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    BoogerMc's Avatar
    BoogerMc Posts: 14, Reputation: 1
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    #1

    Sep 14, 2010, 08:56 PM
    Refusal to accept mortgage payment, does it void the mortgage?
    I'm in a bit of a pickle. I live in Ohio and have a mortgage on a home that I inherited. About two years ago I learned I would be losing my job, I contacted the mortgage bank and explained my situation in an attempt to get the mortgage adjusted to something I could afford to maintian. I was told I did not qualify.

    I lost my job a year ago and I am now in foreclosure, papers were served a few weeks ago. Again, I have tried to get help from the bank and was told they could not help me. I have tried on several occasions over the past few months to make a "good faith" payment, one that is less than the agreed on amount, but a payment none the less and have had them refused on the grounds that they were not full payments.

    I have been told that refusal to accept a payment by a creditor will void the contract the money is due on. Is this true and what law or code is this related to. I must submit my answer by the 24th of September, but would prefer it be sooner so as not to miss my deadline.

    Any help is appreciated.
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #2

    Sep 14, 2010, 09:12 PM
    Quote Originally Posted by BoogerMc View Post
    ... I have been told that refusal to accept a payment by a creditor will void the contract the money is due on. ....
    Whoever told you that didn't know what he or she was talking about.

    Think about it: Threat of foreclosure is the main remedy mortgagees have to keep their mortgages current So if someone owed $1 trillion per month and the debtor paid $1.01, he could effectively forestall foreclosure? The economy wouldn't work, would it?
    (Not to suggest it's working now, anyway, but that's another issue. :( )
    BoogerMc's Avatar
    BoogerMc Posts: 14, Reputation: 1
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    #3

    Sep 15, 2010, 10:21 AM

    So basically it is better for the bank to be stuck with a house they can't sell than to work with the owner and accept what they can afford until such time that their situation changes.

    In other words greed is their motivationg factor. I will be out of a home, unable to provide a permanent address to any potential future employers and they will not hire someone with out a permanent address; therefore, once again the banks have driven yet another nail into the coffin of our economy.

    So what is the point of trying?
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #4

    Sep 15, 2010, 01:01 PM
    Quote Originally Posted by BoogerMc View Post
    So basically it is better for the bank to be stuck with a house they can't sell than to work with the owner and accept what they can afford until such time that their situation changes.
    That's up to them. The law doesn't tell people how to be reasonable.
    BoogerMc's Avatar
    BoogerMc Posts: 14, Reputation: 1
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    #5

    Sep 15, 2010, 03:44 PM

    Nor does it tell people how to be intelligent, which is why we have so many criminals behind bars.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,292, Reputation: 7691
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    #6

    Sep 15, 2010, 06:05 PM

    The banks, may, depending on the value of the home and the amount of mortgage decide owning the home may be in their interest.

    Others will threaten foreclosure for months and months, and not do it, tying to get you to pay by their terms.

    But it merely depends on the banks, esp now that the government has bailed the out with tax money. As to what they will or won't accept. Some may take the deed instead of foreclosure, others will foreclose, sell and then sue you for the balance left, ( depends on terms of your mortage)

    have you tried to sell it yet, even trying a short sale ?
    BoogerMc's Avatar
    BoogerMc Posts: 14, Reputation: 1
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    #7

    Sep 16, 2010, 08:19 PM

    Don't want to sel, don't want to lose it either. Have tried to work with the bank but they just will not cooperate. I have offered to make smaller payments just to keep the account open and they refuse to accept them if they are not full payments. I tried to modify the mortgage before I lost my job to reduce my payments, they refused to work with me then as well. The house was valued at $101,000, but now it is worth about half as much or less. I owe $88,000, and do not want to welsh on the debt, I just cannot afford what they are asking at this time.

    To be honest, I am so frustrated that I am at my wits end.

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