1,052,211
Bank called the note. My Spidey senses are tingling on this one. Although I don't disbelieve that 'someone' at the bank advised the borrower to quit making payments, without an actual formal workout, the borrower got very bad advice, probably from a bank CSR with an IQ of less than a rock. Or they misunderstood what was being told to them. It depends on the bank, though. We all know folks who didn't make a payment for two years before they were foreclosed on. 5 months is just about enough time to get a notice of default, Redemption period where you do have to pay back everything owed, then foreclosure.
-
Praful Thakkar
Andover, MA
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Lynnea Miller
Bend, OR
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
Richard Weeks
Dallas, TX
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
-
Kat Palmiotti
Kalispell, MT
-
Bob Crane
Stevens Point, WI
3,988,007
I have heard the same thing. The problem is partial payments don't work but there is a mitigation department at most lenders that can help them modify and work it out. He just didn't get routed to the right people.
-
Roy Kelley
Gaithersburg, MD
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Kathleen Daniels, Prob...
San Jose, CA
-
David M. Dwares
Fort Lauderdale, FL
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
-
Candice A. Donofrio
Fort Mohave, AZ
5,104,931
With foreclosure actions by banks, I could believe anything these days. And I agree with Debbie Reynolds because I've heard a variation of the same story.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Richard Weeks
Dallas, TX
-
Lyn Sims
Schaumburg, IL
3,416,038
There is an answer to this problem and it is called FORBEARANCE. The bank can take the back money owed, add it to the payoff amount aka balance owed. Then the borrower can start making regular payments and the mortgage is in good standing. It is different from a loan mod as it addresses the back money owed, not just the interest rate
-
Roy Kelley
Gaithersburg, MD
-
Candice A. Donofrio
Fort Mohave, AZ
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
1,622,432
How awful......
I had a similar story with a friend. He lost his job, white color, high pay. Called the lender..... soon, he lost his house, even shortly he got another job.
It happened a while ago, but I was shocked how fast bank moved to kick them out.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
2,220,654
I have heard it all and yes, that could very well be true.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Peter Testa
Danbury, CT
-
Anthony Acosta - ALLAT...
Atlanta, GA
5,049,450
I don't know but it would not surprise me
-
Kathleen Daniels, Prob...
San Jose, CA
-
Tony and Suzanne Marri...
Scottsdale, AZ
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
400,356
It actually sounds kind of believeable to me.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
4,160,899
Nathan Gesner unusual, but borrower should of discussed the details of payment arrangements.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Peter Testa
Danbury, CT
-
Bob Crane
Stevens Point, WI
716,049
Likely.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
-
Bob Crane
Stevens Point, WI
4,882,355
I would say the lender is well within their rights.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
1,844,301
Yes, that's what happens when you try to negoiate against yourself with a lender. The banks do advise owners to stop making payments & it all depends if the owner believes it's the right thing to do.
Would have been better to do a short with the lender & then no payments would have been due until they sell. In IL, they could live there up to 9 months or so.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Peter Testa
Danbury, CT
921,504
This could very well be a true story. Often told during Banks of Americas caused economic meltdown in '08.
It would be much more helpful if the lender/servicing company was exposed.
Assurance of exposure is the best tool for encouraging good behavior.
This guy needs to play offense and hire an attorney. He may be able to get another year of free lodging and in the process save a nice downpayment.
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Lyn Sims
Schaumburg, IL
5,216,409
The bank had the right to call the note. Stupid, but true. Now they will lose money instead of being whole. The employee who clled the note should be fired! And, the attorney representing the owner, should let the judge know the circumstances. Judge may have a few words of advice to the bank!
-
Roy Kelley
Gaithersburg, MD
-
Kathleen Daniels, Prob...
San Jose, CA
-
Nina Hollander, Broker
Charlotte, NC
2,161,048
This doesn't seem to be an insolated incidence. If you don't have it writing, you can't rely on anything. Unfortunately, your customer got caught up in trusting his lender a little too much without getting advice from an attorney. In retrospect, maybe they could have negotiated a payment plan.
