Notice of Default/Intent to Foreclose-What options do I have?

MRDAVIDALEXANDER

LoanSafe Member
I received a notice of default/intent to foreclose for 2 missed payments. I was 45 days late. I can pay the late payments but I have $5000 in late fees that I can’t afford right now. What options do I have? Do I try to negotiate with them to reinstate the mortgage by just paying the past due? This happened to me with Wells Fargo and they didn’t require the late fees to satisfy the default letter. The mortgage is with Specialized Loan Services.
 

Survivor_IN

LoanSafe Member
Make the late payments. I do not believe that these late fees can prevent you from making payments if the payment only lacks fees. CFPB requires they (servicer) post the payment in these situations. Make sure you document and keep copies of the payment and get it in before the end of the month. At 3 mo past due they will file for foreclosure. Don't let that happen!
 

Survivor_IN

LoanSafe Member
Also, I would even go so far as to send the payment overnite and certified/signed receipt with a brief letter and account notice that you are paying two payments (for months 1 and 2) in the amounts of xxx to be immediately credited to the account. Request that they (servicer) not use this (now cured) past due default status as a means to foreclose as it is your intent to keep the property. Keep it simple. This ensure your interests are protected if they refuse to credit the payment. (and continue to pursue foreclosure on this particular non-payment) You are documenting the paper trail and your attempt to make payments. Watch your bank account on it. Some will after 30 days return the check and others will cash it but not apply it to the account. Both of these actions would be a violation of CFBP rules on servicing. It's easier if they accept and apply the payments. Unfortunately, this does not always happen. They may in fact want your house. Document every call and send follow up letters. Send a "notice of error" if they do not credit the account. Continue to make the recurring payments.
 

Survivor_IN

LoanSafe Member
I am assuming that this is not a charged off loan and is only missing two payments. Paying on a non-performing second loan could reset the statute of limitations and that is a wholly different consideration. The above is what I would do where the Lender is trying to accelerate the foreclosure process by misrepresenting a legitimate default in payment prior to 30 days late status. They combine past due and future due, doubling the default status. You are 60 days late at day 45. It is deceptive.
 

Luca Bayon

LoanSafe Guide
I received a notice of default/intent to foreclose for 2 missed payments. I was 45 days late. I can pay the late payments but I have $5000 in late fees that I can’t afford right now. What options do I have? Do I try to negotiate with them to reinstate the mortgage by just paying the past due? This happened to me with Wells Fargo and they didn’t require the late fees to satisfy the default letter. The mortgage is with Specialized Loan Services.
Hi @MRDAVIDALEXANDER can you please call me about this - I have a few questions! I may be able to point you in the right direction but I'd need a bit more info. Here's my number: (530) 574-5171
 
Top