New here and overwhelmed...house has sell date and trying to modify :(

[electricdoc]

I hope someone here can give some insight or advice

Quick recap of what is going on: My husband and I got behind on mortgage payments. I was unable to work due to a high risk pregnancy so I was out of work since february. I have multiple applications out right now and should be working again within a month. We have lots of unsecured debt too and are behind on multiple credit card payments (bad bad decisions from years ago...we previously have made great strides in paying off our credit cards). We are 5,000 behind on our mortgage and it has a sell date (foreclosure) of October 16th. We are in the middle of trying to remodify our loan through Citimortgage, our paperwork is finished and is being reviewed by the underwriters. Our assigned person with Citi is supposed to call us on monday for an update.

So what happens if the loan modification is denied? We don't have $7,000 that they want to catch up our mortgage with legal fees in order to stop the foreclosure. Our credit is awful anyway from defaulted student loans and credit cards from missing them during this time too. We are looking into filing Chapter 13 but I know we have to do it a certain amount of days before the sell date right?

We have about $10,000 in unsecured debt between multiple credit cards/reserve line from old bank account.

I am praying like crazy that our loan modification goes through and once I get back to work (I make decent money as a nurse) then we'll be fine. We don't want to lose our home at all...we have been here for 7 years and have such bad credit that we'll never be able to get another mortgage or even an apartment. Best scenario is we stay in our home. We have a 3 year old and a 2 month old and no where to go if we get kicked out.

[tobee43]

welcome to the forum!

i'd like to sugarcoat this for you, but unfortunately that's a pretty difficult task. some states don't require a judicial proceeding. in states like missouri, there is actually no mortage at all. instead, there is a deed of trust, held by a trustee. In order to take your home in missouri, the lender simply notifies you of a trustee's sale and sells your home. no court involvement is required.

you must have rec'd numerous notices prior to the notice of actual sale? that may have been the time for you to "act". but if we all had hindsight right? i don't know about mo, but 10 days to file for a chapter 13 won't be possible here, but i wouldn't get off the phone until i found an atty that may be able to give you some help. then, again, it's going to cost you, most likely now.

let me just quote this for you and the position you are in right now:


"Make no mistake, in the State of Missouri when a foreclosure sale is cried on the courthouse steps your house will be gone. Do not ignore the letters from the mortgage company or the certified letters from attorneys. You only have the following options to stop a foreclosure: 1) Sell the property, 2) Bring the account current, 3) Redeem the property under the guidelines of Missouri Law, or 4) File a Chapter 13 Bankruptcy which in turn will give you up to 60 months to bring the account current and regain financial control.

For the majority of homes in the State of Missouri a mortgage company may proceed with a foreclosure proceeding without going to court. The only time a mortgage company in the State of Missouri would foreclose in court is when the mortgage or deed of trust does not provide the lender with the “right to sell” when the borrower defaults or there is some other defect in the loan paperwork. This is very rare. Normally you only see a judge when you are being evicted and your house is already sold out from under you.

A borrower defaults on a mortgage when they breach the contract. A breach of contract could be when you stop paying on the account or when you fail to provide insurance on the property or when you fail to pay taxes related to the property. Generally the mortgage company will try and work with you. They will call and send letters requesting that you either bring the account current if you are behind, or that you need to purchase insurance, or you need to pay the taxes related to the home. If you don’t correct the default you will then receive a “Notice of Default and Right to Cure” letter which gives you thirty (30) days to correct the default.

When you receive that “Notice of Default” will depend on the mortgage company. I have seen some debtors go six to eight months without a “Notice of Default” and then I have seen the Notice issued after the debtor has been two months late. Missouri Revised Statute 408.554 provides the when and how notice may be given in the case of default. Be aware in the State of Missouri you only need to be ten (10) days late before the mortgage company begins the foreclosure proceedings. After the “Notice of Default” and if the debtor does not respond the next document you will receive is the “Notice of sale.”

A Notice of Sale within the State of Missouri must be published in a newspaper where the property is located. The notice required by section 443.310 shall set forth the date and book and page of the record of such mortgages or deeds of trust, the grantors, the time, terms and place of sale, and a description of the property to be sold, and shall be given by advertisement, inserted for at least twenty times, and continued to the day of the sale, in some daily newspaper, in counties having cities of fifty thousand inhabitants or more, and in all other counties such notice shall be given by advertisement in some weekly newspaper published in such county for four successive issues, the last insertion to be not more than one week prior to the day of sale, or in some daily, triweekly or semiweekly paper published in such county at least once a week for four successive weeks. Such notice shall appear on the same day of each week, the last insertion to be not more than one week prior to the day of sale, and if there be no newspaper published in such county or city, such notice shall be published in the nearest newspaper thereto in this state. Nothing in this section shall be construed to authorize the giving of any shorter notice than that required by such mortgage or deed of trust. Where the property to be sold lies wholly or in part within the corporate limits of any city having or that may hereafter have a population of fifty thousand inhabitants or more, then the notice provided for in this section shall be published in a daily newspaper in such city and where the property to be sold lies wholly or in part within the corporate limits of a city extending into two or more counties, then the notice provided for in this section shall be published in some newspaper published in the county in which the property lies, in the manner provided in this section for publication in such county, even though such property may lie in a city having a population of fifty thousand inhabitants or more. Where the property to be sold is located in more than one county, the notices required in this section shall be published in each county in which a part of the property is located. Other provisions of this section to the contrary notwithstanding, in any county of the first class not having a charter form of government and containing a portion of a city with a population over three hundred fifty thousand and in any county of the second class containing a portion of a city with a population over three hundred fifty thousand, the notice requirements of section 443.310 and this section may be met by advertisement in some weekly newspaper published in such counties for four successive issues, the last insertion to be not more than one week prior to the date of the sale.

