What does this letter mean?

[technoreid1]

Just curious as we got a letter from our mortgage company last month stating "if we do not pay what's due by Nov 16th - mortgage company will, without further demand , accelerate the maturity date of the account and declare the total balance immediately due and payable. As a consequence mortgage company may refer your account to an attorney for foreclosure and all fees associated with foreclosure and propert preservation.....and so on...."

We got 2 letters - 1st letter says pay by 11/16/2007 (which is the 2nd mortgage)
2nd letter says pay by 11/19/2007 (which is our 1st mortgage) SAME COMPANY for 1st and 2nd.

WE ARE BEHIND ON BOTH MORTGAGES.

What does this really mean? Could they file the notice of default on Nov 16th or do they usually wait even longer?

Any tips to stall them off a bit? (i.e., short sale)

thanks, techno

[HHM]

If they are invoking their acceleration clause, you have long since past "stalling".

Invoking acceleration is the first step down the foreclosure path.

[technoreid1]

So do you think they will file the notice of default soon?

thanks, techno

If they are invoking their acceleration clause, you have long since past "stalling".

Invoking acceleration is the first step down the foreclosure path.

[demismom]

I think they will, ours took about 20 days after that date to file our notice.

[SinkingFast]

We got our Notice of Default and Acceleration middle to end of February. The Foreclosure didn't actually start until first of May.

We scambled to buy ourselves some extra time by trying to offer a Deed in Lieu of Foreclosure. That process alone can buy you a month or so of time.

The Lender you send your payments to is generally a Mortgage Servicer. The Investor backing your note has to agree to accept the DIL. When you offer a DIL, the Mortgage Servicer packages up your offer and sends it off to the Investor for consideration.

If you don't do any maneuvering to slow down the process,........ The NoDA usually gives you about 30 days. Then the Lender has to transfer your acct to their Foreclosure Dept where a Foreclosure Technician is assigned to your Case.

The Foreclosure Technician then contracts the Foreclosure Trustee or Referee Law firm. Some State call it Trustee. Some States call it Referee. The Foreclosure Trustee/Referee then begins the actual Foreclosure process.

[HHM]

What is your "real" goal?

Could your realistically save the house, or are you just trying to buy time to live in the house as long as possible rent free. (My guess is the later)

If your goal is to simply stay in the house as long as possible, offering a DIL is risky because what happens if the bank actually accepts the DIL...then you have get out ASAP.

I suppose there are some things you could do to delay...but if foreclosure is inevitable, then you would be using those tools in bad faith.

[technoreid1]

You said that the "The NoDA usually gives you about 30 days."

Do you mean 30 days from the time you receive it or another 30 days after it expires.....

I guess what I am trying to say is that our NODA letter expires on 11/16/2007 meaning they want all the arrears by this date....... Do you mean we might have 30 days or more after this date?

This whole process is kind of strange - everyday I expect the NOD - did you feel that way? Kind of like always looking over your shoulder for the NOD?

My BK lawyer said it would be best to file our BK RIGHT before we get the NOD - I am just trying to figure out when they will file the NOD and file our BK right before they file the NOD (if this is at all possible - seems very hard to gauge when the servicer when file the NOD)

What if I bring up a short sale as an option - would they still file the NOD? Just trying to get some time....

The deed in lieu sounds good but what if they accept it? Then we might have to be out right away like HHM says.


Thanks, techno

We got our Notice of Default and Acceleration middle to end of February. The Foreclosure didn't actually start until first of May.

We scambled to buy ourselves some extra time by trying to offer a Deed in Lieu of Foreclosure. That process alone can buy you a month or so of time.

The Lender you send your payments to is generally a Mortgage Servicer. The Investor backing your note has to agree to accept the DIL. When you offer a DIL, the Mortgage Servicer packages up your offer and sends it off to the Investor for consideration.

If you don't do any maneuvering to slow down the process,........ The NoDA usually gives you about 30 days. Then the Lender has to transfer your acct to their Foreclosure Dept where a Foreclosure Technician is assigned to your Case.

The Foreclosure Technician then contracts the Foreclosure Trustee or Referee Law firm. Some State call it Trustee. Some States call it Referee. The Foreclosure Trustee/Referee then begins the actual Foreclosure process.

