Wait, so you've been paying your mortgage on time every month, and they haven't been applying it to the payment? Just to insurance and escrow? Were you behind in insurance and escrow? If you were paying the full amount of the mortgage that was due, it would be more than you would owe in insurance and escrow. So where did that money go?
I think you need to call your mortgage co back and ask for a detailed receipt of where every single penny went. This sounds strange.
I know, it doesn't make sense. I'm calling as soon as I can get away from my desk again so I'm not broadcasting this crap to everyone I work with.
Ok when you call- Ask for a detailed invoice or receipt of where the funds have been going for the past year (not just Feb, that might help clear things up). Ask them to send written information on how to avoid foreclosure. Ask if they have specific people who work with those in danger of foreclosure and if they do, ask for their contact info. Don't talk to them until you get the written information though, so you know what to ask.
Finally....I cannot imagine the ONLY way for y'all to avoid foreclosure is with that lump sum. I think you have some negotiating power here, especially if you are negotiating with the intent to fully pay back the back amount owed. After receiving the written information, I'd escalate to a manager or supervisor and ask what your options are as far as how you can avoid foreclosure, while making it clear you intend to pay back everything, and aren't trying to get them to cut you a deal.
Do you have more than $7K in your 401K? I know this is a terrible long-term solution, and it costs a ton in taxes and fees, but I thought you could just take an early withdrawl and then pay up at tax time? Or if you have a roth ira you can withdrawl contributions no taxes/fees.
*I* didn't know. We were told that the payment in February would get us all caught up so we continued to pay monthly. Since they applied the money to things like escrow and insurance, it's like we didn't actually make a payment on the house with that lump sum, which means we've been behind ever since.
They said they sent a notice of foreclosure a month or two ago, but we never received it. I asked them to re-send when I was on the phone with them today.
Wait, so you've been paying your mortgage on time every month, and they haven't been applying it to the payment? Just to insurance and escrow? Were you behind in insurance and escrow? If you were paying the full amount of the mortgage that was due, it would be more than you would owe in insurance and escrow. So where did that money go?
I think you need to call your mortgage co back and ask for a detailed receipt of where every single penny went. This sounds strange.
This. I would also think that a foreclosure notice would have to be sent by certified mail and signed for? I don't know for sure but that's what the IRS does.
Oh and ask WHY they applied it to escrow/insurance. What were you supposed to have done differently so that it was applied correctly? What do they require when payment is made, and why did they not inform you any of the other times you called to make payment?!
I am so sorry you are in this situation. I am not sure if this is an option for you or even the best option, but please realize you will make it through this. My mom struggled with her mortgage for YEARS. She lived in constant fear of losing the house. Her parents helped out, the church helped, and eventually when I was old enough, I helped out. But eventually she got so far behind that the mortgage company also told her they were going to foreclose.
She put the house on the market and quickly sold the house. She paid off the mortgage and had a modest excess.
I'm sorry you are scared and under so much stress. Please tell your family or your support system (and also financial advisors). You'll get through this!
Post by VeryViolet on Jul 27, 2015 15:16:23 GMT -5
I don't know much about it but it may be worth consulting a bankruptcy attorney just to see what they say. I think I know who this is and that the medical stuff hasn't bankrupted you yet is kind of more shocking than the fact that you are here. I don't mean that shitty at all our healthcare system is abysmal and healthcare costs are the number one cause of bankruptcy.
I am so sorry you are dealing with this and I hope that you are able to figure something out soon. Also, please please please be kind to yourself and do what you need to keep yourself healthy. Sending you so many hugs.
I know, it doesn't make sense. I'm calling as soon as I can get away from my desk again so I'm not broadcasting this crap to everyone I work with.
Finally....I cannot imagine the ONLY way for y'all to avoid foreclosure is with that lump sum. I think you have some negotiating power here, especially if you are negotiating with the intent to fully pay back the back amount owed. After receiving the written information, I'd escalate to a manager or supervisor and ask what your options are as far as how you can avoid foreclosure, while making it clear you intend to pay back everything, and aren't trying to get them to cut you a deal.
{{{hugs}}} I have faith you can get through this!
I agree. There has GOT to be some way you can get around foreclosure, possibly by showing them the medical bills you owe/have owed in the past? I would sincerely hope if you can provide documentation of how much you've had to pay in medical expenses they could work to get you on a hardship program or reduced payments? I know very little about this, but I am absolutely hoping and praying that you can find a way through this.
On top of calling the mortgage company again, you may want to contact a lawyer that specializes in Foreclosure defense. I have a friend that does this and he has successfully helped a lot of families delay foreclosure or rework their mortgages.
Post by paddywagon on Jul 27, 2015 15:19:29 GMT -5
If you haven't already done so, call the mortgage company again. How many payments are they saying you are behind?
