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Foreclosure and Loan Modification Blog

Free Foreclosure Defense from Legal Aid

Finding an attorney to assist you with your foreclosure can be a daunting and expensive task. It's important to be aware of all of your options when you are challenged with a notice of foreclosure.

You can proceed pro se, but a better alternative is to seek free legal help. Many states have free legal aid services in every county that will find an attorney to work on your foreclosure case for free. Your eligibility for these services depends on various factors such as: residency, type of residence being foreclosed on, and your family or individual income. Depending on your case, legal aid services can offer any kind of help, from the filling out of court forms all the way to representing your case in court.

Who are Fannie Mae and Freddie Mac?

 

Defining Fannie Mae and Freddie Mac is not a matter of “who”, but a matter of “what”. Fannie Mae is a nickname for the Federal National Mortgage Association (FNMA). Freddie Mac is a nickname for the Federal Home Loan Mortgage Corporation (FHLMC). Both the FNMA and the FHLMC are home mortgage companies that were created by U.S. Congress. They do not originate or service mortgages, instead they buy and guarantee mortgages from the secondary mortgage market. The secondary mortgage market is where home loans and mortgage servicing rights are bought and sold between lenders and investors. This is great for homeowners because the secondary mortgage market creates competition in the mortgage industry and is responsible for encouraging lower interest rates.

3 Dirty Secrets About Loan Modifications Your Bank Doesn't Want You to Know

A loan modification can allow you to keep your home and avoid foreclosure after falling behind on your mortgage, but it's not necessarily all roses. In fact, there are some downsides to loan mods that your lender may not go out of their way tell you about.

If you don't know, a loan modification is a permanent change to one or more of the terms of your mortgage, such as the term, interest rate, and monthly payment.

A loan modification is often the only hope many homeowners have to keep their home following a default. They can be great, however if you need one, you should be aware of the following: 

Why It is Better to Hire an Attorney Than Proceeding 'Pro Se'

When you are served with foreclosure documents it can be devastating. Given the current situation, you are faced with the possibility of losing your home during, what appears to be, a never-ending COVID-19 pandemic.

This foreclosure also didn't take place because you have tons of disposable income laying around. So now you have to decide how you are going to save your home. The idea of hiring an attorney in the wake of being served with foreclosure documents seems impossible: if you didn't even have enough money to pay your mortgage, how can you think about hiring a lawyer? So now you're considering representing yourself in court to save your house and to save the attorneys' fees.

🏆🏆Our Awards for Results and Customer Service🏆🏆

Amerihope Alliance Legal Services, which focuses on providing foreclosure defense and loan modification assistance, is proud to have accepted numerous awards for providing excellent service to our clients over the last 12 years.

COVID-19 Foreclosure and Eviction Procedures

This article was last updated July 10, 2020 at 10:45 a.m.

Federal Foreclosure Moratoriums

Federal laws now state that Fannie Mae, Freddie Mac and FHA have been directed to suspend foreclosures and evictions due to the COVID-19 emergency. What does this mean? Any person with an Enterprise-backed single-family mortgage will not be evicted or foreclosed on before August 31st. This does not mean that your mortgage payments are forgiven for the next 2 months; you must still pay the money, the due dates have just been suspended. You will not be charged a fee for taking advantage of this forbearance. Also, as per the Federal CARES Act, your mortgage servicer is not allowed to ask you to pay a lump sum payment at the end of the forbearance period.

If you don’t know whether your loan is backed by Fannie Mae or Freddie Mac, you can verify it below.

Should You Make Mortgage Escrow Payments During a Covid19 Forbearance?

Your mortgage payment is usually a PITI payment. PITI stands for Principal, Interest, Taxes, and Insurance. When you make your payments each month, the "TI," or tax and insurance portions, are saved in an escrow account.

Coronavirus Q&A: Should You Make Your Mortgage Payments?

Here are just a few of the things I overheard last week:

  • "Wells Fargo gave me a 3 month forbearance, I don't need to make any payments."
  • "If they can't foreclose, why should I make my mortgage payments?"
  • "Mr. Cooper is letting me skip three mortgage payments, I ordered new patio furniture."

How would you respond to each of these? Let's take a look.

Successful Loan Modification Roundup Week of 5/15/20

Mr. Cooper Loan Modification

We received a modification for our client's mortgage with Mr. Cooper. They were 10 months behind, and in an active foreclosure case. This new modification lowers their mortgage payments from $803.82 per month to $743.64.

Do you have a Mr. Cooper mortgage that's past due? See some of our other Mr. Cooper case results here.

Coronavirus and Your Mortgage: Should You Accept a Forbearance?

Only if you have to.

Our attorneys' COVID-19 advice:

  • If you can afford to keep paying your mortgage during a hardship caused by Coronavirus, keep paying your mortgage.
  • If you cannot afford to make your mortgage payments, our lawyers want to do everything possible to help you understand your options and be protected from your bank's misrepresentations.

Q: Why?

A: Because in our experience, most mortgage "disaster relief" becomes a nightmare.

About this Blog

Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

Click to Read Our Super Loan Mod Success Stories

Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

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