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djcall · Feb 1, 2007, 03:36 PM

I hope someone can help. I live in NJ. I took out a home equity of about 1/5 of my house value. Unforturnately I went with what I now believe was a predetory loan company. They convinced us to go with them and promised a low rate. I even got it in writing. Than right before we were to close they changed the rate to twice what it originally was. Because we had alrready promised the money out we had to take the new rate. The payments were now very high. I got behind on some payments. I wrote and told them I would pay each week until I caught up. I sent them two supstantial checks (each equaling one months payment, within 2 weeks) and they sent them back saying they want the whole amount or nothing. Is this legal. They say they are starting foreclosure, but they are a second mortgage and I do not owe anywhere near what my house is worth. Can they refuse the payments, and can they foreclose? Please give me some answers. Thank you

RubyPitbull · Feb 2, 2007, 11:43 AM

Unfortunately, the best way to handle this is to contact a real estate attorney, immediately. He needs to review the paperwork you signed for this loan. You may very well indeed have set yourself up to lose your house to these sharks. At the very worst, the lawyer will need to file paperwork to stop the foreclosure from happening. At the best, he might be able to extricate you from this mess. Please ask your friends and neighbors if they know a good real estate attorney and make an appointment. Usually, the initial consultation is free.

maebarr · Feb 12, 2007, 05:04 PM

Originally Posted by djcall

I hope someone can help. i live in NJ. I took out a home equity of about 1/5 of my house value. unforturnately i went with what i now beleive was a predetory loan company. they convinced us to go with them and promised a low rate. i even got it in writing. than right before we were to close they changed the rate to twice what it originally was. because we had alrready promised the money out we had to take the new rate. the payments were now very high. i got behind on some payments. i wrote and told them i would pay each week until i caught up. i sent them two supstantial checks (each equaling one months payment, within 2 weeks) and they sent them back saying they want the whole amount or nothing. Is this legal. they say they are starting foreclosure, but they are a second mortgage and i do not owe anywhere near what my house is worth. can they refuse the payments, and can they foreclose? please give me some answers. thank you

I would contact the attornery general's office in your state. Some finance company do this because the want to foreclose on you. Also, most mortgage companies will lock in the interest rate and it stays the same until you close. As far as them refusing the money, call a lawyer that deals with mortgage law, in some state if money is refused for a debt, it is automatically paid. Good Luck

Home Retention Agency · Mar 22, 2007, 09:20 AM

This is all well and good, but most real estate attorneys are not equipped to handle this kind of case.

And by the time the AG gets anything accomplished, the class action lawsuit reaches conclusion, your house will be long gone.

And, like the suit against Ameriquest, you'll eventually get your check, and it will probably be for $500... which will make a really big impact on your situation, right?

The terms of your mortgage need to be renegotiated and you need a written workout agreement.

If in fact you do have a significant amount of equity in your property, this will make them less likely to cooperate, because they would likely make more if they take your house.

If you're still dealing with this and you need assistance in this matter, send me an e-mail. You can contact me at r.michon at homeretentionagency dot-com.

I've spelled it out to avoid being picked up by the harvesters.

This is serious business, and not something that you'll likely figure out on a forum.

Zeepie · Mar 28, 2007, 05:00 PM

Djc:

You left out some details. Was a Notice of Foreclosure posted or served on you? If not, make those payments! Send them Western Union if necessary, so you can PROVE and document your payment. A mortgage company cannot foreclose on your property (legally) after refuseing payments.

If a Notice of Default WAS served on you, you can write them a written notice of Dispute and show your attempts to pay. Get receipts for payment! Pay Quick Collect by Western Union.

You can also try to refinance with another more reliable company. They are not supposed to interfere in such circumstance. DOCUMENT everything. Keep records and don't throw anything away!

Also, get an attorney! ;) - Zeepie

starwarsgal · Mar 29, 2007, 02:12 PM

Oh my God!
This makes me so angry!
I have been in the business for years and have seen good and honest people get raped by these loan sharks. I am so sorry to hear about your situation. This is horrible.
Okay, first of all - it is legal. You signed loan documents and they were notarized and it is a promise to pay under their terms for which you agreed to.
But this is a second mortgage correct?
In the event of foreclosure, the FIRST mortgage is the one who gets paid.
It is very tricky to foreclose on a property for a small second.
You have options.
You must have options!
How about refinancing the first loan (if there is equity left in the house) and paying off the second?
Is your credit bad? I hope you are not late on the first.
Move fast. I don't know if this helps.
Please feel free to reach out and help. My husband and I are real estate brokers and we do refinances, we believe in educating borrowers. Proceed with caution if you chose to deal with another mortgage company.
Good luck.

Dr D · Mar 29, 2007, 02:46 PM

You have a bad situation. Many Vampire mortgage lenders engage in bait and switch tactics (especially at the last minute). You signed the loan papers, and waited the mandatory 3 day rescission period during which you could have changed your mind. The bottom line is that you agreed to their terms. Once you are delinquent for a certain period, the lender is not required to accept partial payment of the arrears, without jeopardizing their legal rights. Your second mortgage is probably secured by a Deed of Trust. Once the Notice of Trustee Sale is recorded and sent to you, the sale will take place in probably 90+ days after the notice. You can reinstate the mortgage at any time prior to the sale by paying all of the back payments plus attorney fees and trustee fees, which can add perhaps another $2000 to the amount due. I think that your only recourse is to somehow find the money to cure the default. If you can do this before the Notice of Trustee Sale, you will save money. Any attempt to secure a new second mortgage to pay off one that is in default will probably fail, or get you something worse than what you already have. I wish you nothing but the best.

Dr D · Mar 29, 2007, 02:59 PM

Another point. Once the foreclosure process has been started, the only ways that I know of to stop it is by paying all the mony due; by filing Bankruptcy; or having the lender stop it. I have seen lenders postpone the sale if a legitimate purchase contact for the sale of the property is in place, and a little more time is needed to close on it. The lender is under no obligation to do this.

kansas222 · Apr 6, 2007, 01:16 PM

My aunt 75 years old went through a similar situation, several weeks ago. If you have friends, relatives, retirement funds, savings, or co-workers to help you out,