Coerced into bankruptcy and foreclosure

[Pamsibley]

My ex-husband, Ryan, and I purchased our home 13 years ago using an Adjustable Rate Mortgage because of our low credit scores, planning to refinance once our scores improved. Selene Finance gave us a loan with a rate of 6.5% fixed rate,which we still hoped to modify as our credit scores increased.After the loss of our infant son our marriage suffered and after a long separation, ended in a civil divorce. Sign the original down payment on the property of almost $30,000 had been made by me, our divorce decree stated that I keep the house but must refinance to relieve Ryan of his finical obligation. Once I had received the Release of Interest from Ryan I contacted Selene to begin the process and learned that being a stay at home mother may have cost my family our home.
Even though I had already been separated and making the payments on my own for over a year, they could not approve me for a loan because I had spent most of my marriage as a homemaker and did not have any verifiable income of my own so my credit score was too low to qualify. Not wanting our daughter to loose her home and having trust in me, my X agreed to give me more time to remove him from the financial liability of the loan. in December of 2017 I began struggling to keep my mortgage current, so I again contacted Selene and requested a Borrowers Assistance Form to hopefully lower my payments. Since I only owed $79,000 the representative I spoke to informed me that my payments could possibly be reduced from $801 to around four or five hundred dollars, although Ryan would still be included on the loan it would be a big relief.The representative also informed me that although they could not help me refinance my loan now, if I were to file bankruptcy then by law they would have to work with me to adjust my loan. When I received no response to the form I had submitted and had been unable to contact anyone by phone or internet to discuss my situation with I considered the other option suggested by the Selene representative.
I contacted a bankruptcy lawyer in Tacoma, WA who gave me more discouraging information, although my credit was too low to qualify for a loan, my debt was too low to qualify for bankruptcy. Although he did inform me that if my mortgage became delinquent and went into foreclosure that bankruptcy would immediately stop that process and force my bank to modify my loan, and would save my family’s home. Reluctantly but with minimal options I followed his advice, but quickly attempted change my decision but was too late. In January of 2018 was the first time ever that my payment had not been on time and i was,
by the end of February I was regretting this choice and attempted to contact Selene on the 26th, 27th and 28th by phone and online but was unable, my internet access had been blocked by Selene and I could not get passed the automated operators to make a payment or speak to a representative to repair my account.
On March 1, 2018 I was finally able to speak to a Representative who was able to unlock my online access to my account, but could not accept the payment I was attempting to submit. Since it was the first of a new month balance now totaled three payments due, and even though I had attempted for three days to make this payment, Selene refused to accept any payment less that two months total amount. I asked to speak to a supervisor and was informed that no supervisor would be able to override this policy and refused my request to be transferred. Since I had used some of the money to catch up on some of the other bills I had been struggling with I only had enough money to cover one months payment at the time. Since I was already in finical distress I had no way to come up with the funds to repair my loan and avoid foreclosure, so my only option was to follow the advice I had received from the Selene rep and file for bankruptcy.
Once I got notice that Selene had started the foreclosure process I met with an attorney and filed for bankruptcy in order to save my home. The day after filing with the court my attorney contacted me to inform me that Selene had done something he had rarely seen banks do, they had filed a motion to be excluded from my bankruptcy and scheduled my home for auction the following week. Once again I contacted Selene to discuss options to keep my home, but again, I was unable to get through to speak to any person, however I was contacted by a nonprofit attorney’s office offering to assist me and was informed that the auction had been postponed. I expected this extra time to been intended to renegotiate my loan and save my home.
Again I was denied by Selene Finance when inquired about my options, since I was now in bankruptcy there was no possibility of them considering me for a loan until at least two years after my case was discharged, regardless of what led me to that position. I decided to to complete the bankruptcy process since besides my home loan i had very little debt to consider, however it had cost me almost two grand that is not refundable to have the attorney file my case with the courts.
On November 02, 2018 my home was scheduled for auction at which it was purchased by Selene Finance according to the Notice to Vacate that I received shortly afterwards. I postponed moving by submitting a letter to the attorney stating that I was disputing the legality of the sale, based on the fact that Selene Finance had refused to modify my loan and it was their representative who advised me to use bankruptcy to get my loan modified to an affordable rate.

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