Foreclosure and Loan Modification Blog

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. 

Chances are, there are real vampires in your neighborhood right now, and no silver bullet can stop them.

Vampire foreclosures are a real phenomenon that is sweeping the nation. The term was coined by housing statistics provider RealtyTrac to describe homes that are being lived in by the original homeowners, but have been seized by a bank. According to RealtyTrac, 250,000, or nearly half of all bank-owned homes fall within this category, and this number won't be falling anytime soon, although these homes will eventually have to hit the market.

Zombies and Vampires Are Everywhere 

If you're familiar with housing lingo, you may be wondering if these vampire foreclosures are the same thing as "zombie" foreclosures. They aren't. Zombie foreclosures are foreclosures in which the homeowner abandons the home after a foreclosure sale date has been set, only to find out that the house never was sold or the title was never transferred over. This means that fees such as homeowners association fees, maintenance fees, and property taxes are still piling up on the property, which eventually wrecks the original homeowners' credit. There are tons of zombie foreclosures too: all in all, vampire and zombie foreclosures make up about 67 percent of all foreclosures.

Sunday was a perfect day to spend at Calder Race Course.  Breezy, sunny and a very comfortable 79 degrees. The best part was Amerihope Alliance Legal Services had the opportunity to sponsor a race for the SPCA horse rescue. Our law firm sponsored the 5th race and although none of us bet on the winning horse, Notalotatrouble, we all enjoyed the day and had lots of laughs.

Even Dracula would be embarrassed by the bloodthirst of some attorneys for people's money. Oftentimes these lawyers put money before people, and lives can be destroyed or seriously altered in this process. There are ways to avoid becoming a victim of their thirst, and to make sure that the foreclosure defense attorney of your choice is out for the bank's blood, not yours.

Hire the Right Person for the Job

If your house was flooded, you wouldn't call an electrician. If you had cataracts, you wouldn't call your general practitioner. It's a mystery why so many people hire lawyers who don't specialize in foreclosure defense to defend their homes from foreclosure. While many bloodthirsty "general practitioner" attorneys would have you believe that they have what it takes to save your home from foreclosure, foreclosure defense takes a specialist who is not only experienced in the art of foreclosure defense, but is actively working on current foreclosure defense cases. Don't worry, although the word "specialist" usually brings to mind expensive costs, that is not necessarily the case with these attorneys. Many foreclosure defense attorneys are sensitive to the needs of people in foreclosure, and have alternative fee structures that are designed to help those who are in financial trouble. Some foreclosure defense attorneys even offer loan modification as an ancillary service, which will help concerned homeowners kill two birds with one stone.

No Outcome Is Guaranteed

If a lawyer guarantees a "win" or a certain result on a case, then RUN! Bloodthirsty attorneys will often do this to goad unsuspecting people into signing up. The truth is that foreclosure defense is an involved process that involves plenty of negotiation with the bank's lawyers; no result is guaranteed. The only thing an attorney should guarantee is that they will do their utmost to save you and your home from the ravages of foreclosure.

The only certainty in life is uncertainty. Even in the face of uncertainty, everyone wants to be certain that they'll have their slice of the American Pie, which usually equates to a mortgage. At the peak of the housing market bubble, people were simply being approved for more American pie than their stomach or wallet could afford. The end result has been a staggering number of foreclosures.