Sitting Here in Foreclosure Limbo , Waiting for the Mortgage Company to Decide. Yeah Sitting Here in Foreclosure Limbo. Every day I hear foreclosures are being halted and then I hear they are not being halted. Is my mortgage company going to foreclosure or are they are going to work with me? Are the foreclosure complaints valid? Can a magic wand be waived to cure all of the defects? I am in foreclosure limbo. The headlines read HAMP works … The headlines read HAMP does not workâ€¦. Who do I call? What do I do? What is going and what are my options? So Many things I Got to Learn Meanwhile, the mortgage company is putting up resistance.. Is my faith enough to lead me onâ€¦. Well actually not: Every day my clients call and want to know â€œwhat should I do?â€ These are the questions my clients are asking. Do I file bankruptcy or do I wait on my mortgage company, the government or someone else to lead me on? 1.Are the foreclosures being halted and what does this mean to the average home-owner? Some mortgage companies are slowing down and looking at the paperwork involved in the foreclosure process. Initially it appears that it is more important in judicial foreclosures states. These are states where the mortgage companies have to file a court procedure to foreclose on the properties. There are 23 judicial foreclosure states including Ohio. The mortgage companies are reviewing their documents to make sure they meet the legal requirements.Within a few days, some have announced that they have fixed their paperwork. This means that there will be delay but eventually the mortgage company will foreclose. There is hope that these errors will force the mortgage companies to be more willing to negotiate a modification or become willing to offer to negotiate a settlement. It is still early, but so far it does not appear that the mortgage companies are any more interested in helping individuals than before. SITING HERE IN LIMBO WAITING FOR THE DICE TO ROLL 2.Is HAMP (HOME AFFORDABILITY MORTGAGE PROGRAM) Working? The numbers released this week seems to say NO. It works for some but is seems for the large part not to be successful…Does that mean you should not try a HAMP modification? Does it mean you just give up? I continue to instruct my clients to contact their mortgage company to try to work out a modification. They should work with a nonprofit group for help if necessary. It is very encouraging to me, and to my clients, when a client has completed the trial period and has received a modification. I tell my clients to have patience but to be persistent. 3 Should I File Bankruptcy and Should I Still File It Now? The answer is one that depends on all the facts in your case. My biggest concern right now is that people are not taking the time to learn their rights. They are reading that foreclosures are on hold or that HAMP is working so they are choosing not to consult a professional like a bankruptcy lawyer or a foreclosure defense lawyer. Many are just waiting to see what will happen. Time is very important during this process. You should learn your rights early and be prepared to act on all your options. It is very important to review your situation with a lawyer so you do not miss important deadlines or misunderstand your rights. It is not enough to hope your faith and the mortgage company will lead you on.
Hats off to Jimmy Cliff for the great song SITTING HERE IN LIMBO