I have a client that has contacting me about his home.
He was foreclosed on in 2009. He tells me he has been making payments to Chase Bank since the foreclosure, he can no longer afford them and wants to know what to do? I really do not know where to tell him to go next. At the time, the bank informed him that foreclosure was his best option, gave him $2,000 to get out quickly, and worried about his family he did as they asked..Now he is hearing about friends not paying anything after foreclosure. He does not know why he is paying but is afraid of ruining is rebuilt credit if he stops paying.
Help !!
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Thank you everyone, after reading all the paperwork, I have turned this file over to a Real Estate Attorney. There are too many twists and turns in his paper work for my expertise's.
If your client had really been making full payments, there would not have been any foreclosure.
If the foreclosure process is complete (i.e. the property went up for auction and is now bank owned) there is absolutely no reason why the owner should be making payments to the bank. He no longer owns the house.
The most likely analysis here is that the property is still in the "middle" of the foreclosure process. No auction has been scheduled. In this case the client has three options besides paying on a foreclosure mortgage: Option #1: Refinance, Option #2: Loan Modification, Option #3: Stop paying and live in the property for "free."
If the client has missed enough payments to be under foreclosure, then the credit hit is already on his account. He/She might as well stop paying and enjoy living in the house until the lender finished the foreclosure and the right of redemption expires.