-
Kathleen Daniels, Prob...
San Jose, CA
-
Candice A. Donofrio
Fort Mohave, AZ
-
Nina Hollander, Broker
Charlotte, NC
628,814
Sounds like this person should have been seeking professional legal advise on how to proceed.
-
Bob Crane
Stevens Point, WI
-
Roy Kelley
Gaithersburg, MD
-
Candice A. Donofrio
Fort Mohave, AZ
6,393,609
Nothing surprises me with many of these lenders, they drive these people into foreclosure and have the govt reimburse the lender for their losses.
-
John Pusa
Glendale, CA
-
Roy Kelley
Gaithersburg, MD
-
Bob Crane
Stevens Point, WI
4,319,419
Nathan Gesner - as always, another great answer from Candice A. Donofrio.
-
Candice A. Donofrio
Fort Mohave, AZ
-
Praful Thakkar
Andover, MA
7,836,139
Bad advice and worse results.
I question the source of the advice.
-
Candice A. Donofrio
Fort Mohave, AZ
-
John Pusa
Glendale, CA
1,153,794
The partial payment route may have alleviated this debacle. If the lender accepts the lesser payment a judge might have ruled in their favor thus avoiding foreclosure. So many variables to consider although non-payment is never an option.
-
Candice A. Donofrio
Fort Mohave, AZ
-
Roy Kelley
Gaithersburg, MD
5,772,575
Nathan,
Candice A. Donofrio has the answer. A
-
Roy Kelley
Gaithersburg, MD
-
Candice A. Donofrio
Fort Mohave, AZ
711,852
That does seem strange, Nathan. I know of people who never made a payment for years and were not foreclosed on.
-
Roy Kelley
Gaithersburg, MD
-
Candice A. Donofrio
Fort Mohave, AZ
1,502,998
That's some really bad advice they got. Sounds to me like the bank wanted the house, I don't know of any bank that won't let you catch up. Might be worth talking to a real estate attorney.
-
Candice A. Donofrio
Fort Mohave, AZ
-
Roy Kelley
Gaithersburg, MD
3,345,091
It is my understanding that banks will not accept partial payments. The reason being is that is not the agreement in the promissory note. That said, they could have done a work out with the bank and essentially renegotiated payments. I do believe someone told the person to stop making payments. I know of many people who were told the same thing when I was helping people avoid foreclosure.
-
Candice A. Donofrio
Fort Mohave, AZ
-
John Pusa
Glendale, CA
758,035
Very real & it's why your bank isn't always the best source of advice when facing financial difficulties. The problem here is that the bank wasn't specific as to why they gave this advice & with only half the answer it could easily be misinterpreted as it was.
The person who told him to not bother making partial payments was basically saying "pay us partial & we're going to kick the funds back". Banks don't take partial payments. They do however charge penalties for missed payments so if they were one of the few that took your partial payment then you'd be essentially pissing that money away toward the interest & penalties due & still taking on more penalties while doing it.
When he reinitiated payments he was back due & the only way to get out of the hole is to make full restitution for past payments due & the penalties incurred- upfront. Otherwise you're still chasing your tail like I described in the paragraph above.
-
John Pusa
Glendale, CA
-
Roy Kelley
Gaithersburg, MD
4,800,082
It could be.
-
Roy Kelley
Gaithersburg, MD
-
Anthony Acosta - ALLAT...
Atlanta, GA
1,543,823
Not enough info but gut says NO for two reasons:
Bank not lender makes the call
Short sale was the option over foreclosure
They got bad info. Maybe a lawsuit here?
-
Roy Kelley
Gaithersburg, MD
-
Lyn Sims
Schaumburg, IL
1,513,143
I have heard it here.
