Can someone help define "extenuating circumstances"

[Anonymous]

Does anyone know if "extenuating circumstances" apply to your bank robo foreclosing on your PAID AS AGREED loan modification? My ex traded me in for a different model so lost about 1/3 of my income (luckily I was the bread winner). I asked for and received a loan modification, and paid diligently on it for nearly 2 years.

I would not have known the bank foreclosed at all, except that the IRS disallowed my property taxes on my returns; "said I had to be homeowner". NICE! That was when I found out the bank had actually foeclosed on the house 11 months prior!. I have proof that I was paying, and they were collecting the entire time; but not one company will touch me with a 10 foot pole, or a 3 year pole either. This is probably because the bank the rushed a short sale through in 30 days! Find someone on this site, or any other, that had a short sale in that little amount of time (without circumstances similar to mine). I have tried disputing it, (3X) but the bank just keeps submitting the short sale paperwork as proof that short sale took place. They also refuse to record any of the payments I made over the last almost 2 years.

I have been renting for a year now. I am wondering if it wouldn't have been easier to just let them foreclose in the first place. It would be 3.5 years in the rearview right now.

NO GOOD DEED GOES UNPUNISHED! That is what I get for trying to save the house.

[Anonymous]

Does anyone know if "extenuating circumstances" apply to your bank robo foreclosing on your PAID AS AGREED loan modification? My ex traded me in for a different model so lost about 1/3 of my income (luckily I was the bread winner). I asked for and received a loan modification, and paid diligently on it for nearly 2 years.

I would not have known the bank foreclosed at all, except that the IRS disallowed my property taxes on my returns; "said I had to be homeowner". NICE! That was when I found out the bank had actually foeclosed on the house 11 months prior!. I have proof that I was paying, and they were collecting the entire time; but not one company will touch me with a 10 foot pole, or a 3 year pole either. This is probably because the bank the rushed a short sale through in 30 days! Find someone on this site, or any other, that had a short sale in that little amount of time (without circumstances similar to mine). I have tried disputing it, (3X) but the bank just keeps submitting the short sale paperwork as proof that short sale took place. They also refuse to record any of the payments I made over the last almost 2 years.

I have been renting for a year now. I am wondering if it wouldn't have been easier to just let them foreclose in the first place. It would be 3.5 years in the rearview right now.

NO GOOD DEED GOES UNPUNISHED! That is what I get for trying to save the house.

[bigman023]

In my state, the law states the lender must provide 'good service'.  This means they have to be able to prove that they served you papers, which is how you would know the property was being foreclosed.  I would check to see if your state has a similar law.  In my state, if the bank can not prove 'good service' the foreclosure is voided, and the foreclosure process is restarted.  My suggestion would be to talk to an attorney.

Good Luck. It sounds like you got screwed.

[Anonymous]

It isn't like that in MI, all they have to do is post notice in some obscure newspaper (in print), as if anyone reads actual print. I seem to remember there being something in the works to make it a bit more complicated now, but when I was dealing with, that is what the rule was. Attorney said loan mods were still too new. I would be a trail blazer (trail blazing cases require legal fees up front) so, yup I am screwed unless I can convince a lender that what happened is "extenuating".

[bigman023]

Wow, I just googled Mi. foreclosure laws.  Pretty tough for the consumer.  Mi foreclosures can be done outside of the courts. 

[ShanetheMortgageMan]

Well that stinks - what does the old lender say when you asked them why they collected payments from you for 11 months after they took back the property? Was it being applied towards the deficiency (if there was one)? Unless you can prove every payment was made on time, as in a paper trail of the loan modification beginning date, cancelled checks for each payment, etc. I think it'll be impossible to prove it was an extenuating circumstance. Even with those documents, a divorce where you are awarded/accept the debt, modify it, and then the lender forecloses... comes with a side of skepticism, so you'll need to have thick skin if you plan on applying. But these cases are not new, where a lender forecloses on someone who was making on time payments under a loan modification... certainly not these days, so you may be able to find one who "ROBO prosecutes" lenders like you had for a flat fee. With a judge ruling in your favor, I think you'd not only have a rock solid case for an extenuating circumstance, you may even get awarded/refunded your payments after they took back the property (or whatever you end up suing them for). A short sale is when the owner (as in you at the time) puts their home up for sale, a buyer makes an offer and you accept, the contract is sent to your lender, and your lender approves you selling the home for less than what is owed and they'd be OK with that. A foreclosure does not occur if a short sale has occurred. The lender may have held a non-judicial foreclosure sale without you even knowing about it, and for less than what you owed, but that is a foreclosure sale not a short sale.

[Anonymous]

They said "no one lives free, you should have honored your original mortgage and this would not have happened". I asked why they bothered to do the loan mod at all. They said to "recoup some of the loss". I complained to the MI State Attorney, he said I was not alone in MI, and made a phone call for me. (that was when the bank bought the house back and offered the ridiculous new loan mod). Not only that, when I was finally left with no choice but to short sale the closing attorney said someone at the bank was charging back almost $400 of my monthly payment to a savings in my name at the bank (I DON"T HAVE AN ACCOUNT THERE). That is when I called the U.S. Attorney, who referred me to the Fed, who referred me to U.S. Controller of Currency, who added me to the pot. The USCC said I wasn't alone. The problem is that the bank stole my house and trashed my credit, now I have a choice to make. Use the living room as a master bedroom in an apt or change school districts from the only schools my children have known since kindergarten. When I spoke with an attorney (3 actually) they all said the exact same thing. "It's all to new, there is no case law and all the rules support the banks. They also said my loan mod seemed to be a contract enforcement issue (contracts do not have the same consumer protections as mortgages do). It all an illusion. {as a side note I dropped a local branch to get a statement for my "savings" they showed no record of me having one and looked at me like I was smoking crack! The wrost part is that I have tried disputing my credit with all this information, and the bottomline is, the only "relevant" proof I submitted............ the house was sold in short sale!

[Anonymous]

I have cancelled checks and the original loan papers (the house was awarded in a split decision, if ever sold we split profit/def). I have extensive paralegal experience and work as accountant now, so I have every scrap of paper to and from the bank as well as a recording of one conversation with the loan negotiator stating "I can say anything and offer anything I want, the only thing that matters is the paperwork I send you, and it may or may not be the same". I honestly think that is the only reason I have gotten as far as I have with my USCC  complaint. Plus; I don't think the bank appreciated having to buy the house back after they sold it (a MI US Attorney demand). Perhaps I should have let go of the house then and just negotiated a simple "paid as agreed, and I won't sue you for breech of contract deal", but I was trying to do the right thing with the property. I liked the house and didn't want to "take advantage of the market", but in the end I only ensured that perception, and am now forced to bring TWO 4" binders of paperwork everywhere to prove myself. (Perception is reality).