New Mortgage company calling the loan due in full

[jebathga]

[hansky]

I'll take a shot at narrowing down the issues -

1) Does the fact that the loan has been sold (once, or several times) alter the provisions in the contract that allow the lender to call a default? Generally, no. The substance of the contract is the same.

2) What insurance do you maintain? The insurance required by the contract. Review your loan documents to see what they require.

3) The Deed in Lieu of Foreclosure. They can ask, and you can decline. From their perspective, they want their money so one can't blame them too much for asking. Obviously, if they want to proceed with foreclosure they can do so. Don't waste energy thinking the lender is out to steal your property/equity. They simply want their money and would rather have money than the property.

4) Aside from the legal/contractual issues, a house really is not a "dream house" if it causes so much stress or financial strain. I'd suggest a dream house is one that you can afford and live in with the kids without so much weight on you. The kids will live the stress with you. Even during and after bankruptcy, the house has to be paid for.

Certainly, see the lawyer for real advice.

[jebathga]

Normally I would not think that they want the property over the money but when they won't accept full payment to cure the default what else is there to believe? When they are sending people to my house to get me to sign a DIL ? Yah I do think they want the property/equity.

Check this out http://www.labbb.org/BBBWeb/Forms/Bu...nyID=100002663

The bbb gives them an "F" rating.

I went to Wilshires home page and they have real estate listings for sale ! They call them HOT properties. They are clearly forclosures due to the condition and the grass is never cut. Umm thinking they want my property not my money due to my equity ! http://www.wfsg.com/realestate/prope...=hotproperties

Does anybody know any law that would protect me. I mean 2 payments missed and they are going to take my property?

[hansky]

Normally I would not think that they want the property over the money but when they won't accept full payment to cure the default what else is there to believe?

It means they have done what lenders do in a default -- declare the entire amount due and payable. That is the norm in defaults and foreclosures. Of course, they COULD reinstate the loan but perhaps because of facts we do not know, they choose to not do so. Perhaps because of the value of the property they think they can just sell and get their money and it is less risky than reinstating the loan. However, if they sell at foreclosure, the get their debt (including fees, etc.). They don't just get to sell the property and keep the rest.

Does anybody know any law that would protect me. I mean 2 payments missed and they are going to take my property?

Remember, they are doing what (presumably) was agreed upon in the initial loan documents you signed. That isn't defending them -- just the reality. You can certainly review the documents - you should have already - to make sure you know the agreements.

Beyond that, obviously this is a board about bankruptcy. I assume you are here because you have considered it?

[downhill]

I wouldn't mess around with Wilshire. They are the ones that pushed us into filing Chapter 13 3 years ago. (We just made our final payment on Dec 29 and are waiting for discharge.)

We have had our house for going on 16 years. 12 years or so ago, we got a second mortgage through Transamerica Financial to build a garage. We redid the second several times for different things. The last time we redid it was in 1995.

We eventually fell behind on our monthly payments (They were less than $300 per month. I wish we would have kept up on them and we wouldn't have been in our current situation.)

Anyway....

Transamerica eventually went away or changed names or something. We didn't hear anything about our second for quite some time.

A few years later, I got a phone call from a major jerk at Wilshire saying that $11,000 or whatever was due immediately on our second mortgage. No less. Right now. (Like I didn't have a dollar to my name much less $11,000). I told him I didn't have it and that was the last I heard from Wilshire...until.....

A few more months later (December 2003), we started getting a ton of mail every single day from investors saying they would buy our house as is. I didn't know what was up because our first mortgage was current.

After several days of receiving all the mail regarding "foreclosure, don't give up your property" etc.... I called one of the numbers on the mailings and asked them what was going on. He said that our house was listed in a foreclosure newspaper for default of a loan dated 1995. They were to sell our house to the highest bidder. I told him that was our second mortgage and that our first mortgage was current. He suggested that I contact our mortgage company asap, which I did.

OMG. It was so stressful. Wilshire had filed to foreclosure on our second. The sale of our house was set for January 2004 and here it was, December 2003, right before Christmas.

I called a well known lawyer that I had seen on tv for specializing in bankruptcy. They set up an appointment for after christmas because they were closing for the holidays. I had to wait out the holidays until our appointment. In the meantime, tons of mail kept coming and a man actually came to our door wanting to buy our house.

We then started getting all the certified letters that came from Wilshire's attorneys. One to my name. One to my husbands name. One to John Doe. One to Jane Doe. (Horrible horrible memories of all that.)

We eventually went in and filed all the chapter 13 paperwork. And we survived all 36 brutal months of payments at $2700 per month.

I know it was our fault for not making our second mortgage payments on time, but they could have contacted us prior to putting our house on the sale block. One time in several years.

I wouldn't mess with Wilshire!!!!!

[downhill]

Jebathga,

I was just wondering if you heard any more from Wilshire? They were a nightmare for us once they were set on foreclosing on our second.