They think our 2nd Mortgage is a 1st and are foreclosing

[Maycat2008]

We are in a bad situation. We have a 2nd mortgage that the lender thinks is a 1st and is trying to foreclose on.

 

History: we have a first and a second (Home equity) mortgage on our home. It was purchased by my husband and his ex while they were together. The house and debt to it was awarded to the ex in the divorce. The ex never took my husband's name off the loans or title, although she was instructed to. My husband foolishly did not follow up.

Fast forward 3 years later after the divorce, and we are now together. We went to pick up the kids from the ex' house and noticed boxes in front. We called her and was informed that she decided she couldn't afford the house anymore, so had decided to give the house back to the bank. Realized that my husband's name had not been taken off the loans, and she was missing payments. My husband had never missed a single payment of anything to that point. We decided to try and save the house. With 2 weeks notice we came up with the payments and moved in few weeks later to save his credit.

 

Everything was fine until the 1st mortgage jumped, up and the second jumped up. The payment adjusted to double what the original amount was. It was a variable loan (something my husband wasn't aware of). We decided to get a loan mod with the help of an out-of-state lawyer who specializes with that. At this point we stop making payments so the loan companies take us seriously. A year and a half later we finally get a loan mod with the 1st loan. We then try to do a loan mod on the second (It was a $22,000 loan). We find out that the 2nd loan company (BofA), has been paying our insurance and property taxes. We instruct them to stop, yet they still continue to. They are convinced that it is a first mortgage, now they insist on collecting escrow. The recently sold the mortgage to Ocwen.

 

We have tried to explain to Ocwen that this is a 2nd mortgage, not a first. We have sent them a title report showing the first mortgage. We have sent them letters and made phone calls, nothing changes. They tell us, no it is a 1st. We tell them no, why would we have a 1st for only $22,000 for a $270,000 home? They say, oh yes, you are right, but then nothing happens. BofA kept on trying to foreclose on us. We told them we would like to make payments, but they say we have to pay something like $6,000 or so in back payments, because they are including escrow fees. We are already paying escrow fees with the first mortgage! We have contact the insurance company and the county tax assessor and instructed them not to take their payments. We still are getting nowhere. It is ridiculous that BofA and now Ocwen has not looked closely enough to notice this is a 2nd mortgage for only $22,000.

 

The 1st loan company (Chase) says that the 2nd can't really foreclose, but that is not stopping them from attempting foreclosure. We have also tried contacting our local congressman, which got BofA's presidents department involved, but then it got sold to Ocwen. Does anyone have a good strategy, or have had a similar situation?

 

 

By the way, I am so glad I found Creditboards! What a great resource. Thank you.

[Maycat2008]

I just wanted to add that I (instead of my husband) am now taking over all contact with the Ocwen. Even though I am a newbie here, I have been reading Psychdoc's courses and trying to get a strategy together.

 

I noticed someone posted a pdf from the CFPB. Do you think contacting them with our issue would be a good place to start?

 

My husband has been so frustrated dealing with these companies. He was so relieved when I told him about Creditboards.com and that we may get some answers here.

[chicagorich]

Do you have equity in the home sufficient to pay off the first mortgage if the home were sold.?

[Maycat2008]

Do you have equity in the home sufficient to pay off the first mortgage if the home were sold.?

Thank you for asking. Unfortunately, no. We are upside down in the home. Otherwise we would refinance.

[chicagorich]

 

Do you have equity in the home sufficient to pay off the first mortgage if the home were sold.?

Thank you for asking. Unfortunately, no. We are upside down in the home. Otherwise we would refinance.

Then unless the second mortgage holder wants to come up with cash out of their pocket to pay off the first mortgage at the foreclosure sale, they won't foreclose. I had a second mortgage as well with BOA and they threatened more than once to start foreclosure proceedings. They backed off each time as my condo was way under water. They would have gained nothing in a foreclosure auction, and in fact they would have lost even more money.

[Maycat2008]

Thank you, Chicagorich. That is what we tell them. The thing that we are afraid of is that the will start foreclosure, and the sheriff will come and forcibly remove us and dispose our belongings, and it won't be until AFTERWARDS that they realize their error.

