Category Archives: Foreclosure Defense

How Homeowners Can Use Available Options to Save their Homes

10 Tuesday Jun 2014

Posted by in Bankruptcy, Federal Court, Foreclosure Crisis, Foreclosure Defense, Judicial States, Loan Modification, MERS, Non-Judicial States, Pro Se Litigation, State Court, Your Legal Rights

≈ Leave a comment

Each state has its own foreclosure laws covering the notices the lender must post publicly and/or with the homeowner, the homeowner’s options for bringing the loan current and avoiding foreclosure, and the process for selling the property. In 22 states – including Florida, Illinois and New York – judicial foreclosure is the norm, meaning the lender must go through the courts to get permission to foreclose by proving the borrower is delinquent.

If the foreclosure is approved, the local sheriff auctions the property to the highest bidder to try to recoup what the bank is owed, or the bank becomes the owner and sells the property through the traditional route to recoup its loss. The entire judicial foreclosure process, from the borrower’s first missed payment through the lender’s sale of the home, usually takes 480 to 700 days, according to the Mortgage Bankers Association of America.

The other 28 states – including Arizona, California, Georgia and Texas – primarily use non-judicial foreclosure, also called power of sale, which tends to be faster and does not go through the courts unless the homeowner sues the lender. In some cases, to avoid foreclosing on a home, lenders will make adjustments to the borrower’s repayment schedule so that he/she can afford the payments and thus retain ownership. This situation is known as a special forbearance or mortgage modification.

What Options are available for Homeowners?

1.   Reach out to the lender and explain your situation.

If you think you’ll be at risk for missing a monthly payment or possibly several, putting you at risk of foreclosure, reach out to your lender immediately. Don’t sweep the problem under the rug. As weird as it may sound, it’s in the lender’s best interest not to foreclose on you, as it costs close to $30,000 by some estimatesfor the lender to foreclose. That’s time, hassle, and money down the drain for the lender; they want to avoid foreclosure if at all possible. Talking to your lender will start a dialogue in which both parties can talk about possible solutions before foreclosure becomes the only option.

– Let the lender know if your problems are temporary. If you’ve incurred unexpected medical bills or have been laid off, for example, the lender is more likely to give you a reprieve until you’ve got your head above water. They might ask you to make a payment in one lump sum, or even freeze your monthly payments if you’re lucky.

2.   Try to modify the loan in your dialogue with the lender.

As far as the lender is concerned, 50% of something is better than 100% of nothing. That means they’ll often be willing to modify the terms of your loan to get you paying something, even if it’s not the original monthly amount.

  • Try to extend the amortization period. Amortization period is a fancy word for the life of the loan. If you make the life of the loan longer, your monthly payment will go down.
  • Change the interest rate. The interest rate of your loan is determined by your credit rating, as well as other factors. Suffice it to know that it can be lowered in order to make monthly payments more manageable.
  • Switch from an adjustable rate to a fixed rate. Adjustable rate mortgages (ARMs) usually start off with a pretty low interest rate and then shoot up over the life of the loan. They look nice to start off with but they actually end up being pretty expensive. Switching from an ARM to a fixed rate — where the interest rate stays the same for each monthly payment — can save you a lot of money as well as make the monthly payment much more manageable.

3.   Ask for forbearance.

Asking for forbearance is a temporary way to stall the foreclosure proceeding, but it works in a lot of instances. Forbearance allows you to either pay partial payments or no mortgage payments for a specified time agreed upon by you and the lender. You must, however, eventually pay the full amount forbore. You may agree to one lump sum payment to catch up on your mortgage or make extra payments in addition to your monthly mortgage payments.

4.   Consider hiring a housing counselor.

A housing counselor will work on your behalf to get your finances back on track and find a compromise between you and the lender so that foreclosure can be avoided. A good quality counselor will usually be a good investment, especially if they help you hold onto your house.

Be weary of those housing counselors who “guarantee” a stall or stop in the foreclosure process. These counselors often charge exorbitant sums (think thousands of dollars) and sometimes only stall the proceedings, leaving you no better off than you were to begin with. Visit the Department of Housing and Urban Development’s website to see a full list of approved housing counselors.

5.  If you do decide to fight the foreclosure, file a written answer to the foreclosure complaint.

Some of those well written response and other pleadings can be found at http://www.fightforeclosure.net foreclosure defense package. Filing an answer and attending the hearing stops the lender or county from obtaining a default judgment against you. Research the defenses to foreclosure — these are the reasons why the mortgage lender or county shouldn’t win, and they are listed below. A more comprehensive Guide to the fight and well structured foreclosure defense tools can be found in the package.

