It is a strange set of events but is happening more and more often with banks and foreclosed properties. Homeowners are being served notices from mortgage companies informing them that they are being foreclosed on, so they vacat the property and attempt to take up residince somewhere else only to be contacted by the municipal governemtn for the community they lived. The homeowners are reciving notices from their cities demending that they resume maintance on the property. A perfect example of this occurred in South Bend Indiana to a Ms. Mercy James. Ms. James had received comunicatrion from her lending institution on several occasions informing her that she was being foreclosed on. This particular property was rental property, so Ms. James had the tenants mopve out and her vacant home fell into the hands of vandals, and was ransacked to the point it eventualy sat n disrepair. The bank acxtually dropped the foreclosure and did not bother to contact Ms. James to inform her of the situation. The bank virtually walked-away from the property, having no interest in the damaged property. The bank actually casncelled the Sherriff sale at the last minute to Ms. James surprise. This action by the bank left the property title and a heep of troulbe in her lap. "I thought, 'What kind of game is this?' " Ms. James, 41, said while picking at trash at the now worthless home. The city now plans to demolish it and is insisting on Ms. James footing the bill for its demolition. Banks are failing to take possession of properties at the end of the foreclosure process because the cost of repairing the home and the legal fees involved exceed the diminished value of the property. Unfortunately these walk-a- ways rarely mean relief for the property owner. The homeowners are caught off guard, thinking that their home has been foreclosed and sold at a sheriff's sale, and unusually do not find out until the local municipalities contact them months later. Technically they still owe on the mortgage but are rarely are any other payments collected by the mortgage company. This is partly due to the resale of mortgages as loan institutions close and sell their loans in bundles to other companies. Due to the turning over of these loans from one financial lender to another can make it almost impossible to determine what loan company owns the mortgage. In Ms. James's case, the company that was most recently servicing her loan is now defunct. Its parent company filed for bankruptcy and dissolved. And the original bank that sold her the loan said it could not find a record of it. This downward spiral of events that just becomes a bigger and bigger nightmare for the homeowner can be avoided if the homeowner seeks professional help in modifying their mortgage before the situation becomes out of control. In some cases there is no resolving the delinquency, due to the severity of the homeowner's situation but a lot of times a simple mortgage modification would have prevented this entire scenario. So as a homeowner what do you do to not become stuck in the vortex that was so detrimental to Ms. James? To start with, you need to be honest with yourself. If you are finding yourself in a situation where you are faced with foreclosure and not sure what to do? Then you should seek the help of a reputable mortgage modification negotiation agency. Sit down with that agency and allow them to analyze your situation to see if they feel there is a chance of salvaging it. Once the agency has decided to take up your modification negotiations, make sure that the terms agreed upon are ones you can honestly afford. Do not put yourself back into a situation where you still can not manage to pay the monthly payments. Do what you can to prevent the foreclosure and hopefully you will not find yourself faced with the same thing Ms. James was faced with.
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