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Foreclosure and Loan Modification Blog

Moving Out After Foreclosure

As the saying goes, you win some and you lose some. In the case of a foreclosure lawsuit, if the homeowner “loses” the bank gets to keep the house. And when the bank keeps the house, the homeowner gets booted out. The bank, or new owner, must give homeowners notice before eviction can take place. Even so, the homeowner bears the moving expenses. These expenses can be difficult to cover, especially in the wake of the financial hardship that led to foreclosure.

Are there any options for homeowners in this situation?

Is There Such Thing as a Free House?

The short answer is: not really.

It is highly unlikely that your foreclosure lawsuit will end in you getting your house for free. The only way this could happen, is through multiple oversights on the bank's part. Your lender would have to neglect to file a foreclosure action after you default on your payments of a matured loan AND they would have to neglect filing that action for several years. Each state has its own Statute of Limitations which determines how long the bank has to proceed with the foreclosure of your home.

What Can You Do If Your Mortgage Servicer Makes a Mistake?

Your mortgage servicer is not perfect, and sometimes they make mistakes just like everyone else. It is important to review all of your documents and communications with your servicer to check for mistakes. If something doesn't look right, it may not be. You should alert your mortgage servicer immediately if you think your account may be reporting incorrectly. Here are some of the common mortgage servicer mistakes to look out for:

COVID-19 Mortgage Forbearance Problems

The government has made it very easy for homeowners to get a forbearance on their mortgage during the pandemic. This has been a life line for many homeowners who have been affected financially by COVID-19. In this time of crisis, all a borrower has to do is pick up the phone and call their mortgage servicer and ask for payment relief. But how are homeowners going to pay the forbearance back? Are homeowners really being protected from delinquent marks and credit consequences?

Why Should I Hire a Foreclosure Defense Attorney?

Approximately 250,000 families enter into foreclosure every 3 months due to delinquent home loan payments or delinquent property taxes. Each of these homeowners has one thing in common: they have to make the decision of whether or not to fight for their home. However, if you want to fight the foreclosure and keep your home, it's time to find a foreclosure defense attorney. Here are some reasons why:

Are You Really a Victim of Bad Lending?

The process of obtaining a mortgage for your home can be very confusing. There are many parties involved in your mortgage and it can be easy to become overwhelmed by all of the new information. Taking out a mortgage is not as simple as just paying the price of the home over a certain period of time. There is interest factored into your payment along with principal, tax and insurance. When your house gets foreclosed it's easy to throw your hands in the air and say, “It's not my fault, I must be a victim of predatory lending!”. However, this is not always a reasonable conclusion. Here are the signs to look for in order to figure out if you are truly a victim of bad lending.

How are Deficiency Judgments Collected?

You may think that once the awful foreclosure process is over you will not hear from your lender ever again. However, if there is a deficiency judgment form the foreclosure sale, this may not be the case. The bank can come after you if your home does not sell for the full value of the debt owed. This is called a deficiency judgment. How exactly can the bank collect this judgment? Read on to find out how.

COVID-19 Foreclosure Statistics

COVID-19 has put the world through the ringer lately, and homeowners have not been an exception.
Though the government has tried to help out, only so much can be done when unemployment is increasing and businesses are closing.

Over 40 million people have filed for unemployment. Even before the pandemic about 10-15% of homeowners reported to being “housing insecure”, meaning that homeowners were worried about their ability to make payments. In April 2020, 1 in 3 Americans did not pay rent, and even though evictions have been halted, there are still people being evicted!

A Guide to Fast-Track Foreclosure Processes

An expedited foreclosure, also known as a fast-track foreclosure, is an action pursued by the lender of the mortgage which allows the lender to foreclose on a home more quickly than the typical foreclosure process would allow. The lender files a motion to expedite the foreclosure with the courts. The motion for an expedited foreclosure is also served to the homeowner. This motion is only granted to the lender if the lender can show that the home has been abandoned and may be at risk of harm.

You can also receive a motion for expedited foreclosure when you are still living in the home. If this should happen to you, it is very important that you meet with a foreclosure defense attorney to review the documents. In most cases, you will want to hire a lawyer to make sure you follow all of the instructions and respond and object to the motion. This means you may have to submit evidence and attend a court hearing in order for the judge to decide whether or not you have abandoned the home.

What Happens When My COVID19 Mortgage Forbearance is Over?

If you have secured a COVID-19 mortgage forbearance that works for you and your family this can be a great help. However, it is important to discuss with your mortgage servicer how they will be handling your past due payments at the end of the forbearance. 30 days before the forbearance ends you should assess your situation with your mortgage servicer to determine your next steps. Some servicers are requiring borrowers to make one large balloon payment when the forbearance ends, which is the worst case scenario for many homeowners. Other options are:

  • reinstatement
  • repayment plan
  • payment deferral
  • loan modification
  • refinancing

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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