My husband, Mike McCulloch, and I have done everything humanly possible to maintain the mortgage on the property I own - or is that did own - at 708 East High Street in Union City, Tn. In 2007 our business sustained a huge loss, $150,000.00, and we have been struggling every since while awaiting the outcome of a lawsuit we have filed in an effort to regain a portion, if not all, of our loss. After receiving correspondence offering the option of reducing the monthly payment on this property, my husband (Mike McCulloch) filled out the necessary documents and faxed them in May of 2008. While we waited for a response, I received a notice saying I was facing foreclosure on the property in question. Stunned, we contacted PHH and were told that the documents we faxed had been misplaced and we needed to send them again, I was not being foreclosed on, computer generated mail, etc....This all occurred in early July after numerous phone calls had been made by us in an attempt to get a status report, or some type of response, to the information we had sent in May. At that time, my husband offered to make the two payments owed but was told they would not be accepted because we were 60 days delinquent. (Which we wouldn't have been if anyone had ever told us that the original set of documents had been lost. The only answer we ever received was that They were working on it. It being the refinance of the property based on what was owed.) Finally, we were told that the information we sent in May was no where to be found and we would need to send it all again but not to worry it was noted on my file that all the errors had occurred and there would be a speedy conclusion to the re-financing and all would be well. We received a new set of documents to fill out, did so and faxed them again. These were received by PHH on August 10, 2008. Since I had continued to receive letters from an attorney concerning a possible foreclosure, I was skeptical that PHH had any idea what was going on but continued to hope that all would be well. Surprise - I get registered mail stating that my property is going to be advertised in the local paper as a foreclosure offered for sale on August 27, 2008. After contacting the lawyer, I was assured that nothing concerning the refinancing option had moved forward as the documents were again, laying on someone's desk but if my husband provided a certified check for $2100.00 by Friday 8/29 and paid $1300.00 for the next nine months we could reinstate the mortgage but nothing could be done to stop the notice appearing in the paper. I was then contacted by Genworth Financial who I believe holds the mortgage insurance policy on the house. In conversation with Genworth, it was noted that they (Genworth) showed that the documents we said we had submitted in May had indeed been submitted. Why PHH had no record of this now or had done nothing with them was a question they could not answer. Furthermore, Genworth had a record that we had attempted to make the two payments and those payments were declined. Genworth also noted that we had resubmitted the documents necessary to refinance what I owed on the property. This was the most amazing fact though Genworth had no documentation concerning a foreclosure. They were somewhat surprised. I discussed the situation thoroughly with Genworth and was very impressed with the documentation they were able to provide along with their genuine concern over what had transpired.
In what has to be the most bizarre turn of events, PHH contacted my husband yesterday via his cell phone September 10, 2008 and wanted some information from him so that the documents we had resubmitted in August could be completed and a decision reached. (This is after the property has been advertised for public sale in the newspaper on August 27, September 3 and September 10.) He was fairly amused as was I. Those documents were received by PHH on August 10, 2008. Why in the world did it take over a month for someone to decide that further information was needed? He lost the call while crossing the Mississippi River Bridge and called back three times leaving messages each time. No one has called him back I would imagine that whoever he was speaking with heaved a sigh of relief thinking he had hung up on them. (To say that my husband speaks his mind would be an understatement and he really has very little use for PHH at this point) I did my part by contacting Genworth this morning to confirm the information I had already received from them which I did. I should also note that Genworth confirmed that PHH received our resubmitted documents on August 10 but did not begin processing them until September 4. The lady I spoke with did seem very concerned that this had been handled so poorly and that there had been such a lack of timely information and communication on the part of PHH. I will forward all documentation of this nightmare to our attorney. In the conversation my husband had with a PHH representative yesterday, it was pointed out to him that we would be responsible for all legal charges concerning this foreclosure proceeding. In the event that these charges are billed to me, I will use every means at my disposal to protest paying them. This situation did not come about because we were unwilling to make the necessary payments. It came about through error and lack of attention on the part of PHH.
I am a Realtor and I can assure you that I have spent a great deal of time trying to sell the property in question. It is not our primary residence and I have rented it off and on for the past four years. (I paid the increased insurance premiums necessary.) Even though we were not living in the property, we had worked diligently to make the payments and do the right thing since I had been unable to sell the house. I hoped to eventually be able to sell the house and, at the least, recoup my down payment. The housing market in Northwest Tennessee is poor and the chances of the property selling in the next six months are slim. Union City, where the property is located, is a very small town and any hope of selling the property for what I owe on it evaporated when the foreclosure notice came out in the paper. I have handled short sales, REO properties and any other type of real estate sale you can imagine so I feel that I am qualified to say that this mess is not going to turn out well for anyone involved. Hindsight being 20/20, I wish we had never attempted to re-finance the balance of the mortgage and had just kept making the original payment. In an effort to help our cash flow and remain in good standing with PHH, we trusted in the abilities of PHH employees to see to our best interests. Our trust was misplaced and misused.