The deed of trust will outline when and where the sale will take place. The sale is usually at the county courthouse on the steps between 9:00 a.m. and 5:00 p.m. There is no formal gathering on the courthouse steps but rather an employee of the law firm will read the sale notice at the appointed time. Once he or she finishes the reading of the legal notice the property immediately transfers to the buyer. If the sale is postponed for more than seven days, the trustee must resend and republish the notice.

You have the right to redeem your property under Missouri law in order to protect your property. However, be aware redemption in the State of Missouri is a very strict procedure and therefore vary rarely occurs. Borrowers only have redemption rights if the buyer at the sale was the lender, but not if the buyer was anyone else. You must give advance notice of your intent, either at the sale or 10 days prior to the sale. Second, you must post a bond within 20 days after the sale, which provides an amount equal to the following: the mortgage interest, any secondary loan interest, and taxes that will accrue for one year after the sale; foreclosure expenses; legal fees; damages; plus 6 percent interest. If you are able to meet these requirements then you can redeem the property within one year by paying off the amount owed plus any fees."

i would contact an atty asap and see if there is anything that can be done. i don't mean to be harsh, i really feel for you, but at this point you have left very few options. i am hoping someone else can chime in with an idea or two for you.

best of luck!

[electricdoc]

thanks....I don't want it sugarcoated. I know we are in a horrible spot. Money management should be included into high school classes because I know nobody ever taught us and both our sets of parents are just as awful financially as we are. My husband's parents filed bankruptcy and previously refinanced their house a thousand times (when you could still refinance before the housing market sucked). My parents don't have a dime to rub together either. It is 100% our fault for sure, I'm not blaming our parents...we made bad decisions. Took on more than we can handle and with one high risk pregnancy and loss of income the whole house of cards crumbled.

I'll come back to this thread and update as I can...I hope I update with a post saying our loan remod went through but I am not hopeful for that. Citibank/mortgage has drug their feet with this and even "lost our paperwork" but neglected to call us and tell us that until only a couple weeks ago. Can't believe our home could be sold from under us in just 9 days. I want to cry.

How on earth does life go so wrong so fast? Ugh

[tobee43]

thanks....I don't want it sugarcoated. I know we are in a horrible spot. Money management should be included into high school classes because I know nobody ever taught us and both our sets of parents are just as awful financially as we are. My husband's parents filed bankruptcy and previously refinanced their house a thousand times (when you could still refinance before the housing market sucked). My parents don't have a dime to rub together either. It is 100% our fault for sure, I'm not blaming our parents...we made bad decisions. Took on more than we can handle and with one high risk pregnancy and loss of income the whole house of cards crumbled.

I'll come back to this thread and update as I can...I hope I update with a post saying our loan remod went through but I am not hopeful for that. Citibank/mortgage has drug their feet with this and even "lost our paperwork" but neglected to call us and tell us that until only a couple weeks ago. Can't believe our home could be sold from under us in just 9 days. I want to cry.

How on earth does life go so wrong so fast? Ugh

well, i just feel badly for you. life is full of terrible lessons but that's not what you need right now.

also, forget the "blame" thing, we have all made mistakes. so i think the best thing you can do is make certain you all have a place to go with your children if you can't get this figured out by the sale date. if you were not in MO, this most likely wouldn't be happening so quickly. it says 10 days late in that state and the banks can act. that is just awful.

if you read above, it's like they have no mercy there. our old property is in nj and it's well over 4 years and they the bank, haven't made one move on foreclosure.

i will be praying for you and yours it will all work out, some how! chin up and get busy finding a nice place to rent!

[keepsmiling]

Electricdoc, so sorry to hear of your troubles. I wanted to welcome you to the forum. I hope all will turn out ok for you.
It just seems like a shame to be forced to file over a relatively small amount.
Wondering, tho... does ANYONE ever get a mod in a state like MO? I can't see where a bank has any impetus to mod ifapplicants can't go without paying for a few months.

[electricdoc]

Electricdoc, so sorry to hear of your troubles. I wanted to welcome you to the forum. I hope all will turn out ok for you.
It just seems like a shame to be forced to file over a relatively small amount.
Wondering, tho... does ANYONE ever get a mod in a state like MO? I can't see where a bank has any impetus to mod ifapplicants can't go without paying for a few months.

I don't know...it doesn't seem like it the more I research. I don't know why they even offer a loan remod if they never grant them, especially since we are in such a time crunch. The assigned person on "our case" is supposed to call this evening for an update.

