Foul Play

I am trying to help a lady going into foreclosure. Her loan was sold to American Servicing Company and a few months later they were saying that she owes 600 dollars. She asked them to show her by looking at her payments for the last year, and there is no proof that she missed a payment. She is behind now because they want a lot more. She can not afford a lawyer. American Servicing Company would not talk to her.
She filed bankruptcy and did not include the house. Now she is rolling into another bankruptcy. I have 2 weeks to help her.

1. How can she stop the foreclosure since American Servicing Company has not provided any proof of missed payment pryor to initiating the foreclosure?

2. Can she put her house in the bankruptcy now that she has rolled into another one? :-?

Comments(11)

  • DaveT20th April, 2004

    She can't afford a lawyer, but she can afford to lose her house? Bankruptcy will not prevent foreclosure, it just slows it down a little.

    There are consumer protection agencies out there that may defend her against an unwarranted foreclosure pro bono. If you really want to help, pay the attorney fee for her.

  • NancyChadwick20th April, 2004

    In addition to the resource DaveT mentioned, there may also be a pro bono service available through the local Bar Association.

  • TheShortSalePro20th April, 2004

    Georgia, right?

    The foreclosure might not be the result of a missed payment. It might be the result of any material breach of the security deed, or the note which it secures.

    Property Taxes?

    Giving a second mortgage?

    Not cutting the lawn?

    Her right to cure will be found in the security deed, or note. In many cases, the Borrower has no right to cure once the loan is accelerated.

    [addsig]

  • foreman20th April, 2004

    her payments include taxes and insurance. They started off saying that she had some backpayments due, a few months after they bought the loan. But they can not show any proof.
    By the way SSP, did you get the Lost mitigation servicing link I sent you.

  • foreman20th April, 2004

    by the way it is an FHA insured loan

  • TheShortSalePro20th April, 2004

    #1. Yes, Foreman, I did check out the VA servicing link from 1997. Thanks.

    #2. I don't know why she didn't include the property in the initial bankruptcy, presumably a Chapter 13.

    #3. If she does amend the bankruptcy petition to include the mortgage, the mortgagee will have to show proofs to the bankruptcy trustee for the amount they claim to be past due....
    The proof, as they say, will come out in the pudding... (I know that this phrase is historically inaccurate.... but it's as close as I can recall)

  • foreman20th April, 2004

    I like that. Time to play at their level.

  • InActive_Account20th April, 2004

    Foreman,Is there a Legal Aid Society office in the area or Southern Poverty Law Center who provide legal assistance to those unable to afford it. Also check with the local Habitat for Humanity office they may be able to provide some assistance. Has the lender filed a Lis Pendens yet. This should provide the information you need.

  • foreman20th April, 2004

    Lis pendens..?? sorry don't know what that is. Please tell me. I gave the seller the number of the local department of banking and financing. I went to their web page and looks like they are the ones who may be able to help with that situation.

  • TheShortSalePro20th April, 2004

    Lis pendens sounds kinda judicial for a non judicial jurisdiction.

    In Georgia, the foreclosure proceeding is commenced by submitting a foreclosure notice to the official county newspaper for publication.

    Consider the old addage,"Too many cooks spoil the broth..."

    I think that the woman's bankruptcy attorney would be able to resolve this dispute.

  • foreman20th April, 2004

    there are 2 weeks left until foreclosure. In georgia the lender must advertise for 4 weeks before the foreclosure. And there is no redemption period afterwords. The bankruptcy attorney should have handled it when she initially filed bankruptcy. I don't think she included it because she thought she could sell it. It has been listed with a realtor for a year. I am trying to do some research American Servicing Company

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