Man Swears he’s Never Missed a House Payment, but there’s a Foreclosure Notice on his Door

In Uncategorized on May 18, 2012 at 11:54 pm

How’s this for a housing horror story: Imagine you’re living your life, things are all hunky-dory, and then one day you come home from work to find a foreclosure notice on your front door. When you call your mortgage servicing company, they tell you that your mortgage is six payments behind, you owe them a ton of money, and they’ve begun foreclosure proceedings to sell the house. And as far as you know, you’ve been making your payments every month like clockwork.
This is what happened to a man named Tim, who called me after pulling his hair out dealing with the mortgage company for a month..
“I called the bank when I got their notice, and they said it’s no mistake, somehow my loan is behind and they want to foreclose. How can this be?”
Tim swore he had never missed a house payment, and had never been notified by the servicer that his loan was past due. Which is odd, because usually if you miss a payment on a debt, that creditor is going to hound you night and day about it.
Now, if Tim had made all the payments, this should have been fairly easy to prove. But the problem was this: Tim had his house payment automatically deducted from his bank account electronically every month. And the bank that had his checking account, which Tim’s house payments came from,  was the same bank that serviced the mortgage. Some of the missed payments were from over three years ago, and they told Tim that yes, they could research the bank account to check on whether the payments had come out, but because the dates in question were so far in the past, it would take them several months to do the research. Meanwhile, the bank planned to auction the house in the next month.
“This is a nightmare,” Tim said.
That was putting it mildly.


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