  • Select the defense to foreclosure that fits your circumstances.
  • Write an answer, including your defense to the foreclosure.
  • Submit the written answer to the county court where the lender or municipality filed the foreclosure complaint.

 

Foreclosure Defense Package at http://www.fightforeclosure.net will help Homeowners in the following ways.

Homeowners should consider the following options to either retain their homes or secure the equity.

1. Make the lender “produce the note.”

When you sign a mortgage document, there’s a promissory note that lenders are supposed to keep that details all the specifics of the loan agreement. During the housing boom, unscrupulous lenders underwrote so many loan documents and filed them away or sold them off, content simply to know they had made money. Now, many of the documents cannot be found, partly because they were sent off when the mortgage was securitized. The short story is this: if the lender cannot find the note, foreclosure can effectively be postponed, if not stopped completely.

– Making the lender “produce the note” can be effective, especially if the lender used less-than-savory means of getting you to agree to the loan, but it’s not a long term strategy for success. You can buy a lot of time if the lender can’t produce the note, but in most cases you won’t be able to stop foreclosure once the note is found.

2.  Consider selling the house before the house is auctioned off.

If you can manage to sell the house before the foreclosure of your home actually clears, you can keep whatever equity you still have invested in the home. It may be hard to sell your home on such a quick turnaround, but it’s definitely possible, especially with the market heating up.

3.  Question the chain of title.

Homeowners can effectively question the chain of title to their properties using the information at http://www.fightforeclosure.net

When a property is about to be foreclosed on, a database attempts to make sure that the ownership of the mortgage — from the time you signed the papers up to the present moment — is clear and unambiguous. This way, the courts can recognize the legality of the foreclosure. Because so many mortgages were bundled into complex securities and traded on the marketplace, the chain of title is often not clear and unambiguous. If you can successfully question the database that keeps track of the chain of title, you may be able to keep your home.

– The database that keeps of the chain of title is called the Mortgage Electronic Registration System, or MERS. It was established specifically in order to track the chain of title, a tall task given the rate at which many mortgages were being securitized and then traded. But some courts are skeptical of MERS’s legitimacy. One popular foreclosure defense rests on forcing the lender to independently verify the chain of title without using MERS.

– In order to save your home from foreclosure using the chain of title defense, you’re probably going to need a lawyer. This may be a bit more expensive than some of the other options, but it’s a defense that’s quickly gaining traction.

4.  Negotiate a deed in lieu of foreclosure. If you have little other option, you can always ask the lender’s loss mitigation department if they’re willing to accept a deed in lieu of foreclosure. This is a document where you legally agree to transfer ownership of the deed over to the lender in exchange for the ability to walk away owing nothing to the lender. If you don’t think you’ll be able to hold onto your house, this option can be especially attractive if you owe a significant amount on monthly payments in arrears.

To Effectively Negotiate a Deed in Lieu of Foreclosure, homeowners needs to be aware of the following.

A deed in lieu of foreclosure is a foreclosure prevention process that can be used when you are upside down on your mortgage and cannot afford to keep your home. You simply sign a deed transferring ownership of your home back to your mortgage lender in exchange for walking away owing them nothing on your mortgage balance. The deed in lieu is a mechanism used to avoid foreclosure that saves you and your lender the time and costs of having to go through a formal foreclosure process. It benefits you and your lender by saving on court and legal fees. It can also save your credit if negotiated properly.

a. Call your lender’s loss mitigation department and tell them you are experiencing a financial hardship and can no longer afford to keep your home.

b. Ask if they will accept a deed in lieu of foreclosure.

c. Find out what other foreclosure prevention options you qualify for from your lender’s loss mitigation department and also by contacting a HUD Certified Counseling Agency or a real estate foreclosure defense attorney.

d. Download your lender’s deed in lieu of foreclosure forms, complete them and submit them to the lender with a hardship letter and any financial information they require.

e. Negotiate that the deed in lieu satisfies your mortgage balance and that the lender will not come after you later for a for the outstanding mortgage balance.

f. Request and negotiate with the lender that they report the transaction to the three credit bureaus as paid settlement or satisfied and ask them to remove any prior negative reporting from your credit report. Otherwise, they will report it as a foreclosure or deed in lieu of foreclosure, which stays on your credit for 7 years and lowers your credit score.

g. Sign the deed in lieu of foreclosure back over to the lender. Hand them the keys to your home and walk away owing nothing.

Bankruptcy as a last Option.

Bankruptcy is the process of eliminating some of all of your debts in exchange for either regular payments or a seizing of your property. Although it may not seem like an enviable option, it’s the smartest way out of an underwater mortgage for many homeowners. When you file for bankruptcy, the foreclosure proceedings can be stopped with an automatic stay.