[keepsmiling]

One more thing to consider... is your house underwater?
Have you consulted with a few attorneys to see what is actually happening in your area? I'd make a few appts today so you can make a more informed decision.

[Pjmax]

Electricdoc, please don't wait for the mod phone call. Today is a holiday for many people, but I would start calling a few BK attorneys, and tell them the house sale date when you call. Please don't give up, and call as many as you need to to find one to help.

[electricdoc]

Thanks everybody. Yes, our house is underwater. We bought in 2005. My best guess looking at our comparables (most of which are foreclosure on their own ) I would say we could list our home for 20-30 grand less than what we paid. Maybe. We have put a TON of money into this home but don't "owe" on it...it was all cash over the 7 years we have lived here before things got hard.

My husband called our Citibank representative for an update...which of course she said we haven't even been assigned an underwriter yet. I am now not even betting on a loan remod...it's not going to happen. Ever. Or at least it won't happen in time to stop the foreclosure.

My husband asked her if we can set up a payment arrangement and she said yes. It would be roughly 2200 down payment and then an extra $500 a month on top of our monthly mortgage payment for 12 months. That would take care of our arrearages and legal fees and stop the foreclosure.

That's what we want to do and she said we don't "have to qualify" for this repayment plan. I am skeptical because we have been told things that were not true or at least a stretch of the truth.

She is supposed to call us back this evening with more details and I am praying that's what we can do. We need 100% reassurance that this will stop the foreclosure.

[LadyInTheRed]

Electricdoc, please don't wait for the mod phone call. Today is a holiday for many people, but I would start calling a few BK attorneys, and tell them the house sale date when you call. Please don't give up, and call as many as you need to to find one to help.

Electricdoc, this is good advice. Your window is very short, but it is possible to file a Chap 13 and stop the foreclosure. Most BK attorneys offer free consultations. Start calling BK attorneys NOW to make appointments. Tell them your foreclosure date and be prepared for some to tell you they can't help you that quickly. Keep calling until you have appointments with 2 or 3 attorneys. Don't wait for Citibank to call you back. If you want to file BK, you need to get moving.

I don't know whether or not it makes sense for you to file BK. It may make more sense to let the house go. But, you need to consult with attorneys so that your decision, even if quick, is an informed one.

[bcohen]

...My husband asked her if we can set up a payment arrangement and she said yes. It would be roughly 2200 down payment and then an extra $500 a month on top of our monthly mortgage payment for 12 months. That would take care of our arrearages and legal fees and stop the foreclosure.

That's what we want to do and she said we don't "have to qualify" for this repayment plan. I am skeptical because we have been told things that were not true or at least a stretch of the truth.

She is supposed to call us back this evening with more details and I am praying that's what we can do. We need 100% reassurance that this will stop the foreclosure.

Unless you get this in writing, I would either file for Chapter 13, or not pay ANYTHING more on this mortgage and get an affordable rental lined up for when the house forecloses. Otherwise, you could exhaust money that you'll need to move into a rental, and still have the house foreclosed upon. Chapter 13 is probably your best bet at this point, because depending who buys the house at foreclosure sale, you may NOT be offered any cash for keys, and the purchaser may attempt to have you evicted as quick as possible. If you don't want to file Chapter 13, I'd get an apartment lined up now.

[electricdoc]

so here is my update

Citi orginally said it's the 2200 payment and then pay the rest of the arrearages over 12 months. Great! We get to stay in the house! Awesome!

Not so much. They called us and said that Fannie Mae has our loan and they won't take the 2200. Only 5300 down payment and pay over 6 months. Well...we can't get 5300 within 6 days. We didn't even know Fannie Mae apparently has our loan now? What the hell.

So Citimortgage basically jacked us around since MAY when we orginally filed for a loan remod for hardship. They kept telling us it'll go through...you'll be okay. Now it's the week before foreclosure and we STILL don't have an underwriter assigned to our case.

So chapter 13 it is.

[tobee43]

so here is my update

Citi orginally said it's the 2200 payment and then pay the rest of the arrearages over 12 months. Great! We get to stay in the house! Awesome!

Not so much. They called us and said that Fannie Mae has our loan and they won't take the 2200. Only 5300 down payment and pay over 6 months. Well...we can't get 5300 within 6 days. We didn't even know Fannie Mae apparently has our loan now? What the hell.

So Citimortgage basically jacked us around since MAY when we orginally filed for a loan remod for hardship. They kept telling us it'll go through...you'll be okay. Now it's the week before foreclosure and we STILL don't have an underwriter assigned to our case.

So chapter 13 it is.

hurry!!! i hope it's in time to stop the sale !

[electricdoc]

hurry!!! i hope it's in time to stop the sale !

We are meeting with an attorney tomorrow at 1:30 and are prepared to file tomorrow...she doesn't seem concerned about the time crunch. If she can't do it I have another attorney lined up to meet with on thursday who specializes in "emergency filing" and his assistant didn't seem to think it'll be an issue.

I feel sick.

[Pjmax]

Please keep us posted Electricdoc. You're in heart and my thoughts. Hope it goes well.