Inheriting 2nd Mortgage

[megh]

Our house has a 2nd mortgage, husband's name only. After he died, 7/03 I notified the co. of his death. They stopped sending statements, when I called they would not talk to me because I was not "the contract holder." I made payments, they were not credited; again I call and won't speak to me. They also told me not to make payments, they would only accept full payment, ($18g) which I could not do.

60 days they sent a notice of default and started foreclosure, took me four months to get anyone to talk to me and get it out of foreclosure for a $4g fee in costs. The notices they sent were in my husband's name, registered mail, which I also could not get since I was not him. I was informed of the foreclosure by my first mortgage company, just as a courtesy.

I pay the bill on time, monthly on the date I have from old statements, still do not get statements and they still refuse to speak to me. I have written several letters to them. They write back telling me they are looking into this and nothing more.

The house is in my name only now, has been since 1/04, the first mortg has also been in my name since then and have no problems with. I plan to pay 2nd off after the VA and insurance get done with the red tape mess. I can't sleep not knowing if I'm going to get another call that they are foreclosing again. The house is about 75% equity but I don't want to sell it. The first mortg co rep said that's why they're giving me a hard time, they want their money and know they can get it selling it. Do they have to let me pay or can they just up and sell it if I don't pay the full amount?

Tried to refinance but no one will refinance this small amount without a higher interest and lots of points.

I tried finding laws about this but my eyes are crossing trying to figure them out. I know this could possibly be legal with contracts, but can they really keep just not talking to me and not sending statements? Is there some kind of limit before they can default and foreclose?

I live in California, if that's any help. Thanks much,
Mary

 

[aschro]

Contact an attorney...

This case sounds like you need an attorney - the company sounds like it's playing hardball. You can usually get a consultation for free - or worst-case - for the going rate in your area. Sounds like it's such a mess that it would be worth it to you to spend $200-300 to hear what your rights are and where to go next. Simply open the phone book and look up a real estate attorney, or perhaps wills/trusts attorney. Or contact the local bar association in your county - they usually have a referral service. You won't get comprehensive answers on a message board - esp. since all the facts need to be carefully examined, and that can only happen with an attorney's help.

Good luck.

Alex

 

[lwpat]

After he died, 7/03 I notified the co. of his death. They stopped sending statements, when I called they would not talk to me because I was not "the contract holder."

I assume that the probate court has named you as the personal representative of your husbands estate since you were able to get the house in your name. Send them a certified letter with the letter from the court and advise them to send all notices to you. If you have not done this take the death certificate down to the courthouse and do it now.

It is unusual that the first mortgage holder will not refinance for an amount that will include both loans considering the equity. Have you tried talking to them about that option. You can always refinance a larger amount and then pay it off early.