shock and awe

nowayoutofthis

LoanSafe Member
I received a letter last week that stated my home was being sold in May by a second mortgage company.
I called them and ask for a payoff but they said it was too late. This was totally unexpected because I had tried in years past to settle but none of the other debt buyers would talk to me about it. This is an old debt from 2007 and has not been paid on since 2014. I was about to settle the loan at the end of 2013 with the original owner of the mortgage, but after they sent me the papers to sign, they sold the account to greentree, who then refused to settle. I was told to stop making payments so they would be more willing to settle. The account has been sold and transferred so many time that I lost track of it and gave up. This was unexpected because I didn't know who had the debt. Please any help or advise would be appreciated. I'm too old to lose my home and start over, plus I have a disabled adult child I am responsible for, this is devastating.
 

nowayoutofthis

LoanSafe Member
I see many have read about my dilemma but no one has offered any advice so I guess theres no hope for my situation. Thanks for reading my post.
 

JohnFL

LoanSafe Member
Have you contacted a local real estate attorney? They must have sent you previous letters stating they were foreclosing on the loan. This usually takes at least six months for them to foreclose, maybe faster in some states.
 

Survivor_IN

LoanSafe Member
You might try Legal Aid. Not sure what State you are in, but you should google your State for info and then contact them to see if you qualify for help. You still have time. Also, some sales are still delay and pandemic courts are not evicting or selling occupied property for health and safety reason. Things are opening up but you never know. Other parts of the world spiralng with it. The FHA program prevents 'move to foreclosure' before June 30. These do change and they have been extended. It might be on your local courts website. If you can get legal assistance, maybe you can find out what happened and have a chance to answer the foreclosure complaint and protect yourself. You can also call the courts and get the complaint and judgement.
 

kraftykrab

LoanSafe Member
I received a letter last week that stated my home was being sold in May by a second mortgage company.
I called them and ask for a payoff but they said it was too late. This was totally unexpected because I had tried in years past to settle but none of the other debt buyers would talk to me about it. This is an old debt from 2007 and has not been paid on since 2014. I was about to settle the loan at the end of 2013 with the original owner of the mortgage, but after they sent me the papers to sign, they sold the account to greentree, who then refused to settle. I was told to stop making payments so they would be more willing to settle. The account has been sold and transferred so many time that I lost track of it and gave up. This was unexpected because I didn't know who had the debt. Please any help or advise would be appreciated. I'm too old to lose my home and start over, plus I have a disabled adult child I am responsible for, this is devastating.

A few things to consider:

1--when you were sent papers to sign, did you sign and return them before the account transferred to Green Tree? If so, you can make an argument that Green Tree was bound to honor whatever agreement was already put in place. You might even be able to make the argument that Green Tree had to honor the agreement either way because according to the standard of law in the courts, Green Tree "steps into the shoes of" the prior creditor. They would have had no more rights---or no less rights--than the prior creditor had. I don't know if this would be successful, just tossing ideas out there to consider.

2--did this ever go to court? You mention a notice of an upcoming sale, but you didn't mention anything about a foreclosure suit. I am unaware of any state that allows a property to be sold without at least a nonjudicial court action. If you were never served or if no foreclosure action was ever filed, then there should be no sale possible.

3--what state are you in? Each state has a statute of limitations. Depending on how this all unfolded, it's at least a possibility that the SOL could come into play on this. This hinges on what happened through the courts--and if it went through the courts, when.
 

nowayoutofthis

LoanSafe Member
A few things to consider:

1--when you were sent papers to sign, did you sign and return them before the account transferred to Green Tree? If so, you can make an argument that Green Tree was bound to honor whatever agreement was already put in place. You might even be able to make the argument that Green Tree had to honor the agreement either way because according to the standard of law in the courts, Green Tree "steps into the shoes of" the prior creditor. They would have had no more rights---or no less rights--than the prior creditor had. I don't know if this would be successful, just tossing ideas out there to consider.

2--did this ever go to court? You mention a notice of an upcoming sale, but you didn't mention anything about a foreclosure suit. I am unaware of any state that allows a property to be sold without at least a nonjudicial court action. If you were never served or if no foreclosure action was ever filed, then there should be no sale possible.

3--what state are you in? Each state has a statute of limitations. Depending on how this all unfolded, it's at least a possibility that the SOL could come into play on this. This hinges on what happened through the courts--and if it went through the courts, when.
Tennessee. Thanks for the suggestions.
 

isisis

LoanSafe Member
Your situation isn't hopeless at all. They can't just send you a letter and sell your house a few weeks later. They can't tell you it's too late to catch up on payments. Foreclosure procedure laws are strict and they protect your rights. Before they can even begin the foreclosure process they have to contact you in writing to tell you about loss mitigation options.

Here's a link to where you can read about the foreclosure process in Tennessee.


You can also file a complaint about the company with the CFPB.


Don't let these guys scare you, stand up for your rights.
 

Survivor_IN

LoanSafe Member
I don't see how they can move this quickly during COVID 19 and with CARES Act protections.

Short of answering with a legal response to the court to register your objections to foreclosure and sale.... You might also consider writing the servicer and requesting a modification. Make it a "legal request" to consider all available options to avoid foreclosure, including a modification. There are certain protections, esp if you have had a reduction in income or increase in expenses related to COVID 19. If you have an FHA loan, you sign a statement declaring such and this doesn't require various proofs. However, private lenders and non-government backed loans, currently make you jump hoops. But do try to get in a request for assistance prior to the sales date. You are running close, but you may have between 1-5 days prior to sale, to provide a modification application.

It is weird that some States, like Tennessee, use BOTH Judicial and Non-Judicial foreclosure. Highly likely to miss a notice or understand how quick this goes in a non-judicial case. (Also possible to be sick with COVID during this notice period too or encounter mail delays, so right now I don't feel this is very fair.) I think this might be what happened given the surprise.
 

Survivor_IN

LoanSafe Member
I just re-read and noticed this is the second mortgage. Why on earth are they doing this NOW? Very fishy. Definitely file the CFPB complaint. You might be able to argue the Statute of Limitation on collecting the debt and lack of notice - such as a notice of default with 30 days to cure - in your defense. I do hope given your situation that you get free assistance from the Legal Aid Society.

According to this, the Statute of Limitations (SOL) for Mortgage Debt in TN is 6 years. Also, 2nd liens usually do not get to foreclose without permission from 1st lienholder. You do have cause on the SOL which is probably why they (deceptively) used the non-judicial process. They may be "fishing" for a payment to revive the SOL. Any payment made needs to be done carefully so as to simultaneously provide that the payment also releases the lien.
Tennessee Debt Relief: Statute of Limitations, Collection & Relief | LendingTree
 
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