In Foreclosure

[Havoc1922]

I live in NJ

My husband and I own a home. I am not on the Mortgage, but on the deed. After falling behind in payments, I sent (via e-check on-line banking) the equivalent of 2 1/2 mos. This was sent on the 10th of May. On the 16th, my mortgage company put this into foreclosure. They say they received the money on the 18th and sent it back to me on the 20th.

I had no idea any of this was going on until the 20th when I got concerned that the bank was still showing the e-check to them was still open. My husband and I called the mortgage co. to see what was up.

Initially, we were told that we had three options: 1. Cure the default 2. Give mortgage Co our financial statement and set up a re-paymnet plan 3. Contact the attorney.

We will have all the money by this friday to become completely current. So, my husband called back to advise them of what we wanted to do. They then tell him that the computer shows an amount less than the amount actually due to bring it current, and that we would need to pay that amount and go on a payment plan.

I am SOOOO confused. First of all, I don't wish to go on a payment plan. I want to get current! secondly, this payment plan would only screw us up financially and is of no help.

I want to get out of foreclosure. The lawsuit has been filed. I have the money to get current.

What do I need to do? And why is the mortgage co. giving us the runaround, now?

Also, the lawsuit states that I (my husbands wife) erroneously failed to sign the mortgage note. Which is absolutely false. I was NOT part of the mortgage. I am only on the deed. What the heck is going on? Do I need to answer the summons if I make a payyment agreement with the Mortgage co? Do we or do we not have the right to pay everything up to date and be out of forclosure?

Thanks in advance.

[amortgageman]

By all means you can make the payments to birng your mortgage current.

Most, if not all mortgage companies will require that when you fall behind, make all payments which are due. What I mean by this, is, suppose you still owe March's house payment. After the due date in April, the mortgage company tells you that, "no we want March and April payment. (In the meantime you receive a notice in the mail calling your mortgage due because you are in default, and you are facing foreclosure proceedings).

Unfortunately, they are in their right to do this because of the wording in the Mortgage Document. (This is where new legislation needs to be geared should Congress ever want to slow down foreclosure rates, because then the lender starts tacking on fees to the balance due and can bury a homeowner quickly, just trying to get over a little unfortunate hump in finances).

From the looks of your situation here, you are already two months behind, plus late fees, maybe some miscellaneous attorney fees, and currently owe the third month (which is why they would return your payment).

When you talk to customer service next time, use their speed pay system and have the customer service representative verify that the payment you are paying will bring you current. Get the name of this customer service person and keepdocuments on when the call was made and a confirmation number as well.

While they may offer a repayment plan that will increase your monthly payment for three months or so, resist the temptation to do so. (I got caught on this several years ago, and when credit was pulled, ended up with a 90 day late on my credit report. Hey, it was convenient, right before Christmas, and the higher payments were still affordable!!!!)

Hope this helps.

Regarding your signature on the mortgage note......... Better not be!!!! And it double better not be on your credit report. It's not your's. But, if it is not yours, they may refuse any contact or answers to you about the mortgage.

[Havoc1922]

I would like to know the following:

If I pay the entire amount past due including late fees, will the foreclosure proceedings immediately cease? (I have just received a summons)

What of the mortgage companies "forclosure fees"? Will they be included in the amount? The summons does not include any fees. Just the amount past due with late fees.

I have received conflicting info from two different reps at the mortgage co. They also told us that they received the money I previously paid but since the loan went into forclosure on the 16th, they sent us the money back on the 20th through the mail. I called my bank about this e-check I sent and the bank said the mortgage co never aknowledged they received the money(leaving the money hanging in the abyss)

So the bank says since it was past time, they will be crediting that money back to my account.

That's a relief.

So, my intention is to pay everything past due (this friday) plus the late fees.

The mortgage co won't tell me what the "forclosure fees" are, and tell us to contact the lawyer to find out.

I think this is BS.

If they are telling us that they can put us on some payment plan and everything will be fine as long as I pay a ridiculous amount of money for the next six months, I don't understand why I can't just pay what I owe up to date and go back to normal payments next month.

Also, I think I read in the fair forclosure act that when a borrower cures the default that it was up to the lender to notify the court and the forclosure complaint would be dismissed.

Can anyone verify this?

[amortgageman]

If your mortgage has already been turned over to the attorney's and you have received a summons, then you still have the rights to "Cure" the default.

You need to get in touch with the attornies or the foreclosure departement of the lender.

Who is the lender or servicer of your mortgage?

