I'm calling upon the awesome power of the DU regarding a mortgage issue...

[Javaman]

Someone I know (not me) just got a foreclosure notice...

The first thing I told them is to have the bank produce the actual mortgage.

The second thing I informed them of their rights regarding harassing debt phone calls.

Lastly, and this is where I need your help, they live in northern california and I have heard of various grass root organizations that help people in just this situation.

If you know of any resources by which these folks can turn to for help, please please please let me know.

I thank you all in advance.

Cheers!

[abelenkpe]

1. K&R

hope someone can give you the info you need

[Riley18]

2. Have they looked into NACA? The people at

HOPE are very nice and offer advice.

[Javaman]

4. They are a bit shell shocked...

I don't think they know where to turn.

What is NACA and HOPE?

Thanks for the help.

[Samantha]

3. It is the actual Promissory Note that is important

Most mortgage servicers do not have the original paperwork. In some cases, the original mortgage lender has gone out of business. Countrywide, for instance, re-sold mortgages but never passed along the original paperwork. They stored those in a warehouse, and where those originals are today is unknown.

So find out if the entity foreclosing is the original lender or a mortgage servicer. Either way, tell your friend to get a expert to look at the situation. Once a home has been declared foreclosed upon, often a myriad of fees are run up against the property. Drive-by inspections, attorneys' fees, things of that nature which are tacked on as part of the debt which must be paid. So in a month or so if your friend comes up with the amount due, probably that amount will be a lot higher because of these added fees, and the amount owed could be beyond his or her reach.

Sam

[Javaman]

6. Thank you so much for that info!

They are my step nieces boyfriends parents.
They are good people, just a little naive about somethings.

[pkdu]

5. Top seven links here look worthwhile ( after paid adverts)

https://www.google.com/search?q=how+to+halt+foreclosure&ie=UTF-8&oe=UTF-8&hl=en&client=safari

[Javaman]

7. Thank you!!

That's a very big help.

[Honeycombe8]

8. Your friends should have gotten one complete, certified, set of mortgage documents.

I did each of the three times I've been involved in buying a house. They presented it to me in a folder. The copies were certified, after being recorded.

The mortgage documents may include a document that says Deed of Trust at the top, or Mortgage at the top, and may include a Promissory Note. The particular documents vary from state to state.

First thing is....are they really behind on mortgage payments? If so, there may be little they can do, and they might be better off to cut their losses and work with the mtge co./bank to leave, and leave the place in good condition. That helps in that it helps the bank to sell it quickly, and keeps cleaning and repairing costs down.

The reason I mention working with the bank and cleaning before leaving is that after foreclosure, the bank doesn't let the debtor just walk away. They try to sell the house. If they do, and sell it for less than you owe, they can get a judgment against the debtor for deficiency (there will be attorney fees and expenses added to the deficiency amount) and even maybe seize their bank accounts. If there's nothing to seize, they will file an Abstract of Judgment with the county clerk, or multiple county clerks, against the debtor, and there it stays forever. The debtor will never be able to buy another house without paying off that Abstract of Judgment. It's a scary, messy situation and nothing to fool around with.

I use to do foreclosures. I regularly got judgments on debtors (don't blame me...it was added to my job duties!). I also went through a foreclosure once myself. The bank didn't send me a letter first. I called the bank, told them the situation (that I couldn't pay...they were going to have to foreclose). I left the place spotless and cute as a bee. They promptly sold it and didn't come after me for expenses or anything. Phew. I was lucky. The foreclosure stayed on my credit record for years (I think it was 7 years?). But I got passed it, and now have a credit rating so high that a car dealership told me he'd never seen a credit rating as high as mine. There is life after foreclosure.

[customerserviceguy]

9. They use Deeds of Trust in California

Non-judicial foreclosure in such states is not too tough for the lenders. On the other hand, reinstatement rights are better in those places than in mortgage/court proceeding states.

You also don't have deficiency judgments in such places, except in the rare instance that a lender decides to use a judicial foreclosure process. I can't imagine using that against someone who really didn't have much in the way of other assets.

[Javaman]

10. Update...

Thanks to all for your very valuable insight and information.

I just spoke to my friends, it appears as if Citibank (the alleged holders of the mortgage) can't come up with the paper work! LOL They are using all sorts of stalling and harassment tactics.

My friends have gotten a lawyer and are now well armed and certainly much better informed due to y'alls help.

Thank you all so much.

Cheers!