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  • Mortgage Co.

    This is another question about the same mortgage company in my prior
    post.
    5 years ago my daughter purchased her first home. She was also
    diagnosed with cancer.
    The mortgage company wouldn't sell her life insurance due to her
    illness so they were aware of her cancer.
    Long story short......she's had 7 surgeries in the last two years
    which meant that her short term disability had to kick in but ran out
    before she was back on her feet again. (*several times). She contacted
    the lender to try and work something out as she was behind. She was
    told she had to be 3 months behind to be eligible for their "work out"
    department and was advised not to pay for 3 months which she would then
    contact them again and they would give her a number to fax in her
    hardship letter (she took down names and dates) which she did indeed
    fax to them. Three days later she recieved her foreclosure notice.
    Hysterically she called the number given to inquire about it and was
    told that "times are tough" and what did you think would happen when
    you didn't make a payment for three months". She was informed that she
    was given incorrect information. The foreclosure department was based
    in California. She then contacted the other number (located in Texas)
    and talked to yet, again, another service rep and asked what happened.
    She apologized for her troubles but said once it has gone to the
    foreclosure department there wasn't anything she could do about it.
    She then called back to Caifornia find out what she could do to get
    out of foreclosure and was told that she could pay $3,600 for a lawyer
    to rewrite the contract and put her debt at the end of her loan but it
    was only a 50-50 chance that they would accept it and she would be out
    her $3,600. Or.....she could pay $3,600 for a lawyer plus her unpaid
    payments that would bring her up to par and she would be quaranteed
    acceptance.
    She is a nurse practitioner, 29 years old, , makes good money expect
    the last two years have been hell.
    She's never had a credit problem until now and even went to consumer
    credit counseling for help at which the foreclosure department noted
    that she kept her credit card payments up but not her
    mortagage.....very nasty. Does she have any legal recourse? Is there
    a place where she can lodge a complaint and get an answer? I would
    think she would be entitled to her $3,600 laywer fee at least. Thanks!


  • #2
    Mortgage Co.

    "Brogan" <[email protected]> wrote:
    This is another question about the same mortgage company in my prior post.
    [Your daughter bought a house, but had trouble making mortgage
    payments due to having cancer. Someone at the mortgage company told
    her to not pay for three months, and that then she could do a work-
    out. The advice was incorrect, and foreclosure proceedings were
    started.]

    There are a few remedies that your daughter has. One is to make up
    all arrearages for missed payments. If she does that within 90 days
    of the notice of foreclosure, the loan gets reinstated. There may be
    additional expenses, but I suspect she could get them eliminated by
    going to small claims court and suing based on the advice she was
    given not to pay for three months.

    If she doesn't make up the arrearage within the time allowed, she's
    got another 21 days (or until the foreclosure sale, which can't occur
    before that time) to pay the entire loan off. That can be done
    either by selling the house or refinancing.

    One thing she should consider: have the original loan documents gone
    over carefully by a financing expert. If the original lender got any
    of the numbers wrong, even a little (e.g. calculation of the APR is
    complex and easy to get wrong) she could theoretically get the
    mortgage voided and all past interest payments she made converted to
    principal payments. I've seen it done.

    That's not your best option, because it's not highly likely you can
    pull it off. But it's certainly something to look into.

    Stu

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    • #3
      Mortgage Co.

      In article <[email protected]>,
      "Brogan" <[email protected]> wrote:
      Does she have any legal recourse? Is there a place where she can lodge a complaint and get an answer?
      Can she prove what the bank told her? If so, she can probably
      get them on giving legal advice without being an attorney. But
      I think she did all this over the telephone, so there is no
      proof. That is a good reason to do this stuff in writing. You
      can take the paper to court and prove things.

      -john-

      --
      ================================================== ====================
      John A. Weeks III 952-432-2708 [email protected]
      Newave Communications http://www.johnweeks.com
      ================================================== ====================

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