There are quite a few ways that a homeowner can stop foreclosure. I thought I would list them here with some brief explanations.
- Loan Workout- A loan workout is when you negotiate with your lender any kind of plan that will benefit both you and the lender when you are delinquent or in default. This is a broad term used in the industry to cover the different options you may have such as a loan modification, repayment plan, short sale, forbearance plan etc.
- Loan Modification- This is when the lender modifies your current mortgage in order to work with you and make your mortgage more affordable. In the past this was only used when a borrower was delinquent but now it is being used before someone is delinquent. This will be the hottest term and way to help people avoid foreclosure.
- Forbearance- This is used most of the time, when a Notice of Default has been filed. You are allowed to delay or reduce payments for a short period, with the understanding that another option will be used at the close of that time to bring your account to a current status. Your lender, if in agreement, will then temporarily cease legal actions.
- Short Sale – This is used when all negotiations for a loan workout have failed and you are upside down on your mortgage meaning you owe more than it’s worth. The lender basically agrees to cooperate in the sale and take a loss. You place the home for sale and any offers are presented to the bank. Unlike a traditional sale when the homeowner decides what offer to take. The bank controls the negotiations and the homeowner has no say in the process. It’s a last ditch effort to save someone’s credit from a foreclosure filing.
- Foreclosure Bail Out Loan – Is a new loan where the defaulted mortgage is paid off. This is usually a hard money mortgage and it is common for interest rates to approach 10-15%. Points can be as high as 5 and terms are usually short. In the 5 year range where a balloon payment will be due for the remaining balance. In order to qualify you must have sufficient equity. Hard money lenders are looking for 65-75% max loan to value and a decent equity cushion. You also have to have ability to repay as in a traditional mortgage.
- Deed-in-lieu - is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the current fair market value of the property exceeds the outstanding indebtedness of the borrower.
Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations. - either the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.
Retrieved from “http://en.wikipedia.org/wiki/Deed_in_lieu_of_foreclosure” - Chapter 13 Bankruptcy – Is primarily used to stop foreclosure of your home. In order to qualify you will have to have a steady income.The bankruptcy petition would need to be filed before the sale date of your property. After filing, you will propose a plan to repay the amount you fell behind on the mortgage. You will also begin to again pay your regular mortgage payments, which under the operation of law must be accepted by your mortgage company. What many lawyers and people do not know is that a forced loan modifcation can be sanctioned by the courts if it is proved that the borrower cannot afford the curent payments.The concept is similar to debt consolidation, but it permits you, the consumer(s), to pay unsecured debt down without accruing interest (student loans are an exception) and without having to deal with those annoying calls from debt collectors. Under a typical plan, you make monthly payments to a court appointed bankruptcy trustee for generally three to five years. The amount of your monthly payment is determined by several factors such as the amount of debt you have, your ability to repay and the extent that you have assets. In exchange for stopping any and all collections activity, one proposes to pay all or, in specific circumstances, a portion of the debt through a Chapter 13 plan. The filing of a Chapter 13 bankruptcy stops ALL collection activity though something called the automatic stay. The automatic stay remains in effect during the life of the case unless the court orders otherwise. You can always refinance or sell your home while under Chapter 13 if you wish to pay off the bankruptcy and move on with your life. The Chapter 13 stops the foreclosure immediately. Often, your only other option would be to refinance, or enter into a repayment agreement with your mortgage company. All too often, they want a double payment each month until you can catch up. If you had that kind of disposable income, you probably wouldn’t be in this situation in the first place.
Moe
Founder & Homeowner Advocate
LoanSafe.org
LoanWorkout.org
951-736-6796 Phone
800-734-8819 Fax
Moe at LoanSafe.org Email
Predatory Lending
I’m in trouble, and I’m asking for your help.
Wells Fargo Home Mortgag
I’m disabled, and just divorced. My home is my heart — it’s everything and the only thing. Wells Fargo Home Mortgage has been stringing me along for months with promises I keep believing and they never come true. Over and over. I’m reading everywhere they use the exact same tactic to everyone. I’m not special. Yesterday as we were coming to a resolution, Rick Kephart told me he was a man of his word. I’ve been lied to so much I told him, please don’t lie to me. He promised all actions would be stopped, no sheriff sales would be scheduled. Then eight hours later my home was back on the sheriff sale list. During our conversation he finally understood the escrow issue where they have really messed me up. However, my house is what I really need your help on.I’ve had it for 14 years and I’ve almost paid the mortgage off.