 

This also causes my husband a lot of stress, not to mention seeing that our house is listed for foreclosure every few months in the paper for the amount of $22,000.

 

How did you end clearing the issue with BOA?

 

Also, does anyone have any ideas on how to get them to come to their senses and let us pay a normal payment, as well as stop them from paying the property taxes?

[Bitbit]

Screw Ocwem, contact his divorce attorney. Ex wife can be held financially liable for the payments, and credit problems she's caused.

 

If he did a quit-claim deed at the time of divorce, he could well be in a position of being on the loan, but not on the deed. You guys may be spending money to save a house he has no ownership of - and the ex could demand he move out any time.

[chicagorich]

Thank you, Chicagorich. That is what we tell them. The thing that we are afraid of is that the will start foreclosure, and the sheriff will come and forcibly remove us and dispose our belongings, and it won't be until AFTERWARDS that they realize their error.

 

This also causes my husband a lot of stress, not to mention seeing that our house is listed for foreclosure every few months in the paper for the amount of $22,000.

 

How did you end clearing the issue with BOA?

 

Also, does anyone have any ideas on how to get them to come to their senses and let us pay a normal payment, as well as stop them from paying the property taxes?

Sheriff doesn't come until after the foreclosure sale takes place, which won't happen if they are not the first mortgage holder. In my case, the holder of the first eventually foreclosed and BOA got nothing.

[Maycat2008]

Screw Ocwem, contact his divorce attorney. Ex wife can be held financially liable for the payments, and credit problems she's caused. If he did a quit-claim deed at the time of divorce, he could well be in a position of being on the loan, but not on the deed. You guys may be spending money to save a house he has no ownership of - and the ex could demand he move out any time.

Hi Bitbit, we are already in court with her over other things. She is a deadbeat, but at least she quitclaimed the house back to us before her bankruptcy (we were paying for it at that time). We are fighting her on the student loans she took out three months before filing for divorce. She quit paying the student loans as well. That is another can of worms.

[Maycat2008]

 

Thank you, Chicagorich. That is what we tell them. The thing that we are afraid of is that the will start foreclosure, and the sheriff will come and forcibly remove us and dispose our belongings, and it won't be until AFTERWARDS that they realize their error.

 

This also causes my husband a lot of stress, not to mention seeing that our house is listed for foreclosure every few months in the paper for the amount of $22,000.

 

How did you end clearing the issue with BOA?

 

Also, does anyone have any ideas on how to get them to come to their senses and let us pay a normal payment, as well as stop them from paying the property taxes?

Sheriff doesn't come until after the foreclosure sale takes place, which won't happen if they are not the first mortgage holder. In my case, the holder of the first eventually foreclosed and BOA got nothing.

Thanks for sharing that. My husband has been stressing about this. Sorry about your foreclosure.

[groze]

They can not trash your belongings. In most states What they do, is move it to the Sheriff department storage area. I think you have a year to pick it up before they sell at Sheriff's sale. After 30 days there-you might start incurring a storage fee. My concern is how they handle the belongings.

[Maycat2008]

They can not trash your belongings. In most states What they do, is move it to the Sheriff department storage area. I think you have a year to pick it up before they sell at Sheriff's sale. After 30 days there-you might start incurring a storage fee. My concern is how they handle the belongings.

Hi Groze,

My husband is a notary and works with some of the people who handle to foreclosures in this area. Technically they are supposed to move it, but in our county, they throw it all away. I am trying to find a way to get Ocwen to see it is a 2nd. They are pretty dense.

[800score]

 

 

Do you have equity in the home sufficient to pay off the first mortgage if the home were sold.?

Thank you for asking. Unfortunately, no. We are upside down in the home. Otherwise we would refinance.

Then unless the second mortgage holder wants to come up with cash out of their pocket to pay off the first mortgage at the foreclosure sale, they won't foreclose. I had a second mortgage as well with BOA and they threatened more than once to start foreclosure proceedings. They backed off each time as my condo was way under water. They would have gained nothing in a foreclosure auction, and in fact they would have lost even more money.

Agreed. I'm sure Chase will be happy if Ocwen wants to take over and continue payments to them. LOL!

 

I also agree that your husband is foolish. Tsk, tsk, tsk.