chapter 7 bankruptcy. It will at least temporarily stop the foreclosure process and also allow you to walk away if needed.

But again, start by finding out who holds the lien on the house and go from there.
 

ams853

LoanSafe Member
Yes closed in June 2009 at a small local bank. As far as equity, I have a very small amount. The home needs some minor repairs so I would probably break even if I tried to sell the home. We honestly just want to walk away. We don’t have the extra income to do the repairs and we just don’t want to live there anymore. The housing market is pretty dead where we live. In a town with a population of around 3,000, we have 29 homes for sale and some have been on the market for a while.


Go to your county register of deeds and see who has the lien on the property. Sounds like Loan Care may just be the servicer of the loan, not the lien holder.

You said you bought the home in 2009. What bank did the original mortgage? That was 8 years ago and banks can sell and transfer mortgages, so it may be with someone else by now.

Any equity in the house? If not, you may want to consider Chapter 7 bankruptcy. It will at least temporarily stop the foreclosure process and also allow you to walk away if needed.

But again, start by finding out who holds the lien on the house and go from there.
 

Jzone

LoanSafe Member
If you do decide to walk away, you must file chapter 7 bankruptcy. If you simply dont pay and leave, the bank can and probably will come after you for the balance of your mortgage. Chapter 7 takes away the debt and you are not legally liable for the debt and the house goes to the bank.
There are too many stories on this forum about people simply walking away and then years later are sued for the debt.
 

ams853

LoanSafe Member
If you do decide to walk away, you must file chapter 7 bankruptcy. If you simply dont pay and leave, the bank can and probably will come after you for the balance of your mortgage. Chapter 7 takes away the debt and you are not legally liable for the debt and the house goes to the bank.
There are too many stories on this forum about people simply walking away and then years later are sued for the debt.
According to Arkansas foreclosure laws, they only have 12 months to sue me. I’m actually researching deed in lieu and trying to negotiate no deficiency.
 

Javagold

LoanSafe Member
According to Arkansas foreclosure laws, they only have 12 months to sue me. I’m actually researching deed in lieu and trying to negotiate no deficiency.

I would fight them. Live there as long as possible. And save as much Federal Reserve fiat notes as possible. Why ever leave one day before they fraudclosed on you???
 

kraftykrab

LoanSafe Member
I would fight them. Live there as long as possible. And save as much Federal Reserve fiat notes as possible. Why ever leave one day before they fraudclosed on you???
There could be several reasons. First, imagine a family with young children....would you want to put your children through the experience of being tossed out by police officers....out of their own home? Or, what if someone has medical issues and needs more assistance than they would receive when the police come knocking to remove you? Please, let's not post blanket statements like this when they cannot and do not apply to everyone the same. Leaving the home is not the same as giving up the fight. There are many reasons why leaving on your own terms, at the time of your choosing, is not a bad idea. There are also plenty of cases where the homeowner chose to leave to avoid being forcibly evicted, and continued the fight in the courts. When your fight is in court, you gain nothing by standing strong in front of police officers who have no dog in the fight and are just doing what they were told to do. This is bad information, and that's not what we do here.

Sure, fight them. But you need to learn that the process of fighting them looks different to each of us. It's not for you to decide what the best way is for someone else to "fight them". That's for each of us to decide on our own.
 

ams853

LoanSafe Member
There could be several reasons. First, imagine a family with young children....would you want to put your children through the experience of being tossed out by police officers....out of their own home? Or, what if someone has medical issues and needs more assistance than they would receive when the police come knocking to remove you? Please, let's not post blanket statements like this when they cannot and do not apply to everyone the same. Leaving the home is not the same as giving up the fight. There are many reasons why leaving on your own terms, at the time of your choosing, is not a bad idea. There are also plenty of cases where the homeowner chose to leave to avoid being forcibly evicted, and continued the fight in the courts. When your fight is in court, you gain nothing by standing strong in front of police officers who have no dog in the fight and are just doing what they were told to do. This is bad information, and that's not what we do here.

Sure, fight them. But you need to learn that the process of fighting them looks different to each of us. It's not for you to decide what the best way is for someone else to "fight them". That's for each of us to decide on our own.
Thanks for your reply. Yes we have our own reasons for choosing to leave our home. We live in a tiny town where everyone knows everyone. My husband works with the same sheriff and deputies that would have to throw us out. We would rather it not come down to that.
 

