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CalAttorney2
CalAttorney2, Lawyer
Category: Real Estate Law
Satisfied Customers: 10244
Experience:  I am a civil litigation attorney with experience representing HOAs, homeowners, businesses and others in real estate matters.
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My mortgage company stopped accepting my mortgage payments.

Customer Question

My mortgage company stopped accepting my mortgage payments. After many months, they told me that it is because I did not pay my real estate taxes. I sent proof that I did. At the most, I owe around $7,000 due to them not taking the payments. They are demanding I pay over $21,000. My house is in PA. How is this legal? If not, what I can do? Thank you!
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  CalAttorney2 replied 1 year ago.

Dear Customer,

There are two ways to deal with this (I recommend the first one):

  1. Hire a civil litigation attorney to write to the bank and deal with them - threaten them with violations of the various banking acts (such as the Truth in Lending, Fair Housing, and various other federal laws), breach of contract, and negligence. The goal here isn't to file a civil lawsuit, it is simply to get the bank to agree that they messed up and enter into a settlement that places your account back into good standing (and corrects any negative entries against your credit, etc.).
    • I know that paying for a lawyer probably isn't what you want to do here, but it is the fastest, most efficient way to deal with this problem.
  2. You can try to work this out yourself with the bank (which you have already been doing). You can write the same types of letters yourself, and try to reach a settlement with them (but unfortunately they may not seriously change their position).
    • If this renegotiation fails, you can file a lawsuit, but this takes a lot of time, and gets expensive - you would be asking the court to issue "declaratory relief" in your favor (asking the court to issue judgment saying what each parties rights and obligations are under the terms of the contract).

If you do decide to hire a lawyer (remember, you are really just looking for someone to write a few letters, you aren't looking to get into lengthy and costly litigation - rather trying to avoid such a situation): You can find local attorneys using the State and local Bar Association directories, or private directories such as www.AVVO.com; www.FindLaw.com; or www.Martindale.com (I personally find www.AVVO.com to be the most user friendly).

Customer: replied 1 year ago.
I hired an attorney and he is a waste of time and money. He does not believe they will agree to my request. They tried to file a summary judgement, and were denied. He wrote to the mortgage's attorney stating my request, but, as stated, he does not believe it will work. I have wasted months of time and money.
Expert:  CalAttorney2 replied 1 year ago.

If you are already to the point of a Motion for Summary Judgment (that was denied), you are almost at trial - this is significantly further along than what your post indicated.

If you are uncomfortable with your attorney, find another one (especially before trial).

If this is a dispute over $14k in dispute (the amount of difference in your two positions) it is unusual that they cannot reach a meeting. They should have reached some sort of agreement (either through direct negotiations or through a mediation).

But, again, if you are already past the MSJ phase, you really do need to be prepped for trial, and if you aren't comfortable with your current attorney - get another.

(I don't recommend going to trial "pro per" - the rules of evidence are strictly enforced, and it is very hard to represent yourself in a general civil trial.)

Customer: replied 1 year ago.
Sorry. I was just advised of this motion. I was not shown anything about it. I offered to pay $5,000-$6,000 or suggested they refinance, as they had sent me a refinanced mortgage before, but it as for 40 years. My "attorney " told me that "mortgage companies don't (and almost can't) compromise their claim." which is the $21,000. How can that be true?
Expert:  CalAttorney2 replied 1 year ago.

Perhaps the person he is dealing with is unwilling to compromise the claim.

Based on what you are posting here - the problem is that the bank has a huge accounting problem with your account.

This is compounded by you not making payments over a period of time (I understand you sent payments, but they were returned - but however it happened, you didn't get money to them).

So the issue is simply to correct the accounting issue.

The issue of payment of fees and interest is something that should be negotiated to resolve the above issue.

This is something that should be resolved.

Customer: replied 1 year ago.
is it true that the mortgage companies don't (and almost can't) compromise their claim? They created this problem. It just astounds me that they can deny taking my payments, and destroy my credit, and then demand much more than I actually owe. I did nothing wrong and I get to pay much more than I should have to. It seems to me that they should own up to their mistake and, be very reasonable to avoid further problems. THANK YOU!!
Expert:  CalAttorney2 replied 1 year ago.

They should be negotiating with you - I don't know why they are not.

(Please keep in mind, I do not have your case file in front of me, and I cannot represent you - so I do not want to overstate this, your attorney has the advantage of being your representative in this matter - but this matter really should settle).

Customer: replied 1 year ago.
Would you represent me if I fire this attorney? If not, I will go to the sites you so kindly included for me.
Thank you. This is my last question. You have been very helpful.
Expert:  CalAttorney2 replied 1 year ago.

Unfortunately we cannot accept or solicit clients on this site.

Using the sites above to locate local civil litigation attorneys is going to be the best way to find a new attorney. (Make sure that you have a new attorney ready to represent you before dismissing your current lawyer - as a strategy matter it is probably better to be represented at this point than not).

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