Can a Mortgage Company Stop Taking Your Monthly Payments and Say That You Were Behind Then Throw You Into Foreclosure?
(St Louis, MO)
Can a mortgage company stop taking your monthly payments and say that you were behind when you weren't, throw you into foreclosure and let your payments build up? What to do when you had life insurance on your home and the company didn't carry it over to the next owner and now that your spouse has passed you are still stuck with payments and or going into foreclosure?Mortgage Loan Modification Answer:
That just sounds completely wrong! Your bank should not be able to get away with what you are saying they are doing to you. I would strongly recommend that you consult with a qualified and experienced attorney to help you with your legal rights as a borrower.Additional Answer:
Who is the loan Serivcer?
What State are you in?
How much does the Loan Servicer Say you are behind?
How many payments has the loan servicer refused?
Have you received a default letter and it should say how much is in arrears?
Have you received a foreclosure notice?
Are you taking the refused payments and placing them in a seperate escrow account (savings account) titled with your name-Mortgage Escrow Account?
Explain what you mean when you say you had life insurance on the home and it was not carried over to the next owner?
Generally a Loan Servicer can and does refuse payments when they deem
you behind on your mortgage. They will not accept partial payments. This is because a payment re-starts the time period in which they have to foreclose. (I view this as wrong and something that needs to be changed in our laws) You can contact the Federal Reserve District office for you State and file a consumer complaint. They are very good about following up and telling you who regulates your Loan Servicer. If I knew who it was I would be able to tell you more. Do a search for Dean on this site and a list of links will be in one of my posts.
Taking the refused payments and placing them in an escrow account Titled with your name - Mortgage Escrow Account is a good way to show the court your attempt/intent to make the mortgage payments. You might ask an attorney about this process.
As to life insurance. I am going to assume you are talking about credit life insurance on the mortgage. Life insurance is on the individual or individuals that own the home, not the home and policies vary. When you finance a home that is an option on the financing paperwork. It does not automatically carry over if you refinance.
If you post additional information, I will respond.
In the mean time Grace's suggestion is a good approach to follow.