As a real estate agent that specializes for the last 18 months in foreclosures (I have been a licensed agent for 11.5 yrs)....this does not make sense.
In the first place, one has to be at least 3 months in arrears for a lender to take action. At that point, a letter or phone call is made to the homeowner that they need to contact the lender.
If nothing can be worked out between the homeowner and the lender the lender will put the property in pre-foreclosure....with notification to the homeowner. This is by mail....it is not registered or certified mail.
In the state of TN..the property is published in the paper- the first few pages of the classifieds----for 3 weeks and sold on the courthouse steps on the 4th week. I believe it is similar, if not identical, in most states.
In the current market, the lenders really do not want to foreclose as it will be a definite loss to the lender. They will work with the homeowner IF the homeowner initiates the desire to reach an amicable solution to the problem...of which there are many. BUT the homeowner MUST be the one to initiate the process. The lender WILL NOT initiate the process.
The other option, is for the homeowner to declare bankruptcy. This will stop the foreclosure process, allowing the homeowner to either delay and regroup their financing and start over, or the homeowner goes to the bankruptcy court and gives up the property and walks away from it.
Now.....this guy may not have realized that he had options....but if he spent $200K (
) ...I would assume he spent it with a lawyer...he should have had good advice. Otherwise, he should have applied that money to his mortgage and foreclosure would have been a moot point.
For a fabrication....he must have thought he was talking to a bunch of Dummies (
)....because quite frankly...the "yarn" he spun....wasn't knitted very well cause it's full of holes.
In other words....the story he gave ....is full of
I could go into more explanation of each of his statements.....but it would take a LOT more time and I would need to do it at another time.