Tom’s mortgage default nightmare and how to avoid this

In this episode, Tom shares his experience with a failed autopayment on one of his mortgages, sending him into mortgage default. We discuss how this happened and what can be done to avoid this hassle in the future.   --- Transcript Before we jump into the episode, here's a quick disclaimer about our content. The Remote Real Estate Investor podcast is for informational purposes only, and is not intended as investment advice. The views, opinions and strategies of both the hosts and the guests are their own and should not be considered as guidance from Roofstock. Make sure to always run your own numbers, make your own independent decisions and seek investment advice from licensed professionals.   Michael: What's going on everyone? Welcome to another episode of the Remote Real Estate Investor. I'm Michael Albaum and today I'm joined by my two co-hosts,   Tom: Tom Schneider   Emil: and Emil Shour...   Michael: and today we're going to be talking about an issue that Tom ran into that could easily happen to anyone with a mortgage. So let's get into it.   Alright, guys, it's been a minute good to see you both. How are things?   Tom: Things are good. Busy got two year olds and three month year olds and life man. It is, it is in it right now. But you know, things are really good. Everybody's happy, healthy. Well, so, can't complain.   Michael: Good, good, Emil?   Emil: Man. I can't, I feel like it's been forever that the three of us have been on a podcast forever time. Your kid is three months. That's, that's amazing, man. Yeah, same, same thing. I got two kids life is crazy. I feel like I never get to go surfing anymore. So I just like, live in my home gym, because that's the only activity I can do that keeps me occupied and sane. But everything's good, man. So I'm excited to hear what's going on today. Because we were about to tell me what we're like, no, let's just start recording this episode. So I'm very interested to hear what's going on with your portfolio.   Michael: Yeah, Tom, just take it away, man bring Emil and everybody listening up to speed on what's been going on in your world and we're going to talk through about how to solve it and how to avoid this type of situation going forward.       Tom: I think I'm gonna start with a shorter path of what is going on, and then we can kind of unpack a little bit. So I through the great financing opportunities, I refinanced a ton of my properties and the most recent one that I refinanced I found, you know, sort of a, you know, bad reviews on the lender, but hey, great rate, I complete the refinance, I sign up for, as with all my mortgages, sign up for paperless notifications, I sign up for, I guess, I'm doing a little more meandering one, I sign up for auto payment on my mortgage, my auto payment…, and my auto payment never hits, so it never hits and a couple of months go by, and I get a notice from my credit card that I've got a foreclosure on my record. So I go back to log in to the mortgage, servicer, and I'm blocked, I can't get in. So now the, speeding up the story much faster. I just reinstated my loan and went through a foreclosure never got like notification on this and I am absolutely, you know, kind of in the middle of it right now and that I just reinstated the loan and I'm going through the process of like, kind of demanding that they fix my credit, and all that stuff. So anyways, that's the that is the issue that I've been going through and go ahead, Michael grill me I'm you know, yeah…   Michael: Well, just in taking a step back. So you missed the first mortgage payment after the refinance?   Tom: Yep, yeah.   Michael: Okay. How, how did that happen? Because you signed up for auto pay.   Tom: I signed up for auto pay as the first mortgage payment was hitting, and I signed up for it, and figured I was done. The email correspondence I got was, hey, you're all set up for auto pay. What happened is that initial charge hit. So I, the auto pay doesn't work, if you