Notice of default and intent to foreclose from SLS

[helpme2010]

I can relate to all of you. I went through a bunch of threatening notices from my mortgage company, I missed several months of payments, then I was able to get a temporary loan modification for 6 months, which I followed. They then accepted my second 6 month round of loan modification, but jacked up the amount I had to pay by $500 a month. This is draining my final cash reserve. I have 2 bad reports on my credit (one from this lender showing foreclosure status and another from the same company, different division for my home equity loan which I stopped paying over 6 months ago). One of my credit card companies is refusing to extend another 6 months for a reduced payment plan, so I am now at the point of deciding whether to go bankrupt.

If I do, does anyone know how long I can stay in my house before getting evicted? I live in Southern California. I am in foreclosure status now, but have been making my monthly payments for my temporary loan modification (I haven't missed a payment yet under this loan modification program).

I am really scared how this will affect my job hunt (whether I go bankrupt or just showing a set of bad credit history items). I am worried this is going to make it really difficult for me to get a job either way. But I will be getting my 4 year degree in August (so I am hoping this helps open up jobs I haven't been able to get access to before).

Any feedback???

[tanmag]

tangmang, do you have a second with Aurora? Also, are you underwater on your first (assuming you do have a second with Aurora)?

Thanks

hey, onthebrink...no I don't have a 2nd and yes I'm 75-80 underwater...not a pretty picture. I have now received in the last 3 days 17 certified letters and 23 in my mailbox, 3 more taped to my front door today, plus 2 taking pictures and tons of realtors calling and mailing letters. This is not fun!

[onthebrink]

Hi, we missed our first payment with Aurora 2/10 We were denied for HAMP on Feb 22 and a notice of default letter was sent to us Feb 23 (the day after being denied) I kept checking with our county and nothing was showing as filed. Aurora told me those were just standard letters that are sent out and not to worry. March 29 I had a notice of default taped to my front door. Went to our county website again and the notice of default was posted with them as of 3/29. Now I have received certified mail every day this week :O( Dont know if any of this helps you or not.

tangmang, do you have a second with Aurora? Also, are you underwater on your first (assuming you do have a second with Aurora)?

Thanks

[tanmag]

Hi, we missed our first payment with Aurora 2/10 We were denied for HAMP on Feb 22 and a notice of default letter was sent to us Feb 23 (the day after being denied) I kept checking with our county and nothing was showing as filed. Aurora told me those were just standard letters that are sent out and not to worry. March 29 I had a notice of default taped to my front door. Went to our county website again and the notice of default was posted with them as of 3/29. Now I have received certified mail every day this week :O( Dont know if any of this helps you or not.

[Stilltheone]

We ALWAYS get notices of intent to accelerate from BOA and Aurora. Basically, they give you 30 days or so to catch up. If you don't, they MIGHT foreclose on you. Considering how long it takes to foreclose on a house these days, I'd say you're safe!

[onthebrink]

I am guessing they might have used Zillow, which shows our home as having $40K equity on the first. We had our home appraised last July and it came in between about what the the value is of the first mortgage to $40K above it. Prices have been fairly stable in our neighborhood but I think they have gone down some. I have contacted one of the brokers who gave us an appraisal last year to get his opinion on whether or not the appraisal he gave then holds true now.

[onthebrink]

Thank you again and same to you!

[shark66]

Well, had they made an attempt of any legal action in my case I'm fairly certain that I would've heard of it by now...LOL...

I can't guarantee any wisdom behind my words, but here's how I look at it: would you - or anyone in their (semi) right mind - pay $250K for the first mortgage in attempt to get the theoretical $70K out of the second one (which they paid $5K or less for, but that's beside the initial point) without the slightest chance of ever breaking even at $255K + legal fees, let alone making a profit?

My opinion is that they're looking to settle and make a reasonably quick buck in most cases. But, once again, I'm no expert on the subject matter, otherwise I wouldn't be where I am right now.

Best of luck to you and your family.

[onthebrink]

Thank you, shark66!

I just read the letter in more detail and it reads, "Failure to pay the total amount due... MAY result in acceleration of the entire balance... and commencement of of foreclosure of the Trust Deed/Mortgage, which is security for your Note."

We're underwater by at least $50K on our first.

They call every day. They called my wife's boss and the receptionist. Sounds like other than letters and calls, they didn't take any legal action in your case. I hope it's the same for us.

[shark66]

I can only share my experience with SLS...YMMV...

My second mortgage was originally with GMAC, that I strategically defaulted on when the real estate market (along with my non-related paycheck) started seriously going down the tubes. After offering me to buy back the mortgage at like 5% of the value (which I didn't do because of the tax implications of the whole deal) they sold it to SLS last year. At that point, no payments have been made for well over a year.

After the introduction letter, SLS waited a bit, then started calling the house every day, finally sending a letter saying that they're intending to foreclose sometime in August.

I'm underwater at least $5K-10 on my first mortage, so the second one is as good as non-existant in the market terms.

Haven't paid a red cent since to SLS, they keep on calling and sending statements, and I filed Ch. 13 on 04/01, with the intent of stripping the second mortgage altogether.

In my case, the barking dog didn't bite. If you're seriously underwater it's unlikely to bite you either in my opinion.

Good luck.

[onthebrink]

We have a HELOC with SLS and a 1st with Chase. Our home is way underwater. When I got home today there was a "Notice of Default and Intent to Foreclose" letter from SLS.

We are working on trying to get a loan modification on the first. I spoke with the main person at the firm that is handling the loan modification and he said that this notice was merely a scare tactic on the part of SLS. He said: a) it was not an official notice because it didn't come from the county and b) because the house is so underwater, even if we did foreclose SLS would not make a dime.

He asked me to send him a copy of the letter. I also sent a copy to the attorney we hired today to handle debt settlement to get his opinion.

The letter says that "the above referenced loan is now in default as a result of your failure to pay the 2/15/10 payment and the payments due each month thereafter." The letter is dated April 6. Missed not even two months and a notice of default? I haven't read about anything like this happening to others.

Has anyone had a similar experience?

BTW, they left a note on our door yesterday stating that an inspector had stopped by.