-
Roy Kelley
Gaithersburg, MD
-
Nina Hollander, Broker
Charlotte, NC
2,182,552
Yes this now happens alot ! It the Lender's way of being able to Foreclose quicker
-
Roy Kelley
Gaithersburg, MD
-
Michael J. Perry
Lancaster, PA
427,257
I can't verify, but I can say that is pretty harsh and seems borderline predatory.
-
Roy Kelley
Gaithersburg, MD
-
Bob Crane
Stevens Point, WI
392,768
yes, I took had a client receive similar information and treatment.
-
Roy Kelley
Gaithersburg, MD
5,583,278
he was in default....
I remember long ago after the mess hit the fan, there were some banks who would begin foreclosure proceedings if you were in the grace period with your payment!!!
-
Roy Kelley
Gaithersburg, MD
1,574,666
When it comes to lenders, like the government, they are not there to help you! Cynical? Probably!
-
Roy Kelley
Gaithersburg, MD
2,781,173
I remember when foreclosures started years ago and no one inside or out knew what to do. It was pure chaos. Then, all lenders let their legal departments dictate a procedure: Stop paying so we can trigger the foreclosure process and then discuss stays or modifications. That pretty much remained steady for years. Once in closure, you are at the mercy of all
-
Roy Kelley
Gaithersburg, MD
536,943
Such a sad story. I wouls like to know which bank allowed this to happen.
-
Roy Kelley
Gaithersburg, MD
1,712,676
If you give partial payments you are just giving money away. It is all or nothing,
-
Roy Kelley
Gaithersburg, MD
577,750
I think he got some bad avice initially from someone who really didn't know what they were talking about, and unforutnately ended in a bad result. I'm sure if he spoke with someone else at the bank, (who was competent) they should have been able to work something out with respect to payments. This is so harsh...
-
Roy Kelley
Gaithersburg, MD
644,025
based on my experience, it is entirely believable. detestable behavior, but believable.
-
Roy Kelley
Gaithersburg, MD
3,071,489
4,434,127
613,494
Of course it is true...happens all the time.
Most "Lenders" at the bank are paid an hourly rate...and are not licensed professional.
Eve
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Roy Kelley
Gaithersburg, MD
247,599
I use to hear this all the time when I did short sales. Lender says you have to stop making payment for us to consider a modification. Borrower stops making payments, applies for the modification, it denied and borrower is sent to the forecloser department. Sad, wrong, but it happened a lot.
5,868,554
I have heard this scenario too, but have not had experience with foreclosures.
155,337
First Rule - Always get it in writing. Typically a bank wont take (or encourage) a partial payment, so it sounds a bit suspect to me.
292,685
Typically a lender does not begin foreclosure until someone is 90 days past due .
3,986,258
1,311,397
If they had obtained professional help instead of relying of the good graces of the lender I think they would still own their house.
679,404
Actually I have had this conversation with a number of clients in the past. Seems like the banks don't really care to help the homeowners.
417,221
I've had borrowers tell me that back in 2010 Wells Fargo told them not to make a payment to be eligible for a modification. It's not the bank that told them this. Borrowers got advice from the loan modification sharks that swept the industry 2009-2014 - most now closed shop. The sharks told them to give them $5000 and they would do magic legal tricks, or to make payments to their shark account to avoid foreclosure- all lies.
After a borrower is down three payments a lender won't take partial payments as the file is in collection department. The collection department calls them daily to make payment arrangements or foreclose. They tell the borrower they intend to collect the debt. A lender is not going to take five cents on the dollar when the borrower sends a check for a partial payment- huge fees are added as late and legal charges.
Ask him to show you the check returned to him with the bank letter. I assume there will be no check or letter, it was verbal.
He had options - to short sell or to try and modify (there would be a paper trail of try to modify as well.)
They just went through foreclosure in 2018? Was the process maybe years?
In Wyoming, the values have not declined in the past two years to match with they just went through foreclosure.
Send me the credit report I can tell you the true story.
Would I rent to him?
I would require 4 months deposit in advance.
Is his truck clean?
Where is he living now?