Can Mortgage Companies Foreclose If The Home Owner Is Constantly In Contact?

by Nina
(Georgia)

Mortgage-Modification-Answers Home ›
Save My House From Foreclosure ›
Mortgage Foreclosure Questions and Answers >
Can Mortgage Companies Foreclose If The Home Owner Is Constantly In Contact?

I have been behind on mortgage payments for a couple months but stayed in constant contact with my mortgage company. I even attempted a mortgage loan modification program, which they claim I never signed off on. I did.

I have been calling two to three times a month trying to get some resolve and to make sure that my home is okay.

I spoke with several representatives and was told several times to continue sending what I could send and they would post when I reached a full payment.

Last month, I received a check in the mail from "Mortgage Services". Unsure as to why I was receiving a check when I was past due, I called the 800 number listed. I was on the phone for over an hour and transferred back and forth from one department to another, and no one was finding out why I was receiving this check. No one informed me of anything.

I deposited the check and sent the money right back. I sent another payment of $1,000, and after a couple weeks called to inquiry as to why it had not been deposited. At this point, I was told my home had been foreclosed on.

I have not received any notice, paperwork or other information stating my home was foreclosed. I have known this for a week and STILL have not received anything stating that. I have even been in touch with the mortgage companies attorney on this matter and STILL I have not received a notification about mortgage foreclosure.

To me, this incident seems very questionable. I am sending everything I can when I can, I am in constant touch with the mortgage company, I have inquired several times about loan modification, and still they are going to pursue this in our time of economic struggles.

I would like to know Legally what I can do to save my home. I also have a friend that is a judge and I plan on consulting her as to what else I can do. Any insight that y'all can provide would be great! Thanks!

Mortgage Foreclosure Answer:

by Mortgage Foreclosure Expert - Dan North

First off I am not an Attorney so I am not qualified to give legal advise. You should speak to an Attorney licensed in the state of Georgia regarding legal advise.

On an immediate basis read up on the mortgage foreclosure laws for the state of Georgia so that you are familiar with the mortgage foreclosure procedures for Georgia. There is defense against mortgage foreclosure in Georgia but if you can not afford your mortgage it will only delay the foreclosure sale date.

Filing A Complaint Against Your Mortgage Lender

If your mortgage lender is a National Bank then I would file a complaint with the US Department of the Treasury, Comptroller of the Currency Administrator of National Banks on-line Complaint Form or down load the printable complaint form. If your lender is not a national bank then get more information on filing complaints to the correct financial regulatory agencies.

What Are Your Options When Fighting Foreclosure?

Review your options in Loss Mitigation and Home Loan Modification.

This divides into two main categories, keeping your home and leaving your home while avoiding foreclosure. Generally the only way to stay in your home is through a loan modification but it is possible to return your home to your lender through a Deed In Lieu of Foreclosure with a lease to remain in the home, the last is not common but can be done with rent lower than the monthly mortgage payment.

Do you have a Fannie Mae or Freddie Mac loan?
Is your mortgage an FHA loan?

If your mortgage is a Government Guaranteed Loan then your lender has no option and must follow the HAMP Guidelines so the first thing is to find out your mortgage is backed by the government.

Here are links to find out if your loan is Government owned or guaranteed. Does Fannie Mae Own your loan? and Does Freddie Mac own your loan? If either own or guarantee your loan, your lender is required to follow the HAMP guidelines. If the loan is FHA, VA or Rural the guidelines are slightly different but the 31% of your Gross Monthly Income as a target mortgage payment is the same and is mandatory. The final determining factor is the Net Present Value test which determines if it is cheaper to modify or foreclose.

The bottom line is you will have to leave your home if you can not afford it. But that does not mean to give up before you exhaust all your options.

Return to top of Can Mortgage Companies Foreclose If The Home Owner Is Constantly In Contact?

Click here to post comments.

Run Your Own Loan Modification Test and See What You Qualify For Right Now No mystery, no worrying for months wondering if you will be denied a loan modification. Find out now exactly what you qualify for and see a 12 page analysis of each mortgage modification option available to you.

Apply for No-Upfront Fee Hardship Loan Modification (Currently available in CA, OR & WA) See if you qualify for no-upfront fee Hardship Loan Modification. Hardship mortgage loan modification without the front end fees.

DIY Loan Modification Kit This DIY loan modification kit is the exception to the rule. It delivers. Gain the competence you need to submit and negotiate like a PRO - with real insider advice on how to negotiate a modification