Will they Foreclose?

[mickeyme]

So we stop paying our 2nd and I just received a certified letter notice from them. I can not pick it up until later this week but I am afraid it is a foreclosure notice....ugh.

We are ch7 discharged as of 01/06/09. Here are our stats:
Est Value - $198K
1st - $192K
2nd - $63k

It wouldn't make sense for the 2nd to foreclose but it is Citi Mortgage and I guess they do some silly things.

Does anyone have any input. We are going to stop paying our 1st next month but we need at least 3 months to save up in order to move.

Any advice?

[Coldplay]

So we stop paying our 2nd and I just received a certified letter notice from them. I can not pick it up until later this week but I am afraid it is a foreclosure notice....ugh.

We are ch7 discharged as of 01/06/09. Here are our stats:
Est Value - $198K
1st - $192K
2nd - $63k

It wouldn't make sense for the 2nd to foreclose but it is Citi Mortgage and I guess they do some silly things.

Does anyone have any input. We are going to stop paying our 1st next month but we need at least 3 months to save up in order to move.

Any advice?

When did you stop paying the 2nd ? It might be an intention to accelerate letter. We've gotten those via certified mail. No notice of default yet. Last payment made Sept 2009. Hope this helps.

[BCA2009]

Who knows what they will really do. Obviously they will do what they think is in their best interest. You would think that financialy there is no benefit in them foreclosing, unless they have a internal rule and don't want to set precedents by not foreclosing.

I think they are actually just trying to get you to pay something and in the end they won't foreclose unless they can get some cash out of the deal.

Either way, I imagine that you will easily have three months or longer.

Good Luck!

[mickeyme]

***UPDATE***
Last payment to 2nd was made in Nov 09'.
Current Value is $193K not $198k

Well the post office can not locate the certified letter. There is a chance that it is lost. I am not sure if I should call Citi Mortgage to see what it was about or just wait it out? What I am afraid of is finding out that they are going to put our place up for auction and not having enough notice to save first & last months rent and moving expensive. As it was we could not afford the 2nd so we have not been able to save very much.

UGH...what to do. We are going to stop paying our 1st either this month or next and it is with GMAC so I know they will move fast. I just need to buy myself 3-months of NO mortgage to save up...but I am afraid I may have lost my chance.

Does anyone have experience dealing with Citi Mortgage? How about with GMAC? I think I have the two banks that move the fastest...should have gone with BoA.

[srjth]

mickey, I'm not an attorney but I have been through this (with Wells Fargo). My unprofessional advice? Play the game - stall, stall, stall. Apply for a modification. Doing so postpones the foreclosure sale date. It's best to call them and talk to them to find out what's going on and especially when your sale date is. Just don't let them intimidate you. When/if they deny you for a modification or if they give you an offer asking you to start making trial payments, decline the offer and then reapply for another modification again, starting the process all over again. Do this with both loans. The process can take weeks to 2-3 months, depending on the bank. I think you can squeeze three months + out of it. I have been in foreclosure status with both my 1st and 2nd for almost a year. You have to beat them at their game.

Check out this forum to read what other people have done and get some support.

Personally, I think the 2nd is just bluffing. The 1st mort. always must be paid first, even in a foreclosure.

[mickeyme]

Thanks SRJTH...your info really helps. I am just torn if I should give CITI a call or just wait for the Sheriff to post a notice. I just hate this.

[srjth]

mickey the first call is the hardest. It can be intimidating. I remember feeling that, but you get used to speaking with them. They are used to speaking to thousands of people per week who are in foreclosure or facing foreclosure. They won't make you agree to anything over the phone or change your sale date to sometime sooner if you speak with them. It really is best to find out for sure when your sale date is. It's easy.

[mickeyme]

OK so I called Citi and they said I am 107 days late and at 120 they will give the case to a lawyer who will then file a NOS and contact me. While on the phone I started a new loan modification but right at the end of the application the phone call was disconnected. We will see what happens with that.
I spoke to a broker friend and she thinks that once the bank reviews the file and sees that there will barley be enough money to pay off the first they will back down. I really hope so. Like I said I need three months!!!
For the most part I want to think I will get my three months and maybe even more but from what I read looks like GMAC(1st lienholder) & CITI (2nd Lienholder) move fast.