Foreclosure Notice Despite Making Payments

[Halcronus]

Odd situation we have. I live with my current wife in a house which is in her and her ex husbands name. It was ordered to her in the divorce decree and he was ordered to tell the bank to be able to talk to us about the mortgage since it is only is his name. She had a year to get it out of his name and this date is coming up quickly. We have been making the payments on the house for the last 2 years however.

Yesterday we got a foreclosure notice which I was very surprised at because we have made every payment maybe not on time but we were current except they stop cashing the checks starting this january. We couldn't find out why because the bank wouldn't talk to us about the mortgage. Now he is getting taken to court over this for supposed nonpayment, but we have been paying it. So I guess what I'm asking is how do we stop the court from ruling into foreclosure. I have check stubs that show the payments have been made for the past year.

[OhMy]

Once you fall past a due date and you do not include late charges it is common practice for a loan servicer to not cash any checks until the account is caught up to date and in full.

Since this has been going on for a few months, dont you think that this was odd? The time to be on the phone with your servicer is NOW to try and stop the process and bring your account up to date.

[Halcronus]

What they have told us is that somehow our escrow fell behind over a thousand dollars because we paid them late so the escrow took a full house payment. They mailed two back to her ex husband as he is the one carrying the loan. They also said our house payment went from 306 to 575 a month because the escrow went up... How is that possible? We have a fixed APR.....

[OhMy]

What they have told us is that somehow our escrow fell behind over a thousand dollars because we paid them late so the escrow took a full house payment. They mailed two back to her ex husband as he is the one carrying the loan. They also said our house payment went from 306 to 575 a month because the escrow went up... How is that possible? We have a fixed APR.....

Increase in property taxes will cause the payment to go up. Increase in homeowners insurance will do that as well.

If the credit FICO score goes down, the insurnace company will raise the rates on the homeowners insurance, therefore, the mortgage payment will increase as well.

The loan may be a fixed rate but the other factors will raise the payment.