I recently switched jobs and have only started getting caught back up on bills as I only get paid a decent sum once a month and my girlfriend of four years and I parted ways so I am also now back to being the sole bill payer for myself, my house and my two sons that I have primary custody of.
I now find myself three mortgage payments behind. The company, and I use this term loosely, that bought my loan from BOA (without my knowledge) is called Selene Finance, and they are awful, and their online reputation is deserved.
So I don’t have all the money to get caught up, but I have enough to pay May’s payment ($1100) but they won’t take it. They won’t accept it! I’ve spoken to several people there and they are saying that now because I owe them $3300 that I would have to at least make two payments in order for them to accept it. I have never heard of such BS before from any bank, bill collector, etc.
So my thought now is to send them a check or money order in a certified letter to “force” them to accept the payment, but this route also has me concerned. What if they don’t post it, or worse, apply it to my current payment (July) and allow the past due payments to accrue charges of some kind?
I’ve been in my house for ten years and I have never been this strapped or been this behind on my mortgage before and I am frightened about the prospect of losing my home to these turkeys. They constantly remind me that they are a bill collector (not a bank) and ask me repeatedly if I still occupy the property. They also call me every day, often two or three times a day.
The phone calls I can deal with but losing this place that is my son’s home (because they can’t live with their mother) is unthinkable to me, and I am running out of time.
Please help with advice, facts about foreclosure and how to avoid it, etc. I’m extremely concerned and I don’t know where to turn. Thanks in advance guys, I know some kind of truth will spring from the ether.
I agree with Me_Billy … lay your hands on another $1,100 and pay the $2,200 … and that buys you a month to come up with another $2,200 … start selling stuff if you have to … make them boys get paper routes or something.
If you cannot informally negotiate some kind of payment catch-up plan with them, then you need someone to read your mortgage documents and tell you what your options are. Ideally, that person would also know the mortgage laws in your state (which can trump the mortgage documents).
Your local legal aid (513) 241-9400 might be able to help, or if not, give you a referral.
Other notes:
(1) You should try to figure out the exact role of the different entities. Is Selene Finance your new mortgage servicer, or did they buy the note? Those are different things. If they are just your new servicer, then BOA is still your creditor and ultimately the one that would initiate foreclosure proceedings–though you may still have to negotiate with Selene Finance.
(2) If the people calling really are debt collectors (and not the actual creditor for your loan), they are not allowed to violate the provisions of the FDCPA in harassing you to pay. That includes “Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.” Consider keeping a log of how often they call or printing out phone bills or anything else that would log it. That may be useful if you end up finding an attorney.
(3) Generally, you are entitled to a period to cure your default before they can initiate foreclosure proceedings (and sometimes after). In many places, that is 120 days. While you look for legal help, do what you can to scrounge money. If you have family or friends that might make you a loan, this might be the time to ask for that.
Disclaimer: I am not your attorney. I am not barred in Ohio. I don’t even do foreclosure law. I might as well be a dog randomly typing keys as far as you’re concerned. This is not legal advice. Seriously. It would be a terrible idea to give or take legal advice on a message board. Please contact legal aid in Cincinnati for assistance. Like, why would you not do that? Are you doing it now? Good.
Even if a nonprofit can’t handle your case, they may be able to refer you to other sources of assistance, or at the very least, let you know what your options are.
I’m still in a tizzy because they won’t accept my $1100 payment that I have on hand RIGHT NOW. Is there a logical explanation for that or are they just trying to strongarm me?
You might try going to another lender and getting a Home Equity Line Of Credit. If you’ve been in your house for 10 years you should have some equity to draw against. You’ll get a really shitty interest rate due to your poor credit but at least you’ll be on a fixed payment plan for your back debt and as long as you make those payments then no one will take your house.
According to this article and many others, “the terms of most mortgage loans allow lenders to decline payments from borrowers who fall behind on their mortgage payments.”
Have you checked your loan documents to see if this is the case? It sounds like the legal aid attorneys others have recommended are your best option.
I was thinking something similar. My thought was to go to the original bank and seeing if he could refi the loan. However, I see a few potential problems with that. Without his ex-GF’s income, he might not (as far as the bank is concerned) be able to afford the loan and they might not approve him on that. They might not approve him just based on his current loan being past due. And of course, it cost money up front to refi a loan.
Of course, a HELOC might be able to solve some of these. If he could get a HELOC for, say, 5 or 10K, even with a terrible rate, he could draw off just enough to get the mortgage back into good standing and then go from there. Either leave everything as is and continue paying as he has been or refi from there, possibly with a better rate or at least with a lower payment just to take some pressure off since it’ll be a new 30 year note. If he does that, he would then also have to decide if he wants to hold on to the HELOC just in case or roll what he took out of it into the new loan and get rid of it. The bank may also not give him a choice in that matter.
OP, you’re hardly the first person to fall a few months behind on your mortgage. You might want to go to an actual branch and speak to a mortgage banker. They might be able to help you out. Sometimes they have some tricks up their sleeves. Things are tighter now than they used to be in the mortgage industry, but you never know. It might be worth talking to someone. If they can get things rolling quickly enough on a refi you might be in good shape. I know at my bank certain types of HELOCs (the ones with higher rates) get done in one day all by the bankers. No huge approval process, no appraisal. Quick and easy.
What does the rest of your credit look like? If everything else is good, you might even be better off going to a different bank entirely and seeing about getting them to buy your mortgage and possibly a quciky HELOC.
I really think you need legal advice from someone licensed in your state. I bet if you call them, they can tell you the name of a legal aid organization that serves your county.
ETA: the second link is to an organization that indicates they serve people throughout Indiana. I bet there are others, too.
Stop wasting energy on the “They won’t take my $ 1100!!” issue. It is what it is and is not likely to change. Any future minute you spend on bemoaning this is self defeating.
You need to scramble to get that extra $1100 ASAP. Is there a relative you can get a short term loan from? Cash advance on a credit card? Stuff you can dump on eBay? Rent out a room to a student - 1 months rent and a sec deposit would be about that amount. Someone who owes you a big favor? You need to focus on cash collection right this second.
First of all, some background - Selene is not a bank, it’s a finance company specializing in “distressed” mortgages. The mortgage originator, in this case BofA, sold your mortgage to Selene in order to get it off their books. BofA, as a rule, only carries “prime” mortgages and sells any that have a history of late payments. As far as I can tell, Selene has no branch offices, so a face-to-face meeting is not possible.
Then call them and see who CAN help you.
Highly unlikely. It will probably either be returned to you or destroyed. As stated above, mortgage lenders have legal and contractual reasons to not accept anything less than a full payment once the borrower is in arrears.
-Call any of the numbers provided here and seek legal advice
-Research the government sponsored Home Affordable Modification Program (HAMP) and approach Selene about a loan modification.
-Contact friends and family to borrow enough money to make whatever payment Selene will accept now in order to buy time. Even if you are successful at this, continue pursuing HAMP.
I was in the same position around 2000 and came within 30 days of seeing my home sold on the courthouse steps. You can get through this successfully, but time is now your enemy. You must start all of the above NOW!