My father hasn't paid his mortgage in over a year due to a heart attack. Why hasn't his lender foreclosed?

Question

My dad suffered a heart attack that caused him to be out of work for about 8 months. He has not been able to pay his mortgage in over a year but his mortgage lender hasn't foreclosed on the home. I have contacted them on numerous occasions to discuss a modification or some other arrangement and I'm always told by the collections person that we will receive updated loan documents in the mail and we never do. We just keep geeting regular bills with the huge overdue amount on them.

We keep having trouble getting calls back from the lender and they seem to be giving us the run around. I'm happy that they haven't started foreclosure procedures but I'm worried that we can't speak to someone who can help us. I also wonder if this is one of the lenders who's going belly up soon and how that would affect his mortgage. Any suggestions?

Answer 1

They're probably waiting for the bail-out package from Congress. If they foreclose now, they lose a lot of money. If they wait for the bail-out, they might not lose so much.

Also, if this mortgage company goes belly-up, the Feds step in and prop up the company until another investor takes it over. You then make (or don't make, as it were) your payments to the new company.

Answer 2

some mortgage companies are so far behind they are letting people slide but I wouldnt expect them to never say anything and he may get forclosed on very soon. I would just pay his regular monthly bill until they call or keep trying to call them, but that may bring your situation into the spotlight and then they may move quicker on forclosure??? Im not sure thats a weird situation, but hey at least they are still trying to work with him.

Answer 3

Make sure you're documenting these attempts to do a workout.  You'll want to show your willingness to correct the situation.

Answer 4

Well, nothing you can really do - I mean you can't force them to move on this.  Just wait until they get their act together and see if you can work something out with them then.  Until then, enjoy the place rent free, but save up as much $$$ as you possibly can for when they finally do foreclose.

Answer 5

I think you should try and sell the house asap. I have never heard of a lender letting you go for over a year. Maybe you should get a lawyer to talk to the lender for you.