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Foreclosure and Loan Modification Blog

How to Contest a Judicial Foreclosure Lawsuit

If you fall behind on your mortgage, and your home is in a judicial foreclosure state, you lender must sue you in a civil foreclosure lawsuit to take your home. While being sued may sound scary, it's actually better for your in nonjudicial foreclosure states because you have more opportunities to contest foreclosure. And you want as many opportunities as possible.

But opportunities must be seized! Whether you want to keep your home by getting a loan modification, or you just want to avoid foreclosure for as long as possible so you can save money before giving up your home, you should seize the opportunities available to you by contesting the foreclosure lawsuit against you.

Wells Fargo Wrongly Denies Hundreds of Homeowners Loan Modifications

Wells Fargo recently revealed that they wrongly denied or failed to offer 625 homeowners mortgage loan modifications due to an error with their underwriting software. The company says that about 400 of those customers lost their homes to foreclosure.

The error affected homeowners who were in foreclosure between April 2010 and October 2015. Now, nearly three years after correcting it, the country's fourth-largest bank has disclosed the error.

“We’re very sorry that this error occurred and are providing remediation to the approximately 625 customers who may have been impacted,” a spokesperson for the company said in a statement.

Wells Fargo says that it has set aside $8 million for customers affected by the issue. That's just $12,800 for each customer affected. Pitiful.

Did You Get A Forbearance Or Deferment After Hurricane Irma?

If you accepted your mortgage lender's offer to suspend your house payments so you could get back on your feet after a hurricane, you may have found that their help actually put you at risk of foreclosure. Hurricane Irma, as well as Harvey and Maria, caused damage that led some homeowners to wind up in that situation.

Many homeowners accepted their lender's offer without knowing exactly what kind of help they were getting and what the consequences of that help would be. There are also cases of the bank saying one thing and doing another.

To have our law firm review your Hurricane Hardship [Request Your Review Here]

Let's take a look at two of the main ways mortgage payments can be suspended and repaid following a disaster:

Forbearance

A forbearance is when a lender temporarily suspends your payments so you can avoid falling behind on your loan for a period of time until your hardship is over. After it's over, all the missed payments typically have to be paid back in one lump sum.

It's great to have your bank's permission to not make some payments if you have an emergency and need to spend your money on other things. But, if your money is tight enough to need a forbearance, how are you going to afford to pay back 3, 6, or 12 missed payments in one fell swoop? That's why a forbearance is so dangerous. If you're at the end of your forbearance period and can't pay the money back and the bank won't give you a repayment plan, you could end up in foreclosure.

We Helped Our Suntrust Client Get More Than $12k After Foreclosure!

Amerihope Alliance Legal Services recently helped a client get $12,842.42 in surplus funds after his property was sold in a foreclosure auction. To protect his privacy I'll call this client Mr. Sebben.

Mr. Sebben's mortgage problems came about because he wasn't able to sell his Broward County, Florida home before moving out of state for work. Unable to pay for housing in two states, he stopped paying the mortgage on his vacant Florida home and his lender, Suntrust, started foreclosure on it.

Mr. Sebben realized that he needed professional help, and so he retained our firm in 2016 to help him stay a bit longer in the property and deal with the foreclosure case.

SLS Tries To Foreclose On Widow, Loan Modification Saves Her Home

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners. Here is one of their stories.

A recent client of our law firm, who I'll call Ms. Garcia to protect her privacy, nearly lost her home in Hudson County, New Jersey after she fell behind on mortgage payments to SLS following the death of her husband.

In June of 2015, Ms. Garcia was served a with a foreclosure summons and complaint, which meant that she was being sued and was the defendant in a civil lawsuit. This is the way it works in states with a judicial foreclosure process. The plaintiff (the party suing) was HSBC.

By June of 2016, an order of summary judgment had been entered, which meant that the lender could request a Writ of Execution, and a sale date to auction off her home at anytime.

