Don't think you can pay and stay for ever

[logansdad]

We are in Michigan. I just left an hour meeting with my lawyer, the banks lawyer. We are current and they sent us to foreclosure this week stating sign or foreclose stating BK is a violation of their mortgage note, your option, No settlements, no mod, no nothing sign or we foreclose. They are a smaller bank and don't have a ton of proprieties right now. I was also told the people that are doing pay and stay that their day will come once things return to normal they too will be given the same choice. There are two many properties to push the hand right now, but don't think you can pay and stay for ever either.

[keepinitreal]

In an earlier post you said your house was worth $155k and the bank would lower the total amount you owed to $172k and no lower. Are you going to stay, or let them foreclose? It wasn't clear in your post if your attorney and you re-affirmed or not.

[logansdad]

I pushed them a little more and they got pissed and sent me to foreclosure my home is 172k appraised worth maybe 155 I tried to get them to take my 2nd down another 5k and they stopped talking to me, so my Attorney called them and we met. The reason some banks are not doing reaffirms now is because they can get it of the books still get payment and foreclose at a time of their liking when the market comes back. Its smart if you think about it.

[logansdad]

Are you going to stay, or let them foreclose? It wasn't clear in your post if your attorney and you re-affirmed or not.

I don't know its going to know up to DW if I were king for a day I would stay for year free, rent another place and be done let them have the loss. I am also a cop and if I get killed she is on the hook for the note she has to let her emotions go and think with her head, so we'll see.

[keepinitreal]

Well if they do foreclose on you, I hope you stay in the house payment-free as long as possible. Hopefully you can save up for a first-month, last-month and deposit on a nicer rental house with a lower rent payment than your current mortgage. Good luck!

[HakunaMatata]

Wow, your bank has high hopes. Did they happen to define "normal" or provide a timeline for the return of "normal"?

Do they intend to foreclose immediately? If so, they are taking a loss. I don't understand how this could be considered smart.

Sorry to hear of your frustrations!

[flyinbroke]

You are in Michigan, you are up to date on your mortgage, and they are fighting to foreclose on you? Real rocket scientists at your bank (sarcasm switch off.)

[nerves]

I chose to reaffirm for a couple of reasons and one of them is what you mentioned - what is going to happen at a later date??? I wasn't going to take any chances with the idiots at my mortgage company. I have about $15,000 equity in my house as well. To be honest, I can't rent anywhere in my town cheaper than my mortgage. We have four big dogs and love our neighborhood. This will also help my credit score. Reaffirming isn't in the best interest for everyone but I think it was for me. Good luck to you Logansdad!

[AngelinaCatHub]

Logansdad: This is only my opinion and everyone here has one.

Here is what I would do. First, keep paying your mortgage and stay there. The first paper you officially get, open a savings (not checking) account in another bank, and call it Mortgage Escrow account for [your name].

Then stop paying the mortgage altogether, but pay it into the escrow account. Fight the company "tooth and nail" and if it goes before a Judge, and they state you also are not paying, have your statements into the escrow account handy. Explaining this to the Judge just may show your good faith that you wish to pay through. He may order them to back off as to date, they have lost nothing. If he orders them to take the money turn it over to the mortgage company. If you have to move, drag feet more but you will have your rental down payments.

I agree with your not wishing to reaffirm this. For other reasons as well as what you listed.

Things are NOT going to get better soon. I feel they are going to get MUCH WORSE and you may be very busy. 'Hub

[HHM]

I bet if you challenged the foreclosure, you might actually win. Many states and courts do hold that filing BK does not constitute a breach of contract and hence giving the lender the right to exercise their default provisions.

Take the advice above, but I would use the saved funds to fight the foreclosure in state court.

[Flamingo]

We are in Michigan. I just left an hour meeting with my lawyer, the banks lawyer. We are current and they sent us to foreclosure this week stating sign or foreclose stating BK is a violation of their mortgage note, your option, No settlements, no mod, no nothing sign or we foreclose. They are a smaller bank and don't have a ton of proprieties right now. I was also told the people that are doing pay and stay that their day will come once things return to normal they too will be given the same choice. There are two many properties to push the hand right now, but don't think you can pay and stay for ever either.

You were provided a copy of this at your house settlement. Pull it out and read it. I'll bet since you did not reaffirm there is a clause in there protecting them.

[HakunaMatata]

Even if the clause permits foreclosure action, how would the State's Right of Redemption work?

[freakedout]

Logansdad, we are in Michigan too and facing the decision to reaffirm our mortgage or not. Our attorney has warned us that what you describe could happen to us if we do not reaffirm. He said a ridethrough might work but can't guarantee. we are upside down in our house, but still want to keep it if possible. Can I ask what bank your mortgage is with?

[keepmine]

Logansdad, we are in Michigan too and facing the decision to reaffirm our mortgage or not. Our attorney has warned us that what you describe could happen to us if we do not reaffirm. He said a ridethrough might work but can't guarantee. we are upside down in our house, but still want to keep it if possible. Can I ask what bank your mortgage is with?

I got a feeling these small banks are gonna get a lot smaller foreclosing on current mortgages.
I just don't see the economics in this. IF {and a big if property vaules recover} they'll still have to pay you your exempt portion. Then, they have the issue of turning around and selling the property. Plus, they've lost the revenue from a preforming loan.

[logansdad]

I got a feeling these small banks are gonna get a lot smaller foreclosing on current mortgages.
I just don't see the economics in this. IF {and a big if property vaules recover} they'll still have to pay you your exempt portion. Then, they have the issue of turning around and selling the property. Plus, they've lost the revenue from a preforming loan.

I don't either. We decided that were leaving for TX or CO. I am staying as long as possible and showing up and fighting every hearing and in the end knowing that we are leaving. Its principle now.