Mortgage banks are basically run by a boneheaded lot. I have found that out by observing this past national home foreclosure crisis that has taken place since The Great Recession. Oh, the mortgage banks hire intelligent and qualified people and all, it is just their policies concerning foreclosure I sometime find to be very boneheaded and confusing.
For instance, why wouldn’t a mortgage bank, right away, begin to acknowledge a financial problem with their customer when the customer phones them telling about one? Bankruptcy sites are replete with personal bankruptcy stories where some mortgage company was near impossible to deal with when it came to the bank’s ability to understand the financial plight of their customer. The reporting attitude of the mortgage banks has been that they refused to compromise, understand, or even hear that their customer was having financial problems in meeting the demands of the mortgage contract.
Even after the customer has filed for bankruptcy protection, there are still too many stories of banks not taking home modification seriously, even those modification programs guaranteed by the U.S. Government.
The foreclosure process, especially in the current national foreclosure crisis, has been very costly to the mortgage banks. Not only do they have the cost of foreclosing, they are taking a beating on the sale of the foreclosed homes. Most are keeping the foreclosed homes off the market for better times, but is that really wise?
A home in foreclosure is just sitting out of the market, but it still has insurance, taxes, and upkeep expenses that can keep a constant drain on the value of the home. These expenses make it even harder to understand why mortgage banks will not face up to the reality they need to cut their losses and move on.
Homeowners who have filed for bankruptcy protection understand the costs associated with a home not being foreclosed on. Homeowner association fees can also become an albatross around a homeowners neck when added to insurance and tax issues. So, how does a homeowner who is facing a house foreclosure speed up the process when home modification possibilities cease?
Here are some ways you can legally try to force the mortgage bank to foreclose on your home:
Cease payments on the property. Mortgage companies have no reason to listen to you or negotiate modification with you until they are sure you cannot make payments on your mortgage contract.
Live rent free in the home until the Sheriff moves you out. For the time it takes in most states to foreclose, you can save enough money to make your moving expenses and get into a rental. You own the home until the sheriff sends you the eviction notice.
Try once, and if the bank will not timely modify your contract, move on. Don’t get involved in the games banks play to get new information from you. It is time consuming. Most banks have all the information they need for a modification. If your first try and modification fails, it might be wise to move on.
Cut your expenses on the home. Once you have defaulted and sure you will give up the home, maintain it so you live in a nice place, but don’t provide payments on unnecessary expenses you are not required to provide. Those would include any insurance on property other than liability and content, property taxes, and homeowner association fees up until the time you file for bankruptcy protection. Once you file, all new homeowner association fees must be paid until the deed is transferred out of your name.
Mortgage banks are not going to cooperate with you as long as they think you might have the ability to pay their original mortgage agreement. Filing for bankruptcy protection and defaulting on the mortgage loans are two ways to convince the mortgage company they need to foreclose.
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