Bank has started foreclosure process we have never missed or been late on payments

[redjewel81]

Hi from Washington state. My partner got a loan in 2009 from USDA that was taken over by Chase as the servicer. We have always paid the mortgage on time and we are current. He got sick and went on disability insurance in December 2013. In November 2014 he applied for a loan mod with Chase after the typical run around he got a response of short sale option only in mid January. We started to look at his online statements, and saw multiple line items for things called corporate advance starting 12/23/13. When he called to ask about it the rep let slip that there was a $95 fee for foreclosure documents on 12/23. We cannot see that $95 on any of the many statements he has acquired. He took his statement into a branch where he got confirmation that yes chase has started foreclosure process on a current loan, and the process was started in the middle of the request for modification. Chase says the case is under in house investigation, but t may be late March before he gets a response. We funneled all our money into keeping the mortgage paid so we have no cash for a lawyer, but I am worried we will come home to find the locks changed and a notice on the door. Any information will be helpful, because this stress is really challenging. Thank you!

 

[PaulMass]

I am worried we will come home to find the locks changed and a notice on the door.

It doesn't work that way. You will be provided notice if it happens.

 

[HUD-1]

Lenders will often pursue a dual track: a loss mitigation option along with starting a foreclosure action. if the loss mit action fails, they then continue on with the foreclosure. If the loss mit options fail and they do eventually pursue the foreclosure, you will get plenty of notice before locks being changed:

http://www.nolo.com/legal-encyclopedia/summary-washingtons-foreclosure-laws.html

 

[redjewel81]

Lenders will often pursue a dual track: a loss mitigation option along with starting a foreclosure action. if the loss mit action fails, they then continue on with the foreclosure. If the loss mit options fail and they do eventually pursue the foreclosure, you will get plenty of notice before locks being changed:

My partner was sent a letter in February that says "you are more than 30 days past due and are now in default" That is what actually prompted us to look into his payment status. So it is totally legal that the bank has started a foreclosure process on a mortgage that is current and has always been current? Is there any recourse to be taken for the fact that the transaction history on his account does not reflect what he has actually been charged? Thank you.