Mortgage Forum

Joel Fraser

Lender: HFCMortgage: 30 years adjustable rate with current rate at 8.5%Taxes: up-to-dateInsurance: up-to-dateNumber of payments behind: 6Why behind: initially was due to a reduction in salary (went from making $55,000 to $30,000) then laid off.City/State: Schenectady, NYMonthly Payment: $879.69 Here's my story: Was placed in foreclosure in May 2007 due to loss of job. HFC was not willing to do a loss mitigation program with me. Retained an attorney who was useless. Months went by and by Oct.07 had to pay $9000 or lose my home. Came up with the funds thru a family member and paid it. Also, monthly payment was going from $744.11 to $844. Was told once I paid the $9000 my mortgage would be reinstated back to me and my 1st payment was due on or before Nov. 30, 2007. So, mailed the 1st payment and HFC declines it, infact, they declined both for Nov. and Dec. 2007...sent checks back saying I was still in foreclosure since May 2007. Made many calls, emails, faxes, letters to HFC and no one responded so I retained a new attorney. She sent letters, faxes, emails and no responses from HFC. Then, in Feb. 2008, I am issued foreclosure papers, again. Finally, in April08, HFC contacts my attorney and tells me to give them $3000 and pay $1350/month for the next 6 months, after the 6 months, my payments would go from $844.11 to $879.69 and my 8.5% rate would increase to 11% in 2 months! I did not accept this offer, how could I.monthly payments were way too high! After that offer, HFC went an entire month not contacting my attorney..finally..on May 1, 2008, theytell her that I was to pay $5325.89 by May 31st and my monthly payments would remain at $879.69 with the interest rate going from 8.5% to 11% in 2 months, or lose my home! I had 24 hours to accept thisoffer or else they were going to start the foreclsoure and sale on the house! My attorney said that this was a good offer, Icalled it a loss mitigation offer, and that I should accept it. So, I had no choice but to accept the offer and find a way to come up with the money. Now, I get an email from my attorney and she teels me that not only is the $5325.89 due by May 30th, but an additional $879.69 is due by May 30th for May's payment. I went back to her original email and it NEVER said anything about the additional $879.69! I have managed to come up with the $5325.89 but I do not have that other money! On top of that, my interest rate of 8.5% is going to increase to 11% in 2 months and then I'll be worse off..my payments will be well over $900/month! What do I do? Why is HFC not willing to do a loss mitigation program with me? My attorney says that they did..I disagree. My attorney says that I do not have any rights and that HFC can do whatever they want. I need advice!