I am asking you with all my heart to please intervene? I need someone this mortgage company won’t lie to. It has to be someone they respect. It has to be you. Please.
I’m truly scared. I don’t know who to trust. I’m told one thing and something completely different happens. Please, please help me keep my home. I’ve put every single penny I’ve ever had into my home and I’ve got all my retirement in it. I only owe $65,000 on my mortgage and the home is worth almost $200,000.
I’m begging you throw me a life line!!! A quick step certain not to take too long and WILL SAVE MY LIFE!
The following people are the decision makers:
Cara Heiden
Richard Kovacevich
Mike Heid ALL TOP EXECS IN WF HOME MORTGAGE
Mary Coffin
John Stump
Rick Kephart
Executive Communications
Loan Servicing Supervisor
WELLS FARGE HOME MORTGAGE
MAC X2302-02J
800 S Jordan Creek Pkwy
West Des Moines, IA 50266
515-324-3130
Please step in and talk with this lender. Ask them to forgive the debt. It’s the right thing to do. Something Wells Fargo Home Mortgage needs to learn how to do.
Aren’t lender supposed to be helping us? This lender made an error when the escrowed and the problem has snowballed. But they think I should give up my home.
This property has not been sold.
DOS Case No TOES
11/14/2007 07CV04200 10:00am
Plaintiff Defendant
WELLS FARGO BANK NA, ET AL KELLY L HANSEN, ET AL
Attorney Atty Ph
KOZENY & MCCUBBIN L C 314-991-0255
Newspaper
LEGAL RECORD
First Publication Second Publication Third Publication
10/23/2007 10/30/2007 11/06/2007
I AM IN ABSOLUTE SHOCK!
With all my heart I believed everything you said this morning. You assured me several times that all foreclosure proceedings would stop and a sheriff sale would definitely not be scheduled because we were working on an agreement. You told me because I had so much equity in my house that Wells Fargo really wasn’t worried –their goal was to work with homeowners to help them keep their homes.
Discount phentermine.
Discount phentermine. Discount phentermine without a prescription. Discount phentermine discount phentermine discount.
I am in complete shock that this women, Kelly, would have the nerve to ask for a free house. I am a hard working american and if she deserves a free house, I do too!
The problem with America, if you ask me, is that people like her don’t take accountability for their actions. I find it hard to beleive that Wells Fargo, or any other company, would ever try to take someones home. That type of action is not in anyones best interest. Why would a mortgage company WANT to take a house? I mean, come on… They would not be taking payments and they would have to pay for the upkeep.
Sounds to me as if this women, and many others, are out to make the company look bad so they can try to pull a fast one.
Pay your payments, lady! If people like you spent more time figuring out how to make enough to cover your bills (like the rest of us have to) then you would not be in the mess that you are in!
JEFF, WHAT IF YOUR LENDER’S ERRORS
CAUSED YOU TO LOSE YOUR HOME?
FROM KELLY L. HANSEN
ctsmyhon@yahoo.com
Overland Park, KS
Jeff, I agree with you. Everything you said. People who want to keep their homes should buy homes they can afford and make the payments.
Would you consider and post your thoughts on a different side of the situation? After a considerable amount of research, and after reading postings all over the web, and noting the prominent theme in responses to the information I have posted on the web, Wells Fargo Home Mortgage commonly creates escrow errors in prior to perfect mortgage loans. When an anxious home owner contacts customer service for help, over and over they hear promises to correct the errors, but the errors remain. Doesn’t it seem a bit odd to you, that a company as large as Wells Fargo Home Mortgage does not offer any possible way to reach the same Customer Agent twice? So, when promised confirmation letters never arrive, but those ugly letters threatening foreclosure keep coming, a diligent homeowner can never get to the same agent who promised them all the corrections had been made. Instead they are told no record of their call is in their record, homeowner’s everywhere are losing their homes due to their Lender’s mistakes.
In my 14 years has a homeowner, I’ve made one late payment.
