need help to delay foreclosure...sitatuion inside

[tjs1970]

Bought home on a 80/20 loan in august of 2006 and made payments for almost three years. I lost my job, then got a new one, then got laid off from that one, then found a new one and that company went out of business.

We missed our first payment in April of 2009.

Original mortgage through Lenders Direct Capital Corp., immediately sold off to Saxon Mortgage Services for both loans and we paid them every payment until we stopped.

Servicing was to be transferred on April 16th to Ocwen Loan Servicing for both loans and on April 15th, we finally got a Notice of Default on our front door the day before the transfer.

We are in a non judicial state (WA).

Once with Ocwen, we contacted them and mentioned the possibility of a short sale and they sent out a packet right away.

On May 20th, we got a letter certified from Ocwen for each mortgage that stated it was a Notice of Default and that we had until June 20th to dispute the validity.

I sent via certified mail today a Qualified Written Request to them because I believe they forced placed insurance on my home for like 5 grand when I had been paying it all along and put a negative amount by like 5k in my escrow account. I have always paid my taxes and insurance on my own.

I plan on sending a debt validation letter as well to each loan # certified mail.

My only goal here is to stall the foreclosure as long as possible so I can keep living here til things get better.

In WA state they still have to issue a Notice of Trustee Sale which gives me 90 days until an auction. I want to delay this notice from being sent out for as long as possible to keep from being in limbo. Once I get it, I will know I have at least those three months.

I plan on filing chapter 7 in June 2011 which is when I am next eligible to do so. I am not interested in a Chapter 13 as I dont want someone looking over my shoulder with my finances, nor do I want to keep the house, lien strip or not.

Thoughts?

[secondtimer]

Call and ask for loan mod even if you don't want to stay. They'll usually suspend any action until approved or denied.

The process will buy you some time.

Good luck.

[Pandora]

do you qualify for a Ch. 7 - thats the first thing I'd look at. Second thing I'd look into is what is the average timeframe for foreclosure in your state / area? It varies greatly from state to state, so I'd make sure you have that 1 year buffer you're thinking of before you plan to file.

Applying for a mod only works if you can actually get the trial (in writing) - a verbal wont do it, and foreclosure process never stops during all of it, its just "delayed a few months", although more and more lenders are not willing to offer those trials in writing and are doing verbals only, promising the written trial will be "in the mail". Know how it all works before you go this route and know how your lender works as well. If all else fails - you can file BK and put the stay into effect to buy you some time as well, just dont reaffirm anything.