Should I stop making my mortgage payments? Already stopped payments on my 2nd, now the first is getting difficult... I also owe 2008 &2009 prop

Asked by Eve, 92223 Fri Sep 25, 2009

taxes I'm single mother with pt job. Had minor adjustment on my 1st a yr ago to lower rate to 3.5%. Had to stop payments on 2nd. County overpriced my home value on my prop tax so I appealed, no answer yet x1yr. 1st mortg is getting harder to make and I'm in process of filing for bankruptcy (per bank's advise). Now, I'm advised to stop payments on 1st to get bank to restructure my loan (they refuse to help me now due to my current rate). In order to be on payment plan to repay 2008 prop taxes I have to pay 2009 tax in full-not likely! Just got letter from an agency who claims has vested interest in my prop per my bank note to make tax payments for me if I'm overdue, which will increase my monthly payments to repay what this agency pays for me in taxes???? Has anyone heard of this or is this a scam? would I benefit from letting them pay my taxes for me if it's legit? Not sure what to do, I get conflicting advise from bankruptcy lawyer and people who've gone thru process..

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Jenny A. Le, , California
Sun Nov 22, 2009
Although this question was asked since Sept 25, 2009, I hope the following additional information may help you or others:

First, do "not" stop making payments on your mortgage. A partial payment is better than stopping completely. The lenders are more willing to work with you if you at least "try".

When you contact the loan servicer, inquire about the Homeowner Affordable Mortgage Program (HAMP) and the Homeowner Affordable Refinance Program (HARP). These are government assistance programs derived from the stimulus package. If the homeowner has 2 mortgages on a home, the loans do NOT have to be combined. They can be refinanced/modified separately.

Second, do "not" make mortgage payments, property tax payments, HOA payments, etc to third party agencies. These third party agencies may be scams. "Always" make your payments "directly" to the lender, the county property tax office, the home owner associations, etc.

Third, if you are in California and considering loan modifications, be wary of these agencies:

Fourth, in Calfornia, effective October 11, 2009, Senate Bill 94 (SB 94) the measure prohibits any person, including Realtors/Agents, and ATTORNEYS, from demanding, claiming, charging, collecting or receiving an UPFRONT FEE from a borrower in connection with a promise to modify the borrower’s residential loan or to do some other form of mortgage loan forbearance. The advance fee prohibition for loan modification and forbearance services applies to residential property containing 4 or less dwelling units. A fee is allowed only when a case is successfully resolved.

Fifth, contact the following agencies for "FREE" help:
1 vote
Garrigus Real…, Agent, Redlands, CA
Thu Aug 7, 2014
A short sale maybe the best option for you. We specialize in short sales, please feel free to contact us directly so we can discuss the option with and determine if the short sale is the best route to solve your situation.
0 votes
Kelli J. Mor…, Agent, Beaumont, CA
Thu Jun 20, 2013
Jenny A. Le gives some great advice in the post below!

Tons of new programs out there since 2009!
0 votes
Garrigus Real…, Agent, Redlands, CA
Thu Jun 20, 2013
Unfortunately, some banks will not even consider a short sale without payment delinquency.
0 votes
Jesse Sierra, Agent, Pomona, CA
Sat Sep 26, 2009
Check this site out and look for a home couselor near you…
I agree with Fred, talk to a real estate attorney and see what tax and credit ramifications you will have.
The agency that sent you that letter is a scam. Again, bring that up when you talk to a real estate attorney.

Wishing you the best and be strong your family is counting on you,

Jes Sierra, B.Sc.
0 votes
Steve, , Rohnert Park, CA
Fri Sep 25, 2009
Try and get an idea of what your home is worth (you can probably find an agent to do a quick estimate for you) and let your lawyer know what you owe versus what the home is worth -- and ask what to do.

The lawyer is essential though. You got a lot going on in terms of debts and potential tax liens.
0 votes
Fred Griffin, , Tallahassee, FL
Fri Sep 25, 2009
You are asking a Legal Question - that is, you are asking if you can breach the terms of your Legal Obligation to make payments on money that you borrowed.

Please see a Real Estate Attorney for Legal Advice.

And yes, the letter you got is most probably a Total Scam. Report it to your State Department of Real Estate or State Department of Consumer Services or other Appropriate Government Agency.

Again, I understand that you are most likely short of funds at this time, but please see a Real Estate Attorney.

Best wishes,
Fred Griffin
0 votes
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