3 payments past due they want their collateral

[lmorris]

Please help me! We are 3 payments past due on our mobile home loan and I received a certified letter in the mail today saying that the company wants the collateral (mobile home) or we must payoff the entire balance due within 10 days. If we do not turn over the collateral, they will proceed with legal action. I called them & offered to send the past due payments through Western Union to bring the account current. I was told that they do not want my payments but they want the full balance of the loan that we still owe ($9000). What can I do? If I still send the payments, will they accept it? And since that would bring the account current shouldn't that stop all proceedings? Our financial situation is getting better than what it was so we don't want to file Bankruptcy. We had previously filed back in 1998 & was discharged from credit card debt. Any info you couldgive would be appreciated. Thanks!

[aa06a47]

Please help me! We are 3 payments past due on our mobile home loan and I received a certified letter in the mail today saying that the company wants the collateral (mobile home) or we must payoff the entire balance due within 10 days. If we do not turn over the collateral, they will proceed with legal action. I called them & offered to send the past due payments through Western Union to bring the account current. I was told that they do not want my payments but they want the full balance of the loan that we still owe ($9000). What can I do? If I still send the payments, will they accept it? And since that would bring the account current shouldn't that stop all proceedings? Our financial situation is getting better than what it was so we don't want to file Bankruptcy. We had previously filed back in 1998 & was discharged from credit card debt. Any info you couldgive would be appreciated. Thanks!

I'm probably not one to answer this, because I'm pissed at Richard Craniums that are unreasonable like your mortgage company is in this case (based upon information you have given).

1) Tell them to either accept the amount to catch the account up, or you will be forced to file for chapter 13 protection to protect yourself from this pompous action.

2) Ask them to put in writing (if they haven't done so already) there unreasonable attitude, and that they do not want to work with you. That will work in your favor in court.

I am not sure how much equity you have in your mobile home.

[poorme]

Some states require a lender to allow you to cure the default by bringing the loan current. There may be some that don't - so you should become familiar with YOUR state's laws regarding foreclosure AND your mortgage/security deed particulars.

I would NOT just send them the money assuming they have to accept it without knowing your rights first. If it turns out that they have right to demand PIF, then you just gave them $$ for nothing.

For example, in my state (GA) you have the ability to cure default up to foreclosure sale date. Following that, there is a hearing to confirm the sale was within statutes...but no remedy of curing default or refinance exists AFTER the sale. Seems all rights shift to the purchaser at that point.

[SinkingFast]

Poorme is right. You need to check the Foreclosure Laws in your State. Each State is different. You also need to check your Mortgage paperwork. And look ot see if you have a "Right to Sale" clause in your contract. If you do, the Lender can proceed demand payment in full if they want or move to Foreclosure. State Law and your Mortgage will have a direct bearing on your rights and what you can do in this situation.

Different departments handle the payments for mortgage Lenders.. When you pay on a regular basis, your payments go to one place with the nice friendly people who bend over backwards to give you info and help out. When you're delinquent, your account gets sent to a different department where the people aren't so nice to deal with. Our Lender has a 3 stage process. Sounds like your Lender has a 2 stage process.

[lmorris]

How would I go about checking out the foreclosure laws? Plus, The company is in Michigan but we live in Ohio. Which state laws would I look at?

[poorme]

They have to foreclose on you in the county you live in. Google "Ohio + foreclosure" or "Ohio Foreclosure Laws"...you'll find plenty. Also, your state legislature should have the state's laws on a website.

[SinkingFast]

Yeah,.......... The Lender has to follow the laws of the State the property is located in.

Our Lender is Countrywide, which is headquarted in California. Our property is located in Missouri. CW has to follow Missouri laws.

At one website I found this:

* Judicial: The only type of foreclosure in Ohio is judicial foreclosure. The process starts with the lender obtaining conditional title as soon as there is a default in the mortgage. When the borrower makes the loan current, title will transfer back to them. To begin the foreclosure a lawsuit must be filed.
* Deficiency: The lender may obtain a deficiency judgment for a period of two years.
* Redemption: The property may be redeemed only before court confirmation of the sale. After that, there is no redemption.

At another website I found this:

Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instrument: Mortgage
- Timeline: Typically 150 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes
In Ohio, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.

Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees the amount of the borrowers debt and gives him or her a short time to pay. If the borrower fails to pay within that time, the clerk of the court then advertises the property for sale.

At some point prior to the scheduled date of foreclosure, an appraisal of the property must be made by three disinterested freeholders of the county. A copy of the appraised value must be filed with the court clerk and the property must be offered for sale at a price of not less than two-thirds of said value.

The sale may not take place until the notice of sale has been published once a week for three (3) consecutive weeks in a newspaper of general circulation in the county in which the property is located. The sheriff will conduct the sale at the courthouse and the property will be sold to the highest bidder.

Lender's may obtain a deficiency judgment and the borrower may redeem the property at any time before the court confirms the foreclosure sale by paying the amount of the judgment, plus costs and interest.

It looks like you'll have about 5 months easily, maybe a little longer, before you'll have to be out of the house.