Please take a moment to consider the following. If you had a home with over $100,000 in equity you’d worked hard to build up, your mortgage loan was almost paid off, and suddenly a lender errors, errors they acknowledge and promises to correct. But they never do. And they push, never stop pushing, to take your home.
Their own employees confirm this in posts on many sites! Have you ever read consumer sites those I’ve listed below? If not, please take a look. And there are SO many more sites saying the same things about Wells Fargo Home Mortgage.
http://www.ripoffreport.com/searchresults.asp?q5=Wells%20Fargo%20Home%Mortgage&q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21&Search=Search
http://www.planetfeedback.com/index.php?level2=account_public&user_id=659824
HERE IS AN ACCURATE DIPICTION OF MY EXPERIENCE WITH WFHM.
Try to imagine, but try, to be divorced, living on disability, and losing the only thing you have with any equity in you’ve tried to save for retirement?
November, 1993
My original loan, 14 years ago. Advance Mortgage, secured a 5.875%, fixed, 15-year, conventional, Fannie Mae mortgage, #106-1218029978.
Loan Modification
WFHM requests I do a loan modification, but can’t justify why I am required to do so. Why should I have to give up my current, excellent loan? WFHM is the one at fault here.
November, 2006
Wells Fargo Home Mortgage (WFHM) made the first of a series of errors on my home loan. WFHM erred by sending (2) property tax payments and (1) homeowners insurance payment, both of which had already been paid in full by the home owner.
February, 2007
WFHM attempted to increase my monthly payment from $655.00 to $1445.00 to cover their errors! They “created” an escrow account which suddenly had a negative balance in excess of $5,000.00+.
March, 2007
Daily, constant efforts to correct the error were an unbelievable, see-saw, waste of time.
April, 2007
Insurmountable distress and inability to function required a 10 week hospitalization at River Oaks Hospital in New Orleans, Louisiana.
April, 2007
During my hospitalization, WFHM vigorously pursued an illegal default judgment against me.
August, 2007
WFHM received a default judgment against me in the amount of $74,704.66. $10,000 in faulty charges had been added to the true mortgage balance. And, as of this date, December 10, 2007, the default judgment remains on my Public Record.
October, 2007
On October 3, 2007, while WFHM was correcting the errors that had put the home in foreclosure, the home was listed for Sheriff Sale.
FRAUD! Explain to me how WFHM’s mistakes could cause me to lose my home? Many Kansas Laws and consumer protective statutes have been violated. How many other home owners don’t notice errors made on their account because they don’t have time to look deep enough? These mistakes make money for WFHM. And, so do their solutions.
October, 2007
WFHM’s Sharon Cecil, Manager Executive Offices, stepped in. She began removing the incorrect charges, crediting the late, attorney, and sheriff sale fees to correct the balance of my mortgage loan. She promised all foreclosure actions would stop, and she removed my home from the November 14, 2007, Sheriff Sale list.
November, 2007
My credit score has dropped from 640 to 473.
November, 2007
Mr. Todd Boothroyd, Senior Counsel of the Real Estate Division, WFHM, in his November 8, 2007, letter to me, advised all mistakes WFHM had made on my account had been corrected, over $10,000 had been credited back to my account. All negative reports made to all the credit repositories had be reversed and positive remarks were submitted, and all foreclosure actions would stop. All erroneous charges had been credited back to my mortgage account. BUT, I needed to immediately apply for a loan modification (give up my original excellent loan? Why? I hadn’t made any mistakes.) ) but he would resume collection efforts on November 21, 2007, if I didn’t “re-qualify” for a “loan modification.”
AGAIN, I ask Mr. Boothroyd to provide me the legal premise which requires me to do so?
December, 2007 I am disabled. I now receive $914 per month in Social Security Disability. I will never be able to purchase a home again. The equity I’ve built in my home is my only security.
STILL TODAY, WFHM violates consumer protective statutes HUD, RESPA, NAMB, HOEPA, TILA, FOIA, FCRA, FACTA, HMDA, MBA, FDCPA, UDAP, ACORN, CCC, CRC, CRLL, CFED (I reserve the right to add to this list) and state and federal laws in the servicing of my mortgage.
