RBMG mortgage Did Not Submit FHA Papers/But I Closed Thinking I had A FHA Loan South Carolina Nationwide
when I close on my loan I suppose to have had a FHA loan HUD approved something happened when they processed the paper work I was told it was done wrong and never corrected. I got behind on my mortgage and called HUD with my case number and they told me I did not have a HUD or FHA loan that how I found out, Also when I tried to go through the mortgage company to arange repayment it was sold not once but to 3 different companies and with everyone of them I tried to do what they said but everytime I tried to get a modification it was sold now I owe 16000 if I had a FHA Loan I could have stopped this when I was only behind 2 payments Do I have any grounds on a lawsuit on any one of these companys. I had to wait up to 2-3 months on each tranfer to apply for modification which helped in getting me further and further behind
Kym
Little Rock, Arkansas
U.S.A.
2 Updates & Rebuttals
Steve
Corona,California,
U.S.A.
When you default... The holder of the note has NO OBLIGATION; legal, moral, or otherwise to work with the homeowner
#3Consumer Suggestion
Thu, June 23, 2005
When a borrower defaults on a home loan, the holder of the note has an obligation to enforce the terms of the contract.
Is there any room for discussion here? Sure. But the homeowner must be ahead of the problem BEFORE it become even 30 days late. Even then, you can not let it get more than 30 days late.
The holder of the note has NO OBLIGATION; legal, moral, or otherwise to work with the homeowner on the resolution of the problem if the homeowner lacks the capacity to bring the obligation current. Maybe a month or two, but after that, forget it.
Julie
Guthrie,Oklahoma,
U.S.A.
Unfortunately not a rip off.... Mortgage companies can sell your loan as many times as they want to
#3Consumer Suggestion
Wed, June 22, 2005
HUD has a process whereby they "endorse" your loan. So when you apply for an fha loan, and close on it, you don't have an fha loan until HUD endorses it. And if HUD doesn't endorse it, you have a conventional loan. The mortgage company doesn't have to let you know this either (they should tell you, but they don't have to).
Mortgage companies can sell your loan as many times as they want to, they have the right to transfer (this is a clause in your mortgage).
If you had an fha loan, you still wouldn't have been able to stop anything at the two month mark. HUD's loss mitigation is for parties between 3-12 months behind, so you would have been required to wait until you got that far behind if you wanted to do loss mitigation.
Unfortunately, when you get behind, mortgage companies will try to unload your loan, particularly if your loan isn't backed by anyone, a lot of companies don't want to take the loss and then there are some companies who like this kind of loan for whatever reason. But there isn't much you can do about their transferring causing you to get further behind.
If at the 2 month mark you could afford the loan again and wanted to do a modification, you should have all but those two months of payments saved. Then contact a local charity or church and they might be able to assist you with the two payments and you could reinstate the loan.
Did HUD say why your loan didn't get endorsed?