I'm not really sure where to start... We Have a Va loan and were unable to make a few payments do to bad renters since we aren't able to live in the house at this time we had to rent it out in hopes to move back eventually. Well we had our relater/step father in-law help us arrange with the bank to accept half of what we were behind in feb, and to continue to make the payments. We did make the payments on time and we were waiting for the options they were telling us about, we didn't ever receive anything! I got a letter about 6 months later saying that they wanted over 11k or they would foreclose. Not really sure where they got the 11k since we had been making the payments. The bank is keeping all of our payments in a separate account and not applying it to our loan.

After I got the letter I went into the bank and talked with one of the loan managers and we were on the phone for a while and the guy on the phone said that we weren't supposed to be making payments, that we were supposed to be saving all the money we could and then pay it at the end of an unspecified time. So I didn't make one payment but then the next month I made two payments in the branch. About two weeks later I got a letter saying that they are foreclosing now and that the only thing we could do was to pay the remaining balance.

We don't qualify for a modification, or repayment option because they say we never responded in time! They never sent us the papers!!! I tell them that and they get mean and act like I'm lying.

My Uncle who has been in the army since before I was born says that they cant foreclose on the house because we are active military, I need to know how to go about this.

When my husband deploys in a few months we will have more than enough money to make up the missed payments but we cant get the bank to wait. We don't know anyone who could loan us the money, and we cant really get a small loan because we have bad credit since the house has been showing up on the credit report as active foreclosure since last October.

I can't stand it! I'm having a nervous break down.

I don't know how we even got the house when our income is only $100 more than the mortgage! it wasn't ever anymore either.

We have been trying to get the relater to short sale the house but he is refusing because he is trying to save it. I do want to keep it but I hate dealing with him, he is so mean to me and wont ever listen to anything I say.

What will happen to my husband when it forecloses since he still has 7 more years and will probably re enlist again?

Ok. Slow down and back up a little bit. First off, are you living in the house or is it being rented or is it vacant? Secondly, By reviewing your checking account, how many months have gone by with the bank not cashing your mortgage payment? Also, do you have a copy of the paperwork for the payment arrangement that was made? What state is the property in?

The house is being rented out and has renters in it. The bank took the mortgage account off of our checking account. they have Feb-Aug. Feb was over 6k payment for them to stop and send us a plan but they never did. I sent the papers to the relator's and he also has a recording of the arrangement they made over the phone. The house is in California. In June is when I went into a branch when they told me to not make a payment, so I didn't pay July but then when I spoke to someone else they told me that whoever said that was wrong and to make a payment, so in Aug I made two payments. Then two weeks later they said they were going to foreclose and took the account off of our online banking.

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Originally posted by LYSMommy:
We don't know anyone who could loan us the money, and we cant really get a small loan because we have bad credit since the house has been showing up on the credit report as active foreclosure since last October.

What is the rest of the history? When it went into foreclosure in October, how many months behind were you? You mention the bank has the payments for Feb though August, did you pay anything between October and Feb?

And I am confused how when your husband deploys you will have more than enough money to pay the missed payments. How is his pay going up that much?

His pay isn't going up a lot, it will go up some yes and then with me being able to get a job we could do double payments. and no we didn't pay oct-feb those were the ones we missed as I said before. oct-feb were the only months we missed. we made an arrangement with the bank to pay for half and in turn they would send us other options of repayment and stop the foreclosure. they did stop the foreclosure but did not send any options.

Sounds like your mortgage payment is rolling at least 60-90 days late. Arrangements over the phone and paperwork that is not received by e-mail within a day are pretty much worthless. Attorney fees may have been charged as part of the foreclosure action. Call and find out how much is required to bring your loan current.

It's almost 8k now because we didn't pay sept and now October... I called them again today and they said they will accept another deposit of almost 3k to stop the foreclosure and try to set up a repayment plan. The bank refuses to send any emails or faxes, they will only send stuff in the mail. I know the payment is late, and its late by a total of about 4 months. Is why I am asking what will happen when it DOES foreclose. what will happen to my husband since he is in the army still and what actions will the VA take to get its money back.

If I can get an amount at least close to what they want it might be enough delay to start making up the payments.

There are attorney fees, they say that every time. I just want to know what will happen after they take the house.

I think your husband needs to talk to legal for help, or you need an attorney. The other choice is there are FREE foreclosure services run by United Way agencies. The base referral services (been a long time, forgot the name) may also send you to someone who can help. Do not pay any up front fees, most of those services are rip offs.

We went to JAG and they did help us write a letter to the bank asking them what exactly we owe and for what specific things because they were coming up with an amount that was off from what we had but we never heard back from them.

It's never possible for the homeowner to come up with the same figures as the bank in situations like this. You have to figure the total number of late fees, attorney fees, appraisal fees (they send an appraiser out to do a driveby appraisal), advertising fees, etc. Also, writing them a letter will not do anything to slow the process. Does your husband hold a security clearance? If so then he's probably screwed if it goes into foreclosure.