[technoreid1]

Just trying to get some more time in the house - I am assuming this NODA letter really does not mean anything (just the servicers warning letter) because I checked with the county clerk recorders office and they have not filed a notice of default.

Thanks, techno

What is your "real" goal?

Could your realistically save the house, or are you just trying to by time to live in the house as long as possible rent free. (My guess is the later)

If your goal is to simply stay in the house as long as possible, offering a DIL is risky because what happens if the bank actually accepts the DIL...then you have get out ASAP.

I suppose there are some things you could do to delay...but if foreclosure is inevitable, then you would be using those tools in bad faith.

[HHM]

Honestly, it really does not matter when you get the NOD relative to when you file. You can file before or after the NOD and there is no benefit or detriment to you either way.

Usually the NOD will follow shortly after the expiration of the Acceleration notice. Also, keep in mind, foreclosure is a lengthy process. So even if you get the NOD, you likely have another 3-4 months (and possibly longer) before the house actually goes to auction.

[SinkingFast]

I guess I should clarify our situation.

We were not looking to keep the house. We'd already moved to another State and we were trying to sell the old house. We fell into default when we couldn't pay both rent and mortgage payments any longer.

At first, we tried to deal with our Lender. CountryWide.

We had a Contingent Offer pending on the house. We gave CW income and expenses info and a copy of the offer from our Buyer. Plus, our Buyer was pre qualified, so our Realtor got a letter from the Buyer's Lender stating that fact. That bought some time.

But then our Buyer's offer expired without them having sold their house. CW was prepared to move for Foreclosure. That's when we offered the DIL.

The actual application process for the DIL and waiting to hear "NO" from the investor bought us about another month of time. Then Foreclosure began.

We wound up getting a last minute offer that allowed us to sell on our own. But our attny said it didn't really matter if we sold or let the house go in Foreclosure. Since the Foreclosure and BK were gonna be so close together, time wise, it wouldn't make any difference on our Credit.

[technoreid1]

Sorry to hear about that.... Are you renting now?
And if you are renting, how did the whole process of losing your house go emotionally? Was it difficult? Also seems like you moved out of your home fairly quickly?

thanks, techno

I guess I should clarify our situation.

We were not looking to keep the house. We'd already moved to another State and we were trying to sell the old house. We fell into default when we couldn't pay both rent and mortgage payments any longer.

At first, we tried to deal with our Lender. CountryWide.

We had a Contingent Offer pending on the house. We gave CW income and expenses info and a copy of the offer from our Buyer. Plus, our Buyer was pre qualified, so our Realtor got a letter from the Buyer's Lender stating that fact. That bought some time.

But then our Buyer's offer expired without them having sold their house. CW was prepared to move for Foreclosure. That's when we offered the DIL.

The actual application process for the DIL and waiting to hear "NO" from the investor bought us about another month of time. Then Foreclosure began.

We wound up getting a last minute offer that allowed us to sell on our own. But our attny said it didn't really matter if we sold or let the house go in Foreclosure. Since the Foreclosure and BK were gonna be so close together, time wise, it wouldn't make any difference on our Credit.

[technoreid1]

I see what you are saying. Also want to thank you for all your help/advice...and opinions! : )

Will I know about the NOD for sure? Will it be "served" on me?

Also - our attorney said it would be best to file our BK before we get the NOD (had 2 attorneys say this????) or file right before the NOD expires (90 here in CA). He said filing right before would buy us some more time?? I am not really so sure because the mortgage company would have to lift the automatic stay anyway, right?

thanks, techno

Honestly, it really does not matter when you get the NOD relative to when you file. You can file before or after the NOD and there is no benefit or detriment to you either way.

Usually the NOD will follow shortly after the expiration of the Acceleration notice. Also, keep in mind, foreclosure is a lengthy process. So even if you get the NOD, you likely have another 3-4 months (and possibly longer) before the house actually goes to auction.

[SinkingFast]

If you file BK before Foreclosure, your Mortgage Lender will file a Motion to Lift Stay and continue on their merry way.

Actually the process of leaving our home was kinda slow and then fast.

Hubby lost his job in summer 2004. Our Son was a Senior in High School 04-05. Hubby didn't find a new job until late January, 2005. And it was outa State. Hubby had to move immediately. So we began paying rent for an apartment on top of our mortgage payments.

