Seterus Repayment Plan- Can I Trust It?

Ella10

LoanSafe Member
Jun 13, 2017
2
1
3
48
#1
Hi everyone, I just have a question.

I missed a payment in August of 2016, due to an illness which kept me out of work for a few weeks, and from that point on kept making my payments monthly, but was always a month behind. I would occasionally receive correspondence from Seterus that I was behind and to get in touch so they could assist me. I never did contact them, because I kept telling myself I'd make up the payment.

Finally, in early may, I received a letter stating that they had received my April payment, but that my loan was in default due to the missed month. The word Foreclosure was in the letter, so I called immediately.

I spent an hour + on the phone with a supervisor, who worked out a repayment plan with me, adding $300 to my existing monthly payment for 5 months. He told me that by doing this, and keeping my end of the bargain, I am protected from foreclosure and that as soon as October rolls around, I'll be caught up. He also mentioned that I would still be receiving letters from Seterus that might seem scary, but that they have to send them because of the state I reside in, Massachusetts.

I did receive a confirmation letter a few days later with my payment plan clearly spelled out, and it stated that as long as this plan remains in effect, they will not pursue foreclosure.
I've called them probably 5 times since that phone call, because the letters are really, truly frightening. The last one was on Monday, and it was an acceleration letter, demanding payment for May and June by 7/7. If I do not pay, my entire loan balance will be due.

I called again, and I was assured, like every other time, that these letters are standard, and that I am protected because I am abiding by my repayment plan agreement. I am still terrified, I can't sleep, and I don't know if I can trust what they are telling me. I just want to add, every single person I have dealt with at Seterus has been truly amazing and helpful. Which, honestly shocked me.

Can anyone tell me if there is anything else I should be doing?

Thanks.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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455
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Southern California
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#2
Hello,

The reason that you will still get letters even though you have worked out an agreement is because of the various departments at a mortgage servicer such as the collections department and also the fact that even though you will be under a repayment plan, you will still be in default.

The people you are speaking with I assume are part of the loss mitigation team and the letters as they said are being sent automatically from a collections department. The other reason they do this is because many people do not pay or fail their plans so if they keep the ball rolling legally persay, they wont lose time if you do not make the payments and can then restart foreclosure right away if needed be.

With that said, I would not worry about the letter and worry about making the payments so you can save your home and also have security.
 

Ella10

LoanSafe Member
Jun 13, 2017
2
1
3
48
#3
Thank you so much for responding. It's hard to know whether or not to trust lenders anymore, which is a very sad situation for us all to be in. I completely own my part in this as I did miss a payment, but the scare tactics they use are over the top and cause so much stress.
This forum is amazing and I really appreciate you taking the time to help us all out with our questions, frustrations and fears.
 
Likes: Moe Bedard

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,794
455
1,000
46
Southern California
www.loansafe.org
#4
You are welcome Ella.

Yes, it is a sad situation and many of you are good people who just have some income or life issues that have caused you to get behind and need a little help. Just know that you are not alone and there are a lot of people like you fighting silently.

We are here for you and wish you the best!