Shocked :( Forclosure Filed Just After I Received A Modification Trial Pack

bernieluv

LoanSafe Member
#1
Hello all,

I've been trying to get back on track with my home for about 10 months now. Seterus was/is the servicer.

I recently received a confusing set of mail from Seterus. One said that I was denied my modification request (letter). The other was a modification package, with three coupons to start the trial. I was about to send the check off for the first payment, when I checked my name in the court records and the bank had filed foreclosure on me just yesterday!

I don't understand why/how I have this modification, but am now in foreclosure for the first time ever. So upsetting, and I really do not have the money to hire an attorney for this. Should I make the payments to seterus for the mod? Does seterus even service my mortgage now that it's in foreclosure? How should I respond to the complaint? Thanks much for any help. Now I have to figure out how I'm going to get much needed sleep for work tomorrow :(
 

indeep1959

LoanSafe Member
#2
Be careful with them, I have them as well and they send out confusing letters.
I'm on pins and needles waiting for the sale of my home to close in a couple weeks.

I was behind a couple months when I get an unrequested modification trial. It just showed up. Ok so I made the first payment anyway on it, and made the second. However they never credited me the payment and put it in a "suspense" account, because the payment wasn't for the full mortgage amount.
Yeah no s***, it was a trial payment,wasn't supposed to be for the full amount. They apologized, and corrected it, so I thought. Couple weeks go by and its still in a suspense account. I called back and they said because we didn't have your bank account we couldn't process the payment.
Well why the f*** didn't they tell me that? SO it was due Oct 1, and that had passed, and when I called back they said I was no longer a candidate for a mod since it was now late! I said yeah its your fault! They said they're sorry but theres nothing they can do, just reapply for another mod!
So I did right away online, and waiting to see what happens.

In the meantime, I finally got an offer on my home that I've been trying to sell for years, and I accepted.
I'll make maybe 20k with what little equity there is, but I have a terrible feeling Seterus will f*** that up for me, by filing for foreclosure on me.
I already alerted my lawyer who's handling the closing on this so hopefully everything goes through.
They are extremely tricky, I though Bank of America was bad.
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
#3
I would absolutely make the payments on the modification. They sent you the agreement, you could battle them later if they truly do foreclose. But from my experience in this type of situation it could be the bank protecting themselves in case you don't accept the loan modification given. That way they can still proceed with the foreclosure if you fail to make the payments.

As I always mention I am not a loan mod expert, rather a loan officer that focuses on originating new home loans.
 

isisis

LoanSafe Member
#4
I assume you are in default since foreclosure was just filed. If I were you I'd make no mention to them of the denial letter but go ahead and send the checks for the modification. By sending the modification package they are giving you an opportunity to perform under the contract, by making the payments you are accepting their offer and once the trial payments are made they have a responsibility to provide a permanent modification. That should make it difficult for them to proceed with the foreclosure. I'm not saying they won't but it puts you in a better position to fight the foreclosure should that become necessary.

Don't hire a lawyer, at this point in time it would be a waste of money. Make your payments these next three months but in that time do what your can to learn your legal rights and develop a game plan should they not give you a permanent modification.

Things you can do:

Read the information provided with the modification package paying special attention to the wording.

Begin to document your communication with your servicer by keeping a log of who you spoke with, their title, when you spoke with them and what was said.

If you are denied a permanent modification you should appeal so that's a process you should look into.

If you are treated unfairly or misled to your disadvantage you can respond by sending a Qualified Written Request (QWR) under RESPA in which you can state the issue, ask questions and request that they resolve the problem. They are legally obligated to respond.

You can file a complaint to the Consumer Fraud Protection Bureau (CFPB) on their website and they will notify your servicer.

If you're still having trouble come over to Bagels at a Bar Mitzvah on this site and we'll help you. There are a number of us who have been fighting for our homes for years now and we're always willing to help other people fight back.

https://www.loansafe.org/forum/threads/bagels-at-a-bar-mitzvah.45173/

I know this can be scary. Just hang in there
 

rocoloca

LoanSafe Member
#5
Hello all,

I've been trying to get back on track with my home for about 10 months now. Seterus was/is the servicer.

I recently received a confusing set of mail from Seterus. One said that I was denied my modification request (letter). The other was a modification package, with three coupons to start the trial. I was about to send the check off for the first payment, when I checked my name in the court records and the bank had filed foreclosure on me just yesterday!

I don't understand why/how I have this modification, but am now in foreclosure for the first time ever. So upsetting, and I really do not have the money to hire an attorney for this. Should I make the payments to seterus for the mod? Does seterus even service my mortgage now that it's in foreclosure? How should I respond to the complaint? Thanks much for any help. Now I have to figure out how I'm going to get much needed sleep for work tomorrow :(
I just had the same thing happen to me. I was served papers for foreclosure tonight. I am beside myself. I feel so scared and ashamed at being served. I live out of state and don’t know how I can make the court date.

I don’t have the option of the modification as the payment was due 11/1. I am having a panic attack over all of this. Seterus turned down the first short sale offer that I got and keeps on appraising it way too high. I just am so scared.
 

isisis

LoanSafe Member
#6
Rocoloca,

My apologies for not responding sooner, I missed the notification in my email.

