They said the account was "locked". we're now trying a loan mod. with them
Real Estate Attorney
Depending on your loan documents, it is possible for the bank to insist that you bring the account current, i.e., they have no obligation to accept payment of less than 100% of the back payments plus late fees. Oddly enough, if they are in fact fixated on foreclosing, then the bank's return of your money is a wonderful thing, since it is money you would have otherwise lost. That being said, the bank MUST accept a full payment. I can assist you in getting that payment made. But, let me know if you'd like to meet with me to discuss whether, in fact, bringing your loan current is in fact the best option for you.
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Real Estate Attorney
Your question gives you your answer. If you are 75 days late, then you are in breach of your loan agreement. You can only cure your breach by paying the mortgage completely current, which includes additional interest, late fees, and possibly even the third month's payment (i.e. over 60 days late really means 3 payments are due).
I agree with Mr. Nagle that it may be a blessing in disguise for you to have your payment returned to you. You need to evaluate whether you will be able to reinstate your mortgage and remain current into the future. If not, Mr. Nagle is correct that you should evaluate your legal rights and obligations with an Arizona real estate attorney. You can evaluate if you are at risk for a deficiency judgment against you if the lender foreclosed on your home. If you are insulated from liability, you may want to pursue certain options. If you are at risk for liability, that may eliminate some of your options.
If you are truly looking to keep your current home and reinstate your mortgage, an attorney can assist you in confirming what the full reinstatement amount should be and getting the lender to accept that payment and reinstate your mortgage.
Disclaimer: This answer is provided for informational purposes only, does not constitute legal advice, and does not create an attorney-client relationship. I am licensed in Arizona and can only provide general comments on matters outside of Arizona law. Actual legal advice can only be provided after a direct consultation in which all of the relevant facts are considered before providing a response.
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