The American Dream...or Nightmare?
The adage goes; “When life gives you lemons…” this column is one of those times. I will attempt not only to inform but also to help with information and facts that if I had my way, no one would ever have to hear about or use.
Foreclosure has become a common word heard in our vocabulary daily over the last few years. About one in every eighty-eight homes received a foreclosure filing notice in the first half of 2009 in the Minneapolis-St. Paul metropolitan area. Little did I realize, my family would be one of those homes.
First off, I am not looking for any sympathy for what we have gone through. Rather it is my hope that this article can help any other readers who may enter into this very emotional and stressful time with some information that might help you get through it.
The first thing that will happen, is you will receive from your lender a form letter stating that you are now in a status of “Pre-foreclosure”. What this means is that the lender has started proceedings against you and are preparing to take possession of your home. When this occurs, you must start to get your finances and records in order. If you are like me, filing and record keeping are not a strong suit.
The first thing that you should try to obtain is your original mortgage document. This will be a very important document because it will contain the original agreement that you and the lender entered into. You should also be prepared to produce tax records, pay stubs, utility bills, medical expenses, and if possible, all records of ALL payments made to your mortgage holder. And if you can, obtain a lawyer with knowledge of real estate and lending law.
When you enter into pre-foreclosure, your lender will no longer accept payments on your debt. It is very important to realize that the lender cannot accept payments from you. If they accept a payment, the process must begin again. Very important, you must save every dime you can! If you have any desire to stay in your home, you will need to show that you have the ability to make the payments and thus retain your home. In addition, when the foreclosure process reaches a conclusion, you will be required to send a large sum of money to the mortgage lender at that time in order to reinstate the mortgage.
During the process, the lender will provide you with the name of an advocate who will act as a representative between you and the mortgage corporation to help you with the process. In my case, the go between was Habitat for Humanity. I again urge you to obtain legal counsel in addition to the advocate.
Often during the process, you will be required to send in many papers to the lender. One of these papers is an item called a hardship letter. You must describe in your own terms why you fell behind in your payments and are now in foreclosure. Be honest and truthful but also make certain that your argument is one that can be convincing to the lender.
I advise that anytime you send paperwork in, MAKE COPIES! I say this with the knowledge that if your lender was like mine, they will lose your paperwork almost as often as you send it. In one instance, my paperwork was lost seven times. In speaking to others who also went through this nightmare, it was the norm that paperwork was lost. Prepare to send in the same paperwork many times. This was one of the most frustrating things of all.
Prepare to hear many different scenarios of what to expect. Some foreclosures take a very long period of time, and others will not enter into a foreclosure until almost a year of missing payments. In my individual case, we were three months behind in payments, and the notice of Sheriff’s sale came in the fifth month of the process. I can only speculate as to why mine was a rapid turnaround. In my opinion, our home was desired to be reclaimed and resold for a higher margin of profit because such a small amount of total principle remained.
The final piece of the puzzle is the notice of Sheriff’s sale. One of the most depressing and feared knocks on the door you will ever hear. A member of the County Sheriff’s office is required to personally deliver to you the notice of the date that your home will be relinquished from you and resold on the open market; either through an auction, or to another realtor. This also means that the final offer that your lender will offer you is also coming soon. Needless to say, it is almost impossible not to feel that you have lost the battle.
But the final fight is about to start, the final offer. I will attempt to replay my own final offer to you. I received notice of the final offer arriving on a Friday morning. I only found out because the lender stated that the fax I had sent to them was not what they required. The paperwork they needed was lost (surprise) in a Federal Express truck somewhere in the Minneapolis area. The paperwork I was suppose to have at 10:00 am on that Friday was not delivered until 4:45 pm that afternoon!
The paperwork was many pages thick and required numerous documents to be filled out. Another hardship letter needed to be written (the fourth one), the previous two years of income tax returns, the most current payroll checks received, utility bills to prove that we were still residing in the home, as well as three pages of signatures and spaces that had to contain a notary’s stamp and signature. In addition to this, a check for $3,800 was required. This is why you must safe every dime.
The most frustrating thing was that this paperwork had to completed and received back in Dallas, Texas by start of business day; MONDAY!
What made this most difficult is that I had to work both Friday night, as well as Saturday morning. We completed our paperwork on Saturday afternoon at 1:45 pm, only to discover that the last Federal Express pickup for a Monday delivery was at Noon, and the next pickup would not be until Monday afternoon for outgoing packages! I asked if we could deliver it direct to the Federal Express facility at the airport, but we were told that we could not.
. We also tried the U.S. Postal Service at the airport for priority next day mail service, but their last pickup was also at Noon. We felt now that all was lost, because the lender was not understanding of our situation when we asked if we could have until Tuesday.
Our last option was Delta DASH. This places the package on a commercial flight to the airport closest to the destination. We were able to have the package sent to the Dallas Airport to arrive on Sunday. Price for the one-pound package: $128.63. Not bad considering the alternative would be losing our home.
Now, I knew the lender would not pick up the package at the airport. I had to obtain a courier in Dallas to deliver the package to the mortgage company. Thank goodness for the internet. A courier was obtained for an additional $98.53. Final cost: $227.16, but we were that must closer to the end of the nightmare, or so we thought.
Numerous phone calls on Monday confirmed that the package had been delivered to the final destination at 9:52 am, and had been signed for.
But because the package had not been sent by Federal Express, the mortgage holder refused to accept or acknowledge receipt of the package. After numerous calls that I can only describe as becoming confrontational in nature, receipt of package was admitted to. Our home was saved! For now.
Our modification begins a brand new journey with a brand new thirty- year mortgage. At the age of 52, I think the realization has set in that we will never pay for our home. Frustrating yes, but our family refuses to lose this fight. Some union members just don’t know how to quit. Each month continues to bring new confusion and frustration in this never-ending battle with our mortgage holder.
I hope you will never experience this, but with a new foreclosure beginning every 47 seconds in our nation, chances are you might. You will be under an immense amount of frustration and stress. Rely on your family and friends for support and encouragement. I thank God for my wife and son. I would never have been able to manage without them. Also to my dear friend; Jim Cohen. Without whose guidance and direction, retaining our home would not have been possible.
Next time, I will discuss the May trip to Washington DC, and the major occurrences that I hope will bring positive change not just for me, but also for all working men and women in our nation and world.
Until next time brothers and sisters, remember we are ALL in this together, and also…
Solidarity Today! Solidarity Tomorrow! And Solidarity Always!...
In ALL Ways!!!
AND VOTE! AUGUST 10, 2010!
In Solidarity,
Mark Freeman
Methodist Hospital