WELLS FARGO HOME MORTGAGE
ATTN: JOY GRIFFITHS
PO BOX 10335
DES MOINES, IA 50306
TEL: 1-800-357-6667
1-866-234-8271
FAX: 515-213-5192
FAX: 515-213-4762
I ask you to please once again try to imagine, you are recently divorced, living on disability ($914 per month.) And by no fault of your own, you are very close to losing the only thing you have in the whole world. How would you feel?
I hear your story but I am a smart enough man to know a few things:
1) The mortgage company would not pay your taxes and insurance if they didn’t need to be paid. I used to work for Citi Mortgage and I know that if you don’t pay your taxes and insurance, the mortgage company has to. The reason is simple… If you don’t pay your taxes your county will place a lien on the property. If you don’t pay your insurance, and the house burns down, the investor is out their money.
I hate when people like you spin a situation to try to get you way. It is absolutely despicable. Get a job your crazy lady and pay your pills!
2) You had to miss more than one payment to be in this situation. A foreclosure is a legal action. An independent judge is involved… You know what that means? The mortgage company couldn’t do “harm” to you without our legal system supporting it. And trust me, if a judge doesn’t think there is a problem with your mortgage company, you would, again, not be in this situation.
You have absolutely no case. Get a job, pay your bills, and STOP (please stop) continuing to damage the American consumers like me who choose to cover their finances and be responsible.
This all boils down to one thing…. You don’t know how to pay your bills. Simply despicable if you ask me.
JEFF, aparently you’re not as smart of a man as you seem to THINK you are.
This fraud is happening to MILLIONS of AMERICANS ALL OVER THE UNITED STATES.
It’s called “MORTGAGE SERVICING FRAUD”
dig up the info on MORTGAGE SERVICING FRAUD, and YOU TOO SHALL SEE YOU ARE ALSO AT RISK OF LOSING YOUR HOME.
Foreclosure could be just right around the corner for you and you don’t even know it.
Now JEFF, don’t BE AN IDIOT!
Do your home work, and study up on the issue before you go Judging people.
Millions of FAMILIES are HOMELESS because of this fraud. AND NO ITS NOT BECAUSE OF THE “ARMS” LOANS PEOPLE SIGNED UP FOR.
Protect your family, or the home of a loved one, and study
MORTGAGE SERVICING FRAUD.
i am in a chapter 13 at this time i am behind on my morage they raised my payments what can i do i have been in my home for 27 years i have little or no equity my home means the world to me what can i do please please help me lydia
i need help to save my home what can i do we our behind on our morage they have raised our payments i am in a chapter 13 what a mess we have i would like to refince my home and lower my payments for five years can this happen if i have bad credit
Can anyone provide me with the contact phone number for me to directly speak with the Wells Fargo “Financial Credit Bureau Dispute Team”??
I was given a fax number (800-231-5089) as to where to send a request letter (explaining extreme difficulties and unforeseen medical expenses with our medically involved son and life threatening surgeries) for assistance in removing several “mortgage lates” from our credit report however, was told that there is no contact phone number – not even “in house” for the rep’s to call to verify my letter of request has been received?!
If anyone could direct me as to where or who to call I would greatly appreciate it. I just get the run around with all five of the phone numbers I have.
Jeff, You need to do your homework little boy.
To Jeff S., you must be an affiliate of Wells Fargo or MERS, or just a rich junkie sipping your liquor and playing on your machine – I can tell you have a hard time getting a girlfriend – your’e most likely a narcissist as well….cross your fingers.
Wells Fargo paid my taxes LATE and then took the late fees out of escrow, which caused the escrow to be short and raised my mortgage payment…they also force-placed insurance WHEN INSURANCE WAS ALREADY IN FORCE…took them 4 months to correct it, but they never paid back the extra interest, so that raises my principle balance…they never sent any written responses to my written complaints – I have 6 different phone #’s and 5 addresses for Wells Fargo – the Customer Service tells you they are investigating, but you have to wait 90 days between calls so they can “investigate”. But they don’t, and when you call back they say they are still investigating, and they never send anything in writing regarding it…fast forward 1 year (four attempts to get them to fix thier mistakes). They buy time so you miss any deadline to file suit for violations of the borrowers rights! So you keep on playing with yourself. The moon is made of cheese, man, and remember Santa Clause slides down chimneys to this day – but don’t ever believe what is really going on.
Only smart people can do that.