Unable to make mortgage payment due to "active foreclosure" (arrears, mortgage company)
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I'm four months behind on my mortgage and I've been in communication with my mortgage company regarding why I've had to default.
Now that I have money to pay my past-due payments, I've tried calling my "home preservation" representative, but they won't take my payment due to my home being in, what they call, "active foreclosure".
I asked them how I make my payments now, but they couldn't tell me. They told me to call back in 48 hours to check and see.
I'm so confused here. Who the heck do I pay? I'll call my mortgage company on Monday, but in the meantime, anyone have any knowledge with this?
Are you trying to bring the mortgage current, or pay just partial amount of what you owe? If you're trying to make a partial payment of the past 4 months, they will decline it as they want the full amount. If you're trying to pay the full amount to bring it current, and they won't accept it, you're talking with the wrong people and keep asking to escalate to a manager until someone takes your money and provides you with a letter of being no longer delinquent.
Are you trying to bring the mortgage current, or pay just partial amount of what you owe? If you're trying to make a partial payment of the past 4 months, they will decline it as they want the full amount. If you're trying to pay the full amount to bring it current, and they won't accept it, you're talking with the wrong people and keep asking to escalate to a manager until someone takes your money and provides you with a letter of being no longer delinquent.
I will be paying the full amount due. I called them again to make a payment and they told me they have to request my loan be reinstated and will call me on Friday with more information. Something tells me they won't call me and I'll be back at the beginning come next week. So frustruating!
If you're going to catch up on the entire amount you are in arrears there is no reason Sun Trust will not take your money and you will be current on your payments. They will most likely not take any amount under the full amount you are in arrears for though at this point.
Its probably because your house is worth more than what the current loan amount is and they can foreclose and sell the property for more than your current loan is worth. There is no reason for a bank not to take payment bringing you up to current.
I can empathize with your situation - in Arizona after four months late the lender can actively pursue a foreclosure because your in a non judicial state. Which means they don't have to go through the court system, instead contact a local attorney to send you out a 30 demand letter. I seriously doubt the false promises - them contacting you on Friday.
Suntrust is a straight forward lender (depending on the investor), they move faster towards foreclosure than other lenders like BOA, Chase, Citi, Ocwen, 1West and Wells Fargo.
Lenders are fairly predictable on how they precede with a foreclosure. Depending on separate state guidelines, and the individual lender. Most lenders will sit on a foreclosure if the property is upside down. Contrary if there is equity you might think a lender will move towards foreclosure. What determines their action is the NVP Score. Every lender has different methods in determining this score.
You have three options -
Pay the arrears, legal fees and penalties and resume your original payment.
Talk to a bankruptcy attorney about filing a Chapter 13 - at this point gather information. Bankruptcy is a last minute ditch effort to stop a foreclosure. It can be filed right before the sale date.
Contact a mortgage attorney to mitigate a loan modification on your behalf.
I do not know your total situation other than what you have shared. It is apparent there is hardship that caused you to go late four months on your mortgage. There could of been a large expense, but my experience is telling me your hardship was caused by an income issue. Maybe because your self-employed? Leading to the question will this happen again?
Option 1 above - if you pay up everything, if there is an income hardship in the future. You should take an affirmative action to start building a nest egg (an emergency piggy bank to draw on for emergencies).
Option 2 above - the bankruptcy will stop the sale, you will be making payments to a trustee for up to 60 months. Like being on probation - if you're late on one payment, the lender can file a relief of stay to remove the property from bankruptcy protection, and you could be looking at another sale date.
Option 3 above - forget about trying to talk to your lender yourself, they are not going to listen. Remember you owe them, they don't owe you, the only people they are responsible is the investors. If your full financial package can be submitted no less than 10 days before a sale date, there is a good chance avoiding bankruptcy. Then working on a loan modification to lower the payment.
Again do not know your details, and I cannot try predict the future without knowing the full story. My name says what we do, plus my Law Firm is licensed in your state. If you need assistance send me a PM. Due to forum guidelines cannot publicly post my contact information.
Good Luck
Last edited by Modification Specialist; 12-03-2013 at 11:07 AM..
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