Foreclosure Defense and Loan Modification Blog

When researching options for preventing foreclosure, expect to encounter conflicting opinions regarding the most effective strategy. That's to be expected, because personal finance is exactly that – personal. What makes sense for one person's financial situation may not be the right move for a person with slightly different circumstances. Some homeowners choose a strategy that includes filing bankruptcy to avoid foreclosure. Careful review may lead others to decide they're better served by combining a loan modification program with aggressive foreclosure defense.

Immediate Effect of Filing Bankruptcy

Filing bankruptcy holds a major appeal to stressed homeowners worried about foreclosure. It brings foreclosure proceedings to a temporary halt, offering the homeowner a bit of respite from the ticking foreclosure clock and buying some time to find a solution. That's because once bankruptcy is filed, no further action, including foreclosure, can be taken by the home loan lender without approval by the judge. Filing bankruptcy to avoid foreclosure has become an increasingly popular tactic.

By Nick Sweeney

The economy has been stuck on pause (or in some cases, rewind) for about three years now, and for about 59 of the last 60 months, we’ve been eagerly anticipating its quick turnaround so that we can finally get on with our lives.

Instead of waiting for the economy to get better, perhaps it’s us who should get better. Here are three suggested areas to cutback, rethink or undo to wade through this economic onslaught.

Technology

An iPad is really cool to look at, but is it holding more game apps than work apps? Is it really leveraging your business? It may be, but be aware that not all gadgets are created equally when it comes to productivity. Only you know if you’re giving Facebook too much face time.

Conversely, tech tools may also end up saving you money. Just remember to ask yourself if that new gadget or service is a tool or a toy (hint: if it helps you close more deals more quickly, it’s a tool).

Yes! You CAN check your foreclosure status online in most Florida counties. Some Florida Counties have very detailed and comprehensive case information and docket schedules on their website and available to the public. Other counties provide very limited, or no case information on their site - unless you create an account and pay for the case information.

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.

Like many other households, one Pennsylvania household had suffered a lot over the past several years. The economy had taken a major toll on the life of their family. Both the husband and wife had lost their jobs in the late '00s, and they had never quite been able to get back on their feet, even after going through bankruptcy. The last thing they wanted to do was to lose their family's beautiful home because they couldn't pay their $2,000 monthly mortgage payment to Chase, or their $2,000 secondary mortgage payment to Sekure Mortgage (SFC). They had already tried to get a loan modification on their own when paying the mortgage became a bit too hard, but were unsuccessful in that endeavor, as were many other homeowners.

Experiencing temporary or long-term hardship or receiving a foreclosure notice is not a death notice for your house.There are a wide range of options available for homeowners who are in financial trouble.

Cats can't save your home, but the tactics below can!

Although foreclosure laws vary from state to state, most states require that the lender file a lawsuit with the circuit court in the county that the property is located. As a result, the homeowner will receive a notice of lawsuit. Once the homeowner receives this notice, it's imperative that he or she speak to legal foreclosure counsel, or else they are most likely already in over their heads. Even with this information, some homeowners choose to represent themselves and quickly discover their inability to navigate toward a favorable outcome in the legal process.

The unofficial definition of a deficiency judgment, sometimes called a mortgage deficiency judgment, could be something like: “…When your former mortgage lender won’t let you go.” Unfortunately, the real answer is a little more complicated.

If the unthinkable happens and you lose your home to foreclosure sale, there could be two outcomes. The first outcome is that the lender receives the amount of money you owe on the mortgage. In a perfect world, your house is worth $100,000 and it sells at foreclosure auction for at least $100,000, then your mortgage lender is just a bad memory (maybe).

If you were to believe everything you've ever heard, stepping on a crack would result in your mother's broken back, and you'd be more golden than King Midas based on all the pots you would have collected at the end of rainbows. However, these myths are just like many of the foreclosure myths, simply untrue. Recognizing some of the crazier myths has always been easy, but many of the foreclosure myths seemingly have merit. In the quest for the truth, some of the most common foreclosure myths are put to the test. In true myth buster fashion, the following information features foreclosure myths tested, tried, and ultimately debunked.

MYTH #1

My credit will be damaged forever.

Although a foreclosure will have a negative effect on your credit score, you can recover. Today's borrowers can be approved for FHA loans in as little as one year after a foreclosure. However, you can't have any other derogatory marks on your credit report at the time.

By John Voket, RISMedia Columnist

In a previous segment, I touched on several options for mortgage holders who are underwater. Then I ran across some particularly timely information courtesy of Anna Kerr of Refinanceitt.com, an online refinance loan company in Schaumburg, SC.

Kerr says if you are lacking behind in the mortgage and are not able to qualify for loan modification or some other kind of payment, you should opt for mortgage modification.

Home loan modification permits the consumer to interact with the lender and avail the desired loan terms and conditions. According to Kerr, you can state your preferences, which will enable you to pay the loan with ease and comfort.

