Ask Me Help Desk - Need advice on mortgage.

Hello everyone. I need some advice on a legal matter. This is taking place in Kentucky.

My fiancé was recently behind on her mortgage payment. She only owes around $2000 on her mortgage. I have given her the money to catch up, but it has already been turned over to the lawyers.

The lawyers want the money she owes, and an additional $2000 dollars in legal fees. They won't negotiate a payment plan for the legal fees.

The morage company told us they would see if she qualifies for some sort of hardship plan, but we have the money she owes.

My quesstion is if we go straight to the mortgage company and get her caught up do we still have to pay the legal fees? Also do the lawyers have the power to take her house even if she gets caught up, and we refuse to pay the leagl fees?

Also she is still legaly married, but the divorce papers are in the mail. Not sure if you guys need that info.

Any advice will help, she's really worried. Thanks in advance for your time.

Hello,

You have to remember that the legal firm works for the mortgage company, they are not like some independent people that are not involved.

The mortgage normally allows if a person gets behind for it to be turned over to a legal department ( or an attorney) to begin collection or to start foreclosure.

Once the legal department starts work on it, you will owe legal fees. That is also in the mortgage that you agree to pay the legal fees if it goes into collections or into foreclosure.

At this point they may agree to take the 2000 and to allow payments on the balance in addition to the regular mortgage payments but they do not have to.

Now could they write off the legal fee's and accept the 2000, yes, if you find a nice manager to talk to at the lender, but do they have to, nope,

And actually if it continues into foreclosure there will be even more additional fees added including court fees.

And yes she really needs to be worried, since once she is in default, they have the legal rights to do what they are doing, and unless she can pay all of the fees, it can continue into foreclosure and they can take and sell the house.

** not wanting to sound off, but she needed to get someone to help with a payment when she got one payment behind, not wait till it got really late.

Thanks, and I agree that she needed to get help a long time ago.

I'm not sure about this, cause I just found out today, I'm hoping that we can work it out with the morage company. It sounds like they are willing to work things out. If not, can we take it to court?

Quote:

Originally Posted by singthesorrow925

Thanks, and I agree that she needed to get help a long time ago.

I'm not sure about this, cause I just found out today, I'm hoping that we can work it out with the morage company. It sounds like they are willing to work things out. If not, can we take it to court?

What for, following the mortgage contract?

I would say she needs to get the mortgage contract out and see, I will bet everything that is happening is in the contract. If it is not in the contract then you may have grounds.

But a note you don't have to worry about taking them to court, if this is not settled very soon, they will have her in court on a foreclosure.

But yes really the mortgage company does not really want the house, they want their money. And most of the attorneys are actually emploees of the mortgage lender, so they have a lot of room to work.

She needs to TALK to them, not talking to them is most likely what got her into this trouble. Since they will tell you exactly what is going to happen if you don't do this and that.

Right, that's what I told her to do. I'm willing to pay for the fees for her. I just want to make sure I have to first.

What I'm hoping is we can pay what she owes on the house, and pay off the legal fees. As I said the lawyers are pretty firm on not negotiating, but the mortgage company seems a little more workable, I'm sorry for all the questions, I just want to get as much info as I can.

I would go right to the mortgage company. They typically allow you to catch up with no problems. If it's already in the foreclosure process, just call the loss mitigation dept and let them know you want to catch her up and they'll accept payment immediately.

My husband and I have had problems and I filed bankruptcy and it closed 6 months ago. I had my name taken off the house cause I was the co-signer. I'm the one who pays the mortgage and I have been late the last couple of months, not behind just late. He does not know and when I got my bill last month it said I would incur default charges. I have been wanting to leave and he is now filing bankruptcy also and is possibly going to put the house on it. My question is, is the house going to go into foreclosure anyway regardless if he puts it on there?
Will a foreclosure show on my credit report if I had my name taken off it?

Sorry I was going to add I live in Ohio and my mortgage is through bank of America.