Short version of the backstory:

About 5 years ago I was hospitalized and couldn't work. We had to pay a lot of money out of pocket due to some sort of insurance company screw-iup and I was in the hospital for a few weeks.

As a result of the unexpected $xx,000 expense, finances were very tight and we got three months behind on our primary home mortage a few months after all the medical problems started.  About the same time the mortgage company threatened to foreclose we worked out the money issue with the insurance company and got reimbursed for most of the out of pocket.  The mortgage company offered to refi our mortgage if we could give them a large payment, so we did that, were told everything was hunky dory, and that was that.  Since then there has never even been a late payment on the mortgage.

Anyway...

A few weeks ago my wife goes to her bank to look into 2nd mortgage/refi possibilities. We want to add a room to our house.  The bank brings up all the info and tells her they can't do anything; the house has been foreclosed on.  This is news to us.

Fortunately, our county has all of their court records online.  I go to their site and download copies of the supposed foreclosure (using the case numbers listed by the mortgage company on our credit report) and call the mortgage company.

They don't talk to people about this stuff. They will only allow communication with the special "credit reporting problem" group by fax.


So I fax them a letter explaining the situation, and include copies of praecipe to vacate the judgment they got against the property and the praecipe to discontinue and end the case, filed by the Attorney of record for the mortgage company and accepted by the court on 2/28/2008.

Translate from lawyer speak: this means that there is no foreclosure.

Today I get a form letter from the mortgage company that completely misses the point, telling me that they are required by law to report my payment information to the four major credit bureaus and that they can't change it. (We never even mentioned payments)  And that I should just send dispute letters to each of the credit bureaus which will be added to our credit report. Oh, and BTW, they will report the mortgage (which still exists) as "in dispute" which might affect the credit score.

The credit report contains documentable errors in fact, and we provided supporting documentation to the mortgage company (which they should have already had since the documents were filed by their lawyers) so they could correct their error.  

I think this one is worse than the last mortgage company credit report fiasco where we sold a house, paid off the mortgage, and they reported it to the credit bureaus as a short sale. At least they fixed that after a few month of complaining.

Guess I'll just be turning the whole mess over to our lawyer.  Hopefully he can resolves this.

I swear after selling my last house, I will NEVER buy one again. not worth the fucking games these people play.

Tldr.


When some one says "the short version is" its probably not

Who's the lender?

Yes, mortgage companies are staffed by total buffoons. Wells fargo is at the top of the list. Our mortgage got sold to them about a year and a half ago. I was absolutely livid.

In before the "well if you paid your bills blah blah derp" crowd.

And I'm willing to bet the lender starts with bank and ends with America.

CitiMortgage

I have had the displeasure of dealing with wells Fargo for two years now. They were going to penalize me for paying weekly without having a bank account with them. I was told that it was prohibited in the mortgage docs I signed with them. I then told them to show me where in my mortgage docs it was prohibited since they bought my loan and I had never signed a single piece of paper from them. Dumb fucks.

I had one of their reps tell me that if I didn't want to follow their rules that I shouldn't have borrowed money from them. I flipped out and told her that I never did borrow money from them. I just got fucked when my originator sold it to them.

Ouch. Heard some nightmare stories about them.

I never missed a payment but had multiple issues with my Mortgage company, Greentree. IMO, they epitomized the definition of the word scum. On multiple occasions they refused to credit extra principle payments to my account, instead putting them into escrow or some other bizarre BS.  It would take multiple phone calls to get any issue straightened out each and every time. It got so bad that I built a case file, with the help of a friend who was a former Federal investigator, and sent it the the State Attorney General's office for action.  That resulted in them assigning me my "personal" customer service rep. Nice gal but all she did was help resolve  the screw ups a little quicker.

BL is that 3 years ago I made the decision to pay off the mortgage, which I did about 8 months ago. Never again will I hold a mortgage. If I buy a house again it will be in cash.  My investment advisor will say  it's a bad move but there is just way too much scum-baggery in the mortgage industry.

I can relate to your issue. Wells Fargo really screwed me and was apparently selling my house in a few weeks... Finally got documentation that it was fixed today.. 10 mins worth of research on these big mortgage companies end and alot of there shit could be self resolved...

They're all scum.

Once I tried to convince mine that they shouldn't be taking out money for a PMI payment that they were never going to make, because of what my balance would be when the payment came due. The lower level flunkies understood this and took it off. Then a month later it was back again. I tried talking sense to a V.P. and got nowhere. So, I had to pay money in and then they had to pay it back.

When another company bought out my mortgage, they tried to impose an additional fee that was specifically prohibited by our contract. We pointed this out to them, they argued, but eventually sent us a letter saying that, while they would be eliminating this fee for all of the mortgages they held for our entire county, this did not mean that they had done anything wrong.

Yeah, right. You just did it out of the goodness of your hearts. You weren't breaking any county laws at all.

Assholes.

It realy just seems like  they just have a process that involves

1. Making contact as difficult as possible
2. Ignoring what you actually say
3. Respond by rote, regardless of the problem
4. Wait until client spends money on lawyer to respond, then do what was asked in the first place.

 OP signed the contract, is there a derp clause for lack of payment?