Your feeling are justified and ones most of us know too well. That's why many of us from various states have joined together to share our knowledge of our legal rights and ways to go about enforcing them.

My knowledge is non judicial and it sounds like you are in a judicial foreclose state. For that reason my best advice to you is to post your situation in the thread I mentioned above, Bagels at a Bar Mitzvah, there is link to follow above. All of us on the thread are committed to sharing our knowledge to help other homeowners. Both the combined knowledge and the support have proved useful to many because it is such an isolating position and there's so little reliable information available from regular people who have learned how to fight back.

Remember, you do have rights and be very careful and avoid any website that claims to help you while asking for money.

Hang in there. Many of us have been in our homes for seven or eight years by using various means to protect our rights. Don't give up!
 

indeep1959

LoanSafe Member
#7
Be careful with them, I have them as well and they send out confusing letters.
I'm on pins and needles waiting for the sale of my home to close in a couple weeks.

I was behind a couple months when I get an unrequested modification trial. It just showed up. Ok so I made the first payment anyway on it, and made the second. However they never credited me the payment and put it in a "suspense" account, because the payment wasn't for the full mortgage amount.
Yeah no s***, it was a trial payment,wasn't supposed to be for the full amount. They apologized, and corrected it, so I thought. Couple weeks go by and its still in a suspense account. I called back and they said because we didn't have your bank account we couldn't process the payment.
Well why the f*** didn't they tell me that? SO it was due Oct 1, and that had passed, and when I called back they said I was no longer a candidate for a mod since it was now late! I said yeah its your fault! They said they're sorry but theres nothing they can do, just reapply for another mod!
So I did right away online, and waiting to see what happens.

In the meantime, I finally got an offer on my home that I've been trying to sell for years, and I accepted.
I'll make maybe 20k with what little equity there is, but I have a terrible feeling Seterus will f*** that up for me, by filing for foreclosure on me.
I already alerted my lawyer who's handling the closing on this so hopefully everything goes through.
They are extremely tricky, I though Bank of America was bad.


Just to update my situation if anyone cares, my home sale did go through, and in the meantime Seterus sent me a new mod, which was better then the first mod they sent.
Obviously didnt have to make payments since I sold before the first payment was due (12/1).

Good luck to all in your fights!
I'm done with homeownership for a while.
 

rocoloca

LoanSafe Member
#8
Thanks for your response, guys. Things aren’t looking great for me. I’m trying to pursue a deed in lieu since I haven’t had another offer for short sale.

I have no idea if my second loan will accept a deed in lieu and have to jump through a bunch of hoops for it—and I still have to decide if I can make it to my court date, as I am out of state.

Feeling pretty low about it all. Bawling my eyes out every other day.

Really glad your deal went through, Indeep. I’ve wanted to be finished with my place for the past many years and I am worried that this will lead to deficiency and eventual bankruptcy. A real low.
 

rocoloca

LoanSafe Member
#9
My court date is coming up. I have no intention of fighting and have not retained a lawyer. Any experience of deficiency judgment? When do I stop paying HOA? I keep on waking in the middle of the night freaking out about this. I was denied for deed in lieu for reasons I don’t understand. Foreclosure is imminent.
 

isisis

LoanSafe Member
#10
Rocoloca,

I'm so sorry this is happening to you. I'm in a non judicial state and don't have information that would be useful to you. However, as I mentioned before if you post this information over on Bagels at a Bar Mitzvah there are knowledgeable people fighting foreclosure in judicial states who can answer your questions. This is scary stuff to go through and there are people on that thread with information to help you. You're not in this alone.
 

rocoloca

LoanSafe Member
#11
Thanks Isisis. I haven’t posted on the other thread because I really want to be done with this and move on. I know my credit will be shot—I just am hoping that a huge deficiency isn’t the result because then I will have to declare bankruptcy.
 

isisis

LoanSafe Member
#12
The thread isn't just about fighting back, it could also be about how to get it done and see if a deficiency judgment can be avoided. There are plenty of homeowners in judicial states who would know about that on Bagels. We're all fighting but more than anything we're trying to survive and helping each other figure out the best way to do it.
 

rocoloca

LoanSafe Member
#13
Thanks so much for reaching out again and for directing me to the other thread. I posted there too to see if anyone could offer guidance. Unfortunately my court date is looming and I’ve had a hard time getting a lawyer to return my call.

It really is good to know there are others in the same boat. I just still feel quite helpless about it all.
 

isisis

LoanSafe Member
#14
I think most people facing foreclosure feel like that, it's an isolating experience and there's hardly anywhere to turn for help. The government is no use, you find websites that say they can solve your problems and then pretty soon you see a Visa logo. This is the only website I've ever found where people care and offer what information they have to help others. Not that we're always right but we're learning and we're in this together. Honestly I wouldn't have gotten through this and still have my home of it wasn't for all the people here.

You never got a answer about deficiency judgments. That could either be because no one had an answer or else it got lost in the shuffle. There can be numerous discussions going on at the same time on Bagels. I'll ask it again for you if you like.

Another way to get an answer about a legal question for free and from an attorney is on the website Avvo. The attorneys answer simple questions for no charge as a way of finding clients so you might want to try that.

Hang in there!