Most mortgage companies and banks don't want to foreclose and will work with you to get caught up on payments/modify the loan. Ask to speak with someone higher up. Someone should be able help you out.
I'm so sorry you're going through this. I hope you get some answers and some help through this.
I don't know much about it but it may be worth consulting a bankruptcy attorney just to see what they say. I think I know who this is and that the medical stuff hasn't bankrupted you yet is kind of more shocking than the fact that you are here. I don't mean that shitty at all our healthcare system is abysmal and healthcare costs are the number one cause of bankruptcy.
I am so sorry you are dealing with this and I hope that you are able to figure something out soon. Also, please please please be kind to yourself and do what you need to keep yourself healthy. Sending you so many hugs.
(heart) > </3 > (heart) Was the clue I gave earlier.
I really don't mind if you guys know it's me, like I said, I'm just paranoid about lurkers. At least this gives me some plausible deniability. Maybe. Kinda.
Alright, I suck at this and should've just posted under my name. lol.
For example- principal/interest - $1,000 Taxes- $350 Insurance- $150
...If you have been paying the full $1500, and they've been applying it all to the taxes/insurance....where the hell is the other $1K?
I know with my mortgage company if I pay extra $ each month and don't tell them to apply the overage to principal it goes to escrow. So if they were behind and sent a lump sum the following month, there is a good chance they will apply the extra to escrow. It's their default process. I would think in this case it would be obvious to put the extra toward the missed payments but my guess is they didn't do that.
I am sorry you are dealing with this but I have to wonder why doesn't your husband know?
*I* didn't know. We were told that the payment in February would get us all caught up so we continued to pay monthly. Since they applied the money to things like escrow and insurance, it's like we didn't actually make a payment on the house with that lump sum, which means we've been behind ever since.
They said they sent a notice of foreclosure a month or two ago, but we never received it. I asked them to re-send when I was on the phone with them today.
Oh gotcha. I can't imagine they just sent something about a foreclosure without sending it certified. I wonder if they are using that as a scare tactic. I am so sorry. HUGS
For example- principal/interest - $1,000 Taxes- $350 Insurance- $150
...If you have been paying the full $1500, and they've been applying it all to the taxes/insurance....where the hell is the other $1K?
I know with my mortgage company if I pay extra $ each month and don't tell them to apply the overage to principal it goes to escrow. So if they were behind and sent a lump sum the following month, there is a good chance they will apply the extra to escrow. It's their default process. I would think in this case it would be obvious to put the extra toward the missed payments but my guess is they didn't do that.
I think that's what's happened. I'm getting ready to leave to go pick up DD but I'm going to have a very forceful conversation with the mortgage company the second I get to the parking garage.
I'll be back on in about an hour. Hopefully with someone's head on a plate.
Also, I'm not sure if you would qualify because of the income/resources limits, but have you looked at applying for SSI for the family member with the medical bills? If you anticipate more medical bills in be future it might be worth a shot because if approved they can be put on Medicaid.
If you have questions I can try to answer them since I work in that field.
Do you have anything that you can sell? Or have a big yard sale maybe? What about credit cards? Can you use one of those checks they send you to do like a balance transfer to a credit card?
“Life is not orderly. No matter how we try to make it so, right in the middle of it lose a leg, fall in love, drop a jar of applesauce.” - Natalie Goldberg
Do you have anything that you can sell? Or have a big yard sale maybe? What about credit cards? Can you use one of those checks they send you to do like a balance transfer to a credit card?
No. This has been going on long enough that we've exhausted all those type resources.
I know with my mortgage company if I pay extra $ each month and don't tell them to apply the overage to principal it goes to escrow. So if they were behind and sent a lump sum the following month, there is a good chance they will apply the extra to escrow. It's their default process. I would think in this case it would be obvious to put the extra toward the missed payments but my guess is they didn't do that.
I think that's what's happened. I'm getting ready to leave to go pick up DD but I'm going to have a very forceful conversation with the mortgage company the second I get to the parking garage.
I'll be back on in about an hour. Hopefully with someone's head on a plate.
Lurker from MM/MMM; get all documentation of how the payments have been applied. A quick Google search led me to people filing complaints with the FDIC against banks for misapplying payments.
“Life is not orderly. No matter how we try to make it so, right in the middle of it lose a leg, fall in love, drop a jar of applesauce.” - Natalie Goldberg
And, can I just add how completely fucked it is that medical expenses in this country can, and do, bankrupt people or force them out of their homes? I'm all for physicians, hospitals, etc. getting paid, but not at the expense of someone's home.
Agreed. Who plans for this type of shit? Insurance doesn't cover everything, and then people are left in a situation like this because no one plans for this kind of exorbitant medical expense.
I'm serious about setting up a GFM. Would you be willing? I would absolutely be willing to chip in. You've had enough stress to deal with, and at least this would be a tangible way we could help.