How many payments can be missed before foreclosure proceedings

[bmwhongus]

I'm behind 5 payments on my mortgage of 500k. The bank put us in default since 11/09 when I missed 3 payments. As of now, I have a lump sum enough to bring me back current, but will that be too late? Should I pay this month's mortgage or is it already going through the foreclosure process? Obviously, I don't want to be foreclosed on, but it seems like the bank won't give me straight-forward answers...

[ryan]

It might pay at this point, particularly since you are talking about a large lump sum, to buy an hour or two of a lawyers time and see if he/she will communicate with the lender for you. Ask questions of teh atty and get opinions on what the best strategy is.

I would be cautious about paying the bank a large lump sum without assurances that they will clear up your payment history and not pursue FC...assurances your atty might best be able to get for you.

[bmwhongus]

ty for your response ryan :-)

I got a meeting set up with an attorney for next week, just one day before the next payment is due. We've been trying to talk with the guy in charge of our loan (he's in the "Asset Resolution Department") and he keeps trying to waste our time and run us around in circles without giving us direct answers to direct questions such as: 1) How can we get our loan off of default? 2) If we pay up-to-current and keep our payments up religiously for a set period (6mo/1yr) can we get our loan off default?

These are the most basic questions that we have no answer to at all whatsoever, even when asked point blank (their response: "it's possible, but it's a lot of paperwork" "we'll have to get back with you") Obviously, we absolutely need to have something in writing saying the bank will not pursue foreclosure proceedings if all the parameters agreed upon are met, but as of right now, they're just stalling and stalling and stalling...

I wonder if there is a specific amount of time you can spend in default before the bank can start foreclosure proceedings. We will be 1 year in default by 11/10. Is this what the bank is waiting on so they can start foreclosure? It's not like we stopped making payments (they were sporadically made, even as recently as 8/10) and we have been EXTREMELY PROACTIVE in trying to work with the bank, asking for help and guidance, etc. when we first started seeing difficulty in keeping up the payments...

Can a bank really just foreclose on you as they wish, whenever they wish to???

Thanks for the help guys...this is such a great forum for all the people out there in need of advice!!! Keep up the good work!

[AngelinaCatHub]

Ryan's answer was superb. DO make sure this brings you up to date and make them drop any late fees that have accrued. If they won't, bluff them and simply state, "then, I'll walk away, do you want the keys now or later?" They don't want another repo, believe me.

About a time limit. Check your original paperwork. One payment could trigger a demand in full clause. It depends upon what you agreed to and that would be what you signed. 'Hub

P.S. That does not mean they would do that, they could do that.

[bmwhongus]

I don't think we received a Demand In Full clause yet...it's gotta be certified mail, right?

I don't know if this has anything to motivate the bank to foreclose on us, but...

My building/land was valued at $1,000,000 by the county...
My mortgage with the bank is at $540,000 and the 2nd mortgage is with the SBA for 330,000....

Should I crap my pants now, or start putting all my attention on getting ready for Chapter 11?

Once again, thank you guys for all your input and insight :-)

[ryan]

I don't think we received a Demand In Full clause yet...it's gotta be certified mail, right?

No, in many states it can be just regular mail.

[bmwhongus]

so what is the definitive way to find out if the bank has started the foreclosure process? I've checked the county records and there's no lis pendens on the property...yet, and I've checked foreclosure property listings and my property's not listed either...

I'm afraid that I might have misplaced/lost the crucial Demand In Full letter from the bank and/or subsequent foreclosure letters (I'm hoping that's not the case...)

Even after the process of foreclosure has started, there's still an opportunity for me to pay the delinquent amount (that is, the 5 months past due, right?) and be back on track with my loan, correct? Are there any excuses (downgraded credit report, etc.) that the bank can use to keep my status at default???

Once again, thank you guys for your insight!

[discouraged]

Do you have a mortgage foreclosure prevention office near you? Mine was really helpful to me and gave me the form which sets out what happens when. For example, here in Minnesota, it is 4 months until they get serious and then another 2 before the Sheriff's sale.

[iv65536]

Do you have a mortgage foreclosure prevention office near you? Mine was really helpful to me and gave me the form which sets out what happens when. For example, here in Minnesota, it is 4 months until they get serious and then another 2 before the Sheriff's sale.

Me: I sent a DV letter to the bank that also stated that any action taken under Minnesota Statutes, chapters 580, 581, and/or 582 (the statutes that govern foreclosures) shall be considered collection activity for the purposes of the FDCPA. My goal is to get information that will allow me to derail or at the very least delay the process considerably.