Stopping Foreclosure: What to Do When the Bank Refuses to Accept Your Mortgage Payments & Tries to Escalate the Home Foreclosure Process
If you’re trying to prevent foreclosure, one of the things you may encounter when you start getting behind is a mortgage payment you send in being sent BACK to you (yes, the bank giving you your money back). In essence, they start refusing to accept your mortgage payments — and seek to escalate the foreclosure process.
This is one of the reasons many homeowners get convinced that banks “want” their homes, which is not true. They want you to pay them back the money they lent you to get the house. “So,” you may be thinking, “why would they refuse to accept mortgage payments if they’re not trying to take my house from me?”
Following is why – and what to do about it.
Prevent Foreclosure: How to Get Banks to Start Accepting Your Mortgage Payments Again
When banks stop accepting your mortgage payments, it’s usually because you are severely behind. So you may start sending in partial payments – ie, doing the best you can to send them as much as you can. But, many will say that they don’t accept partial payments. They’ll tell you that the full amount you’re in arrears for (the full balance you’re late on), or they’re going to move ahead with foreclosing on your home.
So somehow, you beg, borrow and scrimp to come up with this amount. But, they STILL won’t accept it. Why? Because usually another month or so has passed and you owe additional monies for this time (ie, the full balance you owe has escalated). So, they send BACK the monies you sent in thinking that you’ve finally saved your home from foreclosure.
But, the foreclosure process proceeds.
At this point you are probably scared as heck and wondering what you’re gonna do. The first thing is not to panic. There’s still hope. Following are two solutions.
1. Work with the Bank: Now, banks are more amenable than ever to working with homeowners to prevent foreclosure because so many of them are simply walking away from their homes (eg, doing voluntary foreclosures).
Ask them for a payment plan – that you know you can afford to adhere to – to catch up the arrears. Be prepared to provide a lot of financial data, eg, recent pay stubs, other bills owed, total household income, savings and investment account info, etc.
They will almost always try to get you to pay more than you know that you can – so don’t agree to it. BUT, do stretch if you have to if they’re willing to work with you. Cancel cable, cut down on the number of cell phones, trade in an expensive car for a used one. In short, do everything in your power to meet your payment plan stipulations – if they put you on an arrears payment plan.
What these plans do is allow you to pay part of your arrears now, and the rest over time. Sometimes you’ll have months to pay off the rest; other times a lender will spread those payments out over the life of the loan.
So it’s worth asking – again and again – your bank to work with you to get this type of plan.
If, however, your bank refuses to work with you, you may need assistance.
2. Work with a “Prevent Foreclosure” Specialist: There are many nonprofit organizations out there. DON’T – whatever you do – go out and find one of these paid firms who guarantee that they can help you save your home. A lot of them are shysters. We’ve discussed it here on this blog.
Following are a few posts you can refer to to prevent being taken advantage of if you’re trying to prevent foreclosure.
How to Find Foreclosure Specialists to Help You Prevent Foreclosure
Foreclosure prevention specialists can help you do everything we just talked about above. But, they may be able to accomplish it quicker and easier than you doing it yourself. This is because they know how banks operate and what their “pain points,” for lack of a better term, is.
To get “scam-free” stop foreclosure help, visit HUD’s website and conduct a search for HUD-approved housing counseling agencies. You can also call. The number is 877-HUD-1515 (877-483-1515).
Good luck in stopping foreclosure.
Other Helpful Reading on Stopping Foreclosure
Prevent Foreclosure Warning: Don’t miss a payment if you are lucky enough to get an arrears payment plan. If you do, the lender can start the foreclosure process where it left off, and lenders are highly unwilling to work with homeowners again who haven’t stuck to a previous agreement.
Remember, when all else fails, you may still be able to prevent foreclosure by filing Chapter 13 bankruptcy.
P.S.: Start a business cleaning foreclosures — learn how one foreclosure cleaning business owner makes up to $40,000/wk.
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Copyright © 2010 Yuwanda Black for Foreclosure Business News. Article may not be reprinted or reproduced in any manner without the express, written consent of the author.