Seterus Demand Letter -default Notice

#1
I am not sure what to expect next from Seterus. A demand letter stated an amount due of a little over $2,900.00, and that was due by September 19th.

By September 14th, the amount due noted on the letter was paid. However, when I contacted Seterus today they stated that the letter also mentioned that "your regular payment may become due by the Expiration Date [09/19/2016]".

Even though the amount due has been paid that was indicated on the letter, a Seterus representative told me that after 09/19/2016 that anything can happen since I had not paid the "regular payment".

Is Seterus likely to proceed with a legal notice of default? Is the Seterus representative just blowing smoke?
Or, is Seterus likely to send a letter that the default notice is no longer in effect?

Please note that I live in Nevada. Also, this is for a demand letter default notice and that no Notice of Default has been filed legally. Any input is greatly appreciated.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#2
Hello,

Before I answer your questions, I have a few questions that I'd like to ask you so I can have a better understanding of your situation.

How many payments have you missed to date and when is your payment due?

How much is your monthly payment?

What was the $2,900 for?
 
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#3
Notice from Seterus stated 8/1/2016 as "Date through which your loan is paid".
The $2,900 is the "Amount Due" on the demand letter that Seterus sent. That $2,900 amount was paid before well before the "expiration date" (09/19/2016).
My regular payment amount is around $1,450. So as of right now, I owe $1,450 that is past due with another $1,450 due on October 1st.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
#4
So technically you are one month behind.

If you do not pay October, you would be 60 days behind and even then, you would not be at risk of foreclosure. It is only when you are 90 days behind that you can be considered in default and at risk of losing your home to foreclosure.

You could not pay October and then pay in November and be fine. You would just have a 60 day rolling late and your credit score would take a hit.
 
#5
Hi just to add to this. I am in the same boat. I was almost 60 past due, got a letter and had just made a payment for half the amount shown (Septembers Payment) due on the demand letter. At that point I setup another payment exactly at the 59 day late mark. (For October) Then I received a new demand letter with an amount. Now I owe for November at this point.

The woman on the phone basically said that once your monthly payment goes past the 45 day mark they send these letters out.

I always make payments over the phone with a human.

My loan was discharged in a BK, we stay and pay, so I don't mind if I make the payments late.

It also is a Fannie Mae loan, but I unfortunately do not qualify for the Principle Reduction program they rolled out in April sine I was current at the time. I don't bother asking Seterus about other options either. I pay when it's convenient, but never got past 60 days late.
 
#6
It was pure scare tactics by Seterus. Once I told them that I know they can't take any legal action until the 90 day mark, they backed off and the phone rep mentioned to me: "We see that you have educated yourself". The best thing to do is to read up on home foreclosure law, especially with the changes made thru the Consumer Protection Financial Bureau, in recent years.
Fortunately, I was able to sell my house thru a regular sale, and I don't have to deal with Seterus any longer. Seterus is very aggresive, and at times smarmy, in their collection efforts.
 

HMPowers

LoanSafe Member
#7
Hi! I hope someone reads this even though the thread is old. I've not had any luck finding a thread that people are responding to & my time is running out.

I have a similar situation: Owe for Mar 1, Apr 1, May 1. I finally found enough to make 1 payment on May 17 & continue with 1 payment each month for a few months until my husband's much improved job begins (job starts July 1). So I thought I would be doing a "rolling 60" even though the payment would be made at Day 77 (which each payment getting a little sooner thanks to the way the payroll date falls).

Problem: Lender called yesterday & said we should pay a payment before they have to send a demand letter. Said once they do that we will have to pay half due within 30 days. Said they "usually send those out around May 5th)

We were denied a forbearance (reason was he was employed ), denied a loan mod cause of negative cash flow (because they misplaced the acceptance letter we sent with his upcoming new job pay). They told us we could send a letter of appeal with his acceptance letter.

I'm so distraught with trying to figure this out! If we can't pay till May 17, & we get a demand letter for half, what is that "half" of? Mar, Apr & May? Or would that include June since the 30 day period to pay would end on June 2? And what if we are late for the next payment?

It's a VA loan in Virginia if that helps. There are no words to say how much I appreciate any advice/info. Thank you!!