Larry
Tucson,#2Consumer Suggestion
Tue, August 10, 2004
If you have not already contacted a lawyer I would suggest doing so immediately. Arizona lenders use Deeds of Trust in place of mortgages. The difference is that the lender on a deed of trust can foreclose without going to court. He and he alone can decide that you are in default and then initiate a foreclosure without approval of a court of law. Foreclosure under a deed of trust takes only a few months instead of more than a year to foreclose on a mortgage. My suggestion would be that you pay the entire amount now demanded by the lender and note on the check "under protest." This makes it clear that you still dispute their version. Continue with your litigation and let things get sorted out there. If you do not pay in full the entire amount that Chase now claims you owe they can continue with their foreclosure. Your house will be sold at public auction for as little as 20% of its market value. It's a near-certainty that you will receive nothing for your equity and your credit will be ruined. This is not good. I hope you will post a follow-up when all the dust settles and let us know what happened.