[Havoc1922]

Wells Fargo

(we'd like to avoid the attorney route if we can settle something with Wells Fargo)

[ghacorp]

The mortgage companies allow the default to be cured, however the problem is once foreclosure proceedings are initiated, typically there are five percent attorney fees tacked on the outstanding balance. In other words if you owed $50K, the lawyers fee would amount to $2,500 which the mortgage company would expect to be repaid in addition to the missed payments and the current payment over a year or two. Some companies will do a tack-on for the arrerage. They all play that game of not accepting partial payments. Meanwhile you can have unapplied electronic funds floating around and not be aware that the company has not accepted the remittance.

[amortgageman]

If you cannot get customer service to take care of things, have them get you in touch with their foreclosure department. They should have all the answers for you, as to what steps you need to take, who to contact. If they are resistant, then contact your state Attorney"s General Office, and let them know they are trying to "STEAL" your home.

It could have been worse, but even Wells Fargo can be a Pain in the ... to deal with.

Good Luck

[Havoc1922]

Is it 5% of the amount of the loan or 5% of the amount in default?

[Havoc1922]

Hi, well, I figured out what is going on... In order to use my right to cure default, I need to go through the attorney. I have a limited amount of money and want to just settle this and get out of forclosure.

I read some of NJ court laws and I understand that they are only allowed to charge me 1.5% for counsel fees. That would be about $85.00 Not too bad. And I guess I will have to pay the $135.00 it cost them to file the lawsuit.

So...... I was writing a letter of intent and want to make sure I don't get the runaround. I am agreeing to pay everything I owe in mortgage payments plus late fees. To that amount I have added the filing fees and counsel fees.

My question is, how do I go about this? Do I just fax them the letter? or should I call them first to advise them and check if my calculations are correct?

I just want to make sure I have things in writing and I don't have time to send this stuff CRRR. Time is of the essence here. I want to have it paid and further action stopped before the 1st of June, as I will then have another mortgage payment due and don't have enough money right now for ALL of this.

Any suggestions? Comments?

Thanx in advance.

[amortgageman]

What has Wells Fargo (attorneys) told you?

Nice find on the state laws.

[Havoc1922]

The attorneys (vultures) say we have to request in writing either by fax or e-mail, to find out what they say we owe and a reply could take up to 5-7 business days.

So... I said forget it. I called the mortgage co and went on a payment plan. This suspends the foreclosure proceedings. I sent them the money western union last night. June's payment is going to be deferred and spread out over six months. My next payment is now due July 1st. I plan on sending them June's payment before the 15th of June and if I do that, I screw up their payment plan.

They can't very well foreclose on me when I'm current now, can they? So all I would owe are these mysterious "foreclosure fees" which have yet to be disclosed to me.

I don't blame them, though. We fell behind in payments and instead of calling them, we just sent in money late. I never thought they'd send it back!

But they (lawyers and Mortgage co) can be very agressive and I would advise ANYONE who gets in this situation to CALL YOUR MORTGAGE CO BEFORE YOU ARE EVEN LATE! if you know you are falling behind.

And don't waste any time once a foreclosure action starts. If I had not had the money, I would be screwed right now.

Thanx for the advice from everyone who replied.

[ghacorp]

If it's only 1.5%, that's really cheap! In Delaware it is 5% of the amount of the remaining principal balance that is due the day the foreclosure suit is filed. If the balance is $100K, the fee would be $5,000! Generally this makes it impossible for homeowners to catch up and some mortgage lenders will not allow modifications such as tack-on's, etc. The arrearage must paid over a year or so. I don't know whether those fees could be challenged in bankruptcy court or not. NJ is a good deal if it's only 1.5%.

[Havoc1922]

If it's only 1.5%, that's really cheap! In Delaware it is 5% of the amount of the remaining principal balance that is due the day the foreclosure suit is filed. If the balance is $100K, the fee would be $5,000! Generally this makes it impossible for homeowners to catch up and some mortgage lenders will not allow modifications such as tack-on's, etc. The arrearage must paid over a year or so. I don't know whether those fees could be challenged in bankruptcy court or not. NJ is a good deal if it's only 1.5%.

Well, that's what I was trying to determine. If it was a % of the principal balance or the amount past due. The NJ law doesn't specify. It says 3.5% for amounts under 5,000. 1.5% for 5,000.-10,000. and 1% for 10,000 and up.

I would assume since they are using such small figures it's based on the past due payments.

It also sounds like Delaware needs some new legislature!

YUCK!

[Havoc1922]

I also wanted to add the link for any other New Jerseyans who might come across this thread.

http://www.judiciary.state.nj.us/rules/r4-42.htm