Failure to pay the loan as agreed is not the banks fault. I'm sure OP is a great guy but business is business. Corporations have no emotions


Let's say you made a deal with me here on the EE. You failed to pay and were banned. Who's fault would that be?

RIF

Perhaps you should practice

You still didn't make your payment as agreed on your original loan docs.

RIF

I guarantee they have a phone number.  It just takes a little digging.  Then the fun begins.

refi at their request, no foreclosure.

RIF


Thanks for playing

Deal with the devil.

I'm not saying you didn't try but these guys will fuck you in a heartbeat. Getting behind is where they got you by the short hairs.

Here's a fix.  Rent

Uhh wtf.

A hone is a place to live, not an investment.  If it turns out that way, even better.

And I pay less for my loan/taxes/insurance than I could rent a comparable house for.  Yeah it costs money to keep up but then again I don't call a contractor every time a bulb blows out either.

I highly doubt the loan docs were that simple.  I know you would have a wet dream if the bank could take someones house for making a payment 5 minutes late, but it doesn't work that way.

This.  Renting really has its benefits.

Some of you guys suggesting paying cash for a home crack me up, like you're talking about paying for a couch.


Funny shit.

Sounds like BOA or wells Fargo

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Until the person holding the mortgage starts being YOUR problem...

i agree 100 %, i hate buying and selling a house.

In the current environment finding a new place to rent is still less of a hassle than selling a house.

and...if you lose a good paying job, you can just go rent a smaller place.
i own, and would have no problem with renting.

its amazing how many dickweeds put thier hand in your pocket even when you buy with cash.
second worse is new cars...LOL.. i love the shit you have to go thru to even buy a car for 15k.

i buy cars a few months old, i despise dealing with the worms at the dealership.

They are NOT buffoons.


...they ARE out to fuck you.

We bought our land through Farm Credit Services, and in a year or so will finance the house through them and roll it all into one loan.

Paying cash for a home is silly, unless maybe one is talking about a trailer.

That said, paying cash for adding on to an existing structure instead of taking a 2nd mortgage is not silly.

the bottom line..

i read something about a year ago written by a communist. i mean the guy was a real believer in the communist system (perhaps i should say marxist).

on one thing i am beginning to agree with him. his whole missive was about how the government screwed up the housing market by getting involved.

basically the gov gives you a tax break on your mortgage. and the government is heavily involved in mortgages, va, fha, fannie and freddie and so forth. what this has done is to make owning a home appear to be more economically appealing than it really is.

imagine if you had to make a much larger down payment, no deductions. imagine if the government was not involved in the market at all. didnt promote the idea that everyone should own their own home. what you'd have would be a market that reflects real value for real costs and leaves the supply demand curve alone.

a very large part of what is going on now is a result of government meddling in the real estate business to 'influence' the market and promote home ownership and the home construction industry. tie the trend to allow even the poorest folkst to buy expensive first time homes and you have the wasteland that we all inhabit today. with the bureaucracy, overhead and fuck you remote customer service.

btw, the gov has done the same with the medical industry. and its worse.

lessons here that will never be applied..

Enough of the refinancing BS already.
You really don't need that room if you can't build it with cash.

Look into the time value of money.

From everything i've read on this site I'm convinced there are many here that could pay cash for a house.  Why is that funny?  

Hell, why "own" anything.   Go ahead and lease a car as well if that is your opinion.


For those of us who want actual ownership and final say over what we want to do with said property, buying is better than renting.





To an extent, I agree with you but where things get truly screwed up is when you have people who live on a shoe string budget or live beyond their means.    The idiots who can hardly make a monthly mortgage payment based off two incomes, those are the idiots who with the help of some shady lending practices have completely ruined the housing market.

First time I tried to buy a house was just as the market in California began to really take off.   We said screw it, didn't feel like paying 165k dollars for a 1000 sqft house(yes, 165 dollars a square foot).   House I just bought 2 years ago originally was built for 280k+ dollars in 2007.   I bought into it for 175k and am happy I did at the time I did.   Yes, market went down a tad more and the slightly bigger house with 3 car garage next to me wound up going for 179k dollars about 6-9 months after I bought my house.     However if I had waited I would be in the shitty situation now where all the foreclosures are being held by banks indefinitely while they try to artificially control the market and only trickle houses out.  

Now selling price is often being finalized days after the initial offering price with sale price being higher than asking.   The exact opposite of when I got in(list was 180k and I offered 175k on a short sale and nailed it).

So to a point, I agree with statements you've made but it's not entirely gov't. that is screwing things up.   The incentive is still there for people to buy a home but the problem is largely with the people who are trying to buy a home buying something beyond their means.  Otherwise many of these foreclosures would be largely safe from the economy if people had been smarter.

What exactly is confusing you? The fact that someone would be able to buy a home outright? Or is that you disagree with committing that amount of capital to a home and would rather use other monies, ala a mortgage company's, instead of committing your own funds.

To be honest buying a house nowadays isn't much beyond a couch...or at least a car. I see folks all the time driving cars that approach, or surpass, a 100k and down here in good ole Florida a very nice home can be had for 150-250K....

We all make our choices in life and where I'm at I don't want to owe a damn red cent to any banker, especially a bottom dwelling mortgage broker... Zero debt allows freedom of maneuver.

His credit report SHOULD note the late payments, but the foreclosure was vacated. That part should be removed from the CR.