I stayed behind with the family to get our house ready to go on the market. And so our Son could graduate from High School.

No offers on the house. We didn't really know what to do. So the kids and I stayed at the house for the summer. We went house hunting over 4th of July weekend to find a place to land for the kids to start school in the fall. Girls in High School, Son in College. We rented a house and immediately, our monthly payments doubled.

I moved the family the first of August. Son and I went back to the house for a week to do the deep final clean. When there's no furniture, the place has to be spotless. Hubby got the girls registered for High School here.

The girls and I went back to the house once. In October, 2005, during Fall break from High School. While we were there, we picked herbs from the herb garden we'd started and gathered pears off the pear tree we'd planted. I cried the whole time. I had a deep, sad feeling then it was the last time I'd see the house. It was.

It's been very emotional. That was our family home. We moved there when the kids were little. That's where they grew up. All their childhood memories are there.

Moving the girls right before their Junior year in High School was tough for them. All the social circles had been set in Kindergarten. They were not welcomed into any groups. So, one daughter went Early College and did not attend her Senior year at High School. The other one graduated mid term and started College in January of what should have been her Senior year.

Son had such a fun filled Senior year. The last fling of youth as it should be. The girls were cheated of that joy.

As many here will tell you,........... Most often, it's harder on our kids than on us.

[technoreid1]

I could not even come close to understanding how difficult it has been for you. How long did you live in the house for?

We have owned our home only about 3 and a half years and it's pretty sad just waiting here for the notice of default. We
took this house and transformed it into our own. I spent 2 years FULL-TIME painting, sheetrock, texture, tile, laminate floors, ceiling fans, all new fixtures everywhere, 14 doors, new roof, plumbing, water heater, sinks, toilets, closets,you name it...... My wife picked out all the colors/fixtures/everything! She made our house a home.

I bet when we physically start to move it will be very hard -
(it's hard enough living here now just knowing we have to move and will lose our home) but in a way it will be a new beginning so we have to stay positive. We could be better off after we file our BK and just rent. Who knows?


techno

If you file BK before Foreclosure, your Mortgage Lender will file a Motion to Lift Stay and continue on their merry way.

Actually the process of leaving our home was kinda slow and then fast.

Hubby lost his job in summer 2004. Our Son was a Senior in High School 04-05. Hubby didn't find a new job until late January, 2005. And it was outa State. Hubby had to move immediately. So we began paying rent for an apartment on top of our mortgage payments.

I stayed behind with the family to get our house ready to go on the market. And so our Son could graduate from High School.

No offers on the house. We didn't really know what to do. So the kids and I stayed at the house for the summer. We went house hunting over 4th of July weekend to find a place to land for the kids to start school in the fall. Girls in High School, Son in College. We rented a house and immediately, our monthly payments doubled.

I moved the family the first of August. Son and I went back to the house for a week to do the deep final clean. When there's no furniture, the place has to be spotless. Hubby got the girls registered for High School here.

The girls and I went back to the house once. In October, 2005, during Fall break from High School. While we were there, we picked herbs from the herb garden we'd started and gathered pears off the pear tree we'd planted. I cried the whole time. I had a deep, sad feeling then it was the last time I'd see the house. It was.

It's been very emotional. That was our family home. We moved there when the kids were little. That's where they grew up. All their childhood memories are there.

Moving the girls right before their Junior year in High School was tough for them. All the social circles had been set in Kindergarten. They were not welcomed into any groups. So, one daughter went Early College and did not attend her Senior year at High School. The other one graduated mid term and started College in January of what should have been her Senior year.

Son had such a fun filled Senior year. The last fling of youth as it should be. The girls were cheated of that joy.

As many here will tell you,........... Most often, it's harder on our kids than on us.

[Westlane]

Im not clear on this motion to Lift the Stay. Thats an order that would have to be signed by a judge. Obviously, anyone who claims the house as their primary residence would have thier lawyer file an objection...and then there would be a hearing...and why would the creditors motion be granted? This is what BK is for...a stay while the court sorts everything out. I would think a lift of stay would only be granted in extenuating circumstances.

Am I wrong on this? What is the consensus on this here?