Javagold

LoanSafe Member
Sorry. Don't agree. Recommending saving as much money as possible and Using the corrupt system against itself, is good advice.
 

kraftykrab

LoanSafe Member
Sorry. Don't agree. Recommending saving as much money as possible and Using the corrupt system against itself, is good advice.
You don't have to agree. Each of us has to weigh our options and choose what we feel is best for our family. You can disagree until the cows come home, but that does not change anything. YOU are not impacted by how I choose to fight my fight. So, disagree all you like, please, by all means. But while you're disagreeing, remember this---people come here to learn and develop a plan for THEM....for THEIR family, THEIR situation, THEIR fight. They don't come here to learn YOURS, or to set up a plan for YOUR family or YOUR intentions.

Also, using the system against itself does not require you to stay in the home for as long as possible. Case in point, did you ever consider the fact that if they force a homeowner to leave the home, and are later found to be in the wrong, that the damages are now much greater? If you leave under threat of forceful eviction by police, and you later prove them wrong on appeal, for example, now your claim for damages goes UP. Not only do they lose in the end, but they are on the hook for FAR MORE in damages because they didn't just put you through a court battle wrongfully.....they actually caused you to have to leave your HOME wrongfully. Then, all the extra expenses you incurred because of their fraud---the cost of moving...monthly rent you have had to pay that you otherwise would not have had to pay....the embarrassment of having to leave your home for no good reason...pain and suffering, emotional distress....those things either CANNOT apply, or they apply far less, if you are not forced to leave the home as a result of their fraud. If you stay, and you're still there when all of this comes to a head, your potential damages are far less.

Here's just one example of a couple who left on their own rather than staying to the bitter end when police came to remove them....I think overall, their case probably turned out better than your own, perhaps? Maybe you should rethink your strategy....don't stay just to spite them, because in the end, they don't much care. If you do stay, all they need to do is get the eviction, which takes very little effort at that point, and the police do the rest. It does not even cost them that much.

https://www.miamiforeclosurelawyerb...-to-pay-46m-in-wrongful-foreclosure-case.html
 

kraftykrab

LoanSafe Member
By the way, "using the system against itself" is not "stay until they force you to physically vacate the property".....because once that sheriff comes knocking, you're either leaving on your own two feet, or you're going to get dragged out in cuffs...and "the system" does not care which way you end up leaving. Just like the couple in that link I posted, it's COMPLETELY possible, and often advisable, to leave the house and secure for your family a place to live while you continue the fight. There are no guarantees. Just ask Florida residents, whose Supreme Court has turned the definition of "statute of limitations" completely on its ear to avoid the "free house" syndrome. And meanwhile, even with the fight still continuing, a family still has to LIVE...to FUNCTION. Children still have to go to school, and have a place to sleep at night. Meals still have to be prepared. Laundry has to be washed.

Using the system against itself means that you give the fraudsters enough rope that they hang themselves in a legal sense. Take my case for example. These clowns are on the record as admitting to the court, at hearing and in written motions, that an account number only changes when the loan ownership or servicing changes hands. So NOW, they get to explain to the court why they had to create a paper trail out of thin air, and forge their employee's signature on it, to support their claim that the loan had never been sold---BUT at the same time, they ALSO have to explain to the court why this one account had FIVE different account numbers while they still claim they did not ever sell it or assign a different servicer--and also during that same time, they collected payments from me for years while claiming that they were still the owner and servicer. Here's another example. You go to the trial court, as I did. You present case law examples---lots of them, from the correct appeals court and even the state supreme court--showing that the trial court not only is required to follow those other rulings, but also that those other rulings show that the court CANNOT grant my opponent a judgment under the current circumstances. The trial court chose to do so anyway and ignored everything I said. So now, we are in the appeals court, which will either have to:

A--be consistent with its own history and reverse everything that the trial court just screwed up, OR
B--contradict its own history, in which case I'm just about guaranteed that the state supreme court will not refuse to hear the case.

Here, the state supreme court WILL and DOES take on the cases where the courts contradict themselves, so that the clear path can be established. And, since that same state supreme court has consistently ruled on other cases in agreement with my assertions in my own case, it would now have to contradict itself as well in order for me to lose. THAT is how you use the system against itself---you make it so that the only way the courts can ignore you is to break the biggest requirements that they must themselves follow. "The system" doesnt care one bit if you move out or wait to be dragged out. That is not the point of this fight and never was.
 
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