If a notice of default has been filed on your home, or if you have been struggling to make your payments and you expect one is coming, don’t throw away your equity by simply allowing the bank to foreclose on your home. There is still time to sell your house, pay off the debt and walk away with the extra money. If there isn’t any equity, there are still work out options with your bank that will allow you some time and the ability to control the process.
FIRST… File for mediation!!! If you have been sent a notice of default and your house is owner occupied, you can file for mediation (within 30 days) DO IT!! Being accepted into mediation stops the process and forces decision makers from your bank to meet with you to hammer out some kind of a work out plan. That plan may be to sell, to short sell, to get a loan modification, to forgive the past due fees; there are lots of options.
SECOND… demand documentation. Even if you don’t live in the house and can’t go through mediation, look for things that will throw a wrench in the process and will help you gain an advantage. I would write to the servicer and request a copy of the servicing file to include a blue ink copy of the note and deed of trust, all assignments of transfer and a complete payment history. At the same time, I would make the same request to the Consumer Financial Protection Bureau by clicking here: CFPB ; banks just love that 🙂 In the complaint remarks, I would note it isn’t a complaint, just a request for information.
THIRD: Review what you get. Do you have anything, an old statement, your original documentation, anything that shows a discrepancy in what they provided? Use that to your advantage. If you find severe discrepancies, such as the payment history doesn’t match, the end of the year interest on one of your statements doesn’t compute to what is shown in the payment history provided, start filing complaints. File complaints for mortgage fraud with the following entities:
I am always going to recommend legal advice when dealing with any matters such as these, but if you can’t afford it or choose to represent yourself, this is a way to gather documents on your own.
If you can’t find discrepancies or reach a resolution with your bank, sell your house, so you don’t lose your equity. We will work with your bank for more time or resolutions.
Christy Klingler. Realtor