Our Client Was 98 Months Past Due with Ditech and We Still Got Him a Loan Modification!

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners, here is one of their stories.

Being really, really, really far behind on your mortgage doesn't necessarily mean that you can't get a loan modification and keep your home. A recent client of our firm is a good example of this. To protect his privacy, I'll call him Mr. Shroff.

Mr. Shroff lives in a nice home, currently valued at about $1 million, in Hilsborough County, FL with his wife and son. He is self-employed. A downturn in his business caused him to fall behind on his mortgage during the recession in 2009.

Eventually Mr. Shroff's financial problems cleared up and he was able to make payments again, but by then, his mortgage servicer, Ditech, wouldn't let him make payments. They wanted him to pay all of the missed payments plus fees, which ended up being an astounding $191,140.06. He didn't have that much cash, so he stayed in default.

Avoid Judicial Default By Answering Foreclosure Complaint

If you miss mortgage payments, or pay less than what is required, then you're in default on your mortgage loan. Your lender will at some point send you a notice of default letter notifying you that by not paying your mortgage, you're in violation of the terms of the promissory note that you signed and are at risk of losing your home to foreclosure.

If you don't work things out by reinstating your loan (paying the entire amount you're behind), agreeing to a repayment plan, or getting a loan modification, then the foreclosure process will continue.

Further along in the foreclosure process there's another type of default that can happen called a judicial default or clerk's default. A judicial default is a “binding judgment in favor of either party based on some failure to take action by the other party.”

Mistake By Loan Servicer Drives IL Homeowner Into Foreclosure

Normally people fall into foreclosure because they don't have enough money to pay their mortgage. But sometimes it's a mistake from the mortgage servicer, not any fault of the borrower, that puts someone into foreclosure. That's the case for a recent client of our firm, who I'll call Ms. Craig to protect her privacy.

Ms. Craig is a school teacher who has owned a home near Chicago, Illinois since 2002. For nearly a decade and a half things went pretty smoothly with her home and finances.

Then in 2016, Ms. Craig filed for Chapter 7 bankruptcy to deal with some debt that was not related to her mortgage. Her home was not included in the bankruptcy and she continued to make her mortgage payments during bankruptcy.

Mortgage Servicer Changed

Also in 2016, the servicing rights to Ms. Craig's mortgage were transferred from Loan Care to Freedom Mortgage. It's a servicer's right to sell the servicing rights to another company if they wish, and the borrower has no say in it.

Servicing is supposed to continue as normal during and after the transfer, but that's not what happened in Ms. Craig's case.

Should You Trade Stocks or Bitcoin to Make Money and Avoid Foreclosure?

If you're facing foreclosure, and only have a few thousand dollars to your name, is gambling that money by trading stocks or investing in cryptocurrencies like Bitcoin your ticket to big earnings and saving your home? No. There are smarter ways to invest and avoid foreclosure.

Dream Pushers

There is a huge industry that sells the dream that anyone can make a bunch of money speculating in stocks and securities. They make it seem like all the cool people are doing it, and they're getting rich. Don't you want to be cool and rich?

Discount brokerages like Scottrade, TD Ameritrade, Etrade, and Robinhood, as well companies providing information, like CNBC and countless newsletters and websites, all market the idea that it's possible for an average Joe with no experience to earn more money trading stocks than with other investments

What Is Final Judgment of Foreclosure, and How Can You Avoid It?

A final judgment of foreclosure is an order in certain states that a plaintiff/bank gets from the court, which allows them to sell a defendant's home for failure to pay the mortgage.

Final judgment of foreclosure is one of the last dominoes to fall before the foreclosure sale, and a big loss for a homeowner who wants to keep their home.

Final judgment can be in rem (against the house), in personam (against the homeowner), or both. If the lender believes there is a deficiency on the in rem judgment because the home won't sell for enough to cover all the money they're owed, they can seek an in personam judgment against the homeowner.

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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