Legal Question in Credit and Debt Law in Wisconsin
Very Very discouraged. Home mortgage problems
I have been having problems with our mortgage company for about 2 years. They don't know what other deptmartments are doing within their own organization. We thought we were caught up last year about this time and found that according to them that we were not. It generated a foreclosure letter. We have found that they have a significant amount of our money in unapplied and else where. Now this year we are getting the same late payment letters as we did last year. We are on a repayment plan and have been making those payment ahead of time. What can I do to avoid getting another foreclosure letter.
1 Answer from Attorneys
Mortgage Transfer Problems, Chapter 13, Suspence Accounts
Once a mortgage goes into default, it is common for banks to set up a "suspense account" where they hold payments recieved but do not apply them to the loan until you are fully "cured." However, once you are caught up, you they should apply the payments if they still wish to work with you. If not, you can sometimes force lenders to accept payments via a chapter 13 bankruptcy. If a bank is still working with a borrower, however, and has offered an installment agreement option to catch up, you are very lucky. A chapter 13 filing might then be premature. I do not know exactly what you mean when you say "foreclosure letter." You could be referring to a lawsuit or to a "right to cure" letter. You need to consult with an experienced bankruptcy attorney as soon as possible and show him or her these doucments. Theoretically, sale of your mortgage to another owner should have no effect on all this--your rights as well as theirs remain unchanged.
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