She says chances are the lender will either decrease the mortgage modification rate, which will in turn decrease your payment per month, or give an extension in the loan term and be assured that the dues are included in the main balance of the loan.

Kerr says you begin by calling up the lender or the present mortgage service provider who has been given rights by your lender. Before contacting your lender, however, keep in mind three important things.

Here's something that probably didn't make your local news: David J. Stern, the so-called "Foreclosure King" will more than likely lose his law license and will have to pay a $50,000 fine to the Florida Bar. This follows an extensive investigation and civil suit from the Florida Bar Association. While the fact is that this is the only court decision against Stern himself thus far (his companies, however, have been sued several times, and one of his companies is in the process of suing Stern for $60,000,000) surely pleased Stern, the big banks, and their cronies, it's a slap in the face to every homeowner in the nation, not to mention the homeowners in the Sunshine State who were torched by his firms' actions. 

Who is David J. Stern?

If you're not familiar with David J. Stern and the impact he's had on the state of Florida, imagine if most of the court cases in one state (the nation's 4th most-populated state, at that) were controlled by a single law firm. Now imagine if this law firm was run in the most greedy and apathetic, but least efficient manner possible. Imagine that this law firm found several ways to make a mockery of everything the legal system stands for- from missing court appearances, to forging important documents, to blatantly disregarding the most basic laws that applied to its cases. Then imagine if these improprieties didn't only cost years worth of time and resources for the legal system and the taxpayers that finance it, but they also cost thousands and thousands of families their homes and livelihoods.

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.

This New Jersey homeowner was picking up the pieces after a divorce and could no longer afford his home. Worse, he missed out on a previous loan modification offer from Bank of America due to confusion about the documents he received. By the time he retained us in June 2013, he was already 39 months behind on his monthly mortgage payment of $2,701.43, and was in grave danger of foreclosure. Who's to say why Bank of America hadn't filed the foreclosure lawsuit yet, but after 3 years of missing mortgage payments, it is inevitable.

Immediately after the homeowner signed his retainer agreement, we began working with him to gather documents that are necessary to create a new loan modification package. This diligent homeowner was so organized that we were able to submit his loan modification package to Bank of America by the start of the following month, July 2013. After 3 months of staying on top of Bank of America's notoriously flaky loan modification department, we obtained a permanent loan modification offer from Bank of America. His payment would be lowered by over $450 monthly to $2,244.48 and his interest rate would be dropped from 5.50% to 4.75%. Best of all, the loan modification took about 3 months to complete, even with Bank of America's terrible record of helping troubled homeowners, and the threat of foreclosure on his home had been completely avoided.

Remember 2005? 2006? Remember the commercials on TV, and radio and everywhere telling you about the “cash rewards” and “cash out” refinances? So many Americans took advantage of these programs. Business was great, real estate was better.

Our client Dale, like thousands of other Americans, took advantage of one of these programs, and received cash out of his mortgage (and a 9.75% interest rate!) when he refinanced with Countrywide. In 2008, the Bank of America/Countrywide merger meant that Dale now had to deal with Bank of America.

If an industry insider was asked to compare the way big banks have handled the foreclosure crisis to the movies, he would not think of the highly coordinated drama of a war epic, nor would he mention the selfless heroism shown in superhero movies. Instead, he would probably compare the banks' ways to the silent ineptitude of the Marx Brothers or Charlie Chaplin; or even the destructive buffoonery of the Three Stooges.

Your Mortgage Lender Loves Slapstick Comedy

Unfortunately, the way the banks have dealt with people's homes- and by extension, their very livelihoods- is no laughing matter. Hundreds of thousands of people have lost-and are still losing- their homes because they don't know how to fight against the banks, even when the banks themselves don't have a proper handle on the foreclosure cases they've been filing.

By John Voket, RISMedia Consumer Confidant

With the uptick in mortgage and loan fraud in recent years, we tapped the Federal Trade Commission and continue our look at the agency's list of red flags to help you stay safe from scam artists and fraudulent mortgage or loan purveyors.

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.

A retiree retained our law firm in mid-2012, he was over 2 years past due on his $900.00 mortgage payment to Selene Finance, and had already undergone several lifetimes' worth of trouble with various mortgage lenders. Our lawyers were able to save his home and he is enjoying his retirement in peace.

This homeowner had experienced a laundry list of problems with his subprime mortgage; his mortgage had been transferred between several different banks and servicers since 2006. One of the mortgage companies attempted to foreclose in 2009, but it was delayed because they didn't have the original mortgage paperwork. The homeowner had been served foreclosure just before he retained us.

If you are going through the foreclosure process, or if you are in danger of foreclosure, this can be a very daunting time. The whole process can be confusing and a bit intimidating. It is times like these that you need someone on your side who will really fight for you. The current housing crisis has spawned a number of “foreclosure specialists” who will offer a free foreclosure consultation but little else. 

They have great sales pitches and promise to keep you in your home, but once you sign on the dotted line and hand over your hard-earned money, not much else happens. Most of these companies seem more adept at marketing their services than keeping people in their homes.