  • Qualify for bankruptcy. In order to qualify, you have to complete a means test, pre-bankruptcy credit counseling, as well as acquire the correct paperwork such as tax documents.

1.  Decide between filing chapter 7 and chapter 13 bankruptcy.

There are essentially two different kinds of bankruptcy declarations, each with their own unique rules and specifications. As they relate to stopping a foreclosure, they are briefly described below:

– In chapter 7 bankruptcy, you ask to have most, if not all, or your debts discharged by the courts. In exchange for this discharge, the courts can take any property not exempt from collection, sell it, and distribute the proceeds to your creditors. With chapter 7, you won’t be able to keep your house, but you will be able to stall the foreclosure for at least a couple of months.

– In chapter 13 bankruptcy, you agree to a plan to pay back all or most of your debts over a certain period of time. The time you have to repay the debt, as well as the repayment plan itself, depends on how much you earn, as well as the types of debt you currently own. With chapter 13, you should be able to keep your home, especially if you think you’ll be able to make payments in the future. The repayment plan usually lasts three to five years.

2.  File your bankruptcy petition with your local U.S. Bankruptcy Court.

Meet with a lawyer and declare your bankruptcy. Start making payments. After a while, attend a meeting of the creditors. This is a meeting between you and a bankruptcy trustee. However, your creditors may also attend. This meeting will give you a better sense of where foreclosure proceedings are at.

With that said, homeowners should also be aware of What Not to do in Foreclosure

a.   Do not sign the title of the property over to another company.

Some companies lure desperate families into a trap by promising to get the mortgage current and then re-sign the mortgage back over to you. Yet this rarely happens. More often than not, the company pulls equity out of the home, lets foreclosure proceedings continue, and dumps the home like a bag of wet peanuts. Worst of all, there’s nothing you can do because the title of the property is no longer in your name.

b.   Do not seek counseling from a non-HUD approved organization.

Seeking counseling is an important tool for many homeowners fighting to keep control of their home. Yet many sharks take advantage of people by demanding steep up-front fees and interest rate hikes after the dust has settled. Be sure to vet any counseling service you use on HUD’s list of approved housing counselors.

c.   Do not avoid court documents or requests.

Although out of sight, out of mind may be a decent coping strategy for some of life’s problems, it’s generally not a good way to hang on to a house. Promptly honor any requests that come from either the court or lender, as failure to do so may result in hefty fees and even legal trouble.

When Homeowners good faith attempts to amicably work with the Bank in order to resolve the issue fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

How Homeowners in ‘Pro Se” Litigation Can Effectively Prepare Their Discovery Requests

02 Monday Jun 2014

Posted by in Discovery Strategies, Fed, Federal Court, Foreclosure Defense, Judicial States, Litigation Strategies, Non-Judicial States, Pro Se Litigation, State Court, Trial Strategies, Your Legal Rights

≈ Leave a comment

There are certain rules of Discovery every litigant must follow when in a lawsuit.

After a lawsuit is filed, each side is permitted to obtain information and documents from the other side. This process is referred to as discovery.

There are several methods of obtaining information – tools in the discovery tool belt. The methods covered in this book are those that are the least costly and easiest to employ: Interrogatories, Requests for Admissions, and Requests for the Production of Documents. Discovery enables you to get damaging information directly from the bank! Serving the lender with discovery. A defendant may usually commence discovery as soon as he or she has been served the complaint (the written document containing information about the lawsuit).

Sometimes, as is the case in federal court, there are mandatory disclosures that must be provided by each side without being asked. See Federal Civil Rule 26 for more information about mandatory disclosures if your foreclosure is in federal court.

Interrogatories are simply questions asked of the other party. For example, an interrogatory might say, “State the date and amount of each and every payment received by the plaintiff in payment of the mortgage or note since May 1, 2005.” They can be questions, or directed statements, such as this one is, telling the other side to provide specific written information you seek.

Usually, interrogatories are preceded by a list of definitions so the other side is clear on what you mean when you use a particular term. For example, in the suggested definitions following this chapter, “identify” has a very specific (and extensive) definition. These are usually used so the other side’s attorney can’t avoid answering the question based on a limited definition.

One of the most important things to remember about interrogatories is that they are generally limited in how many can be asked. In the Federal Rules of Civil Procedure, each party is limited to asking just 25 interrogatories, and they can only be directed to parties.

A party is someone or some organization who is suing or being sued in a lawsuit.

This means interrogatories can’t be served on the mortgage broker who took the borrower’s loan application unless he or she is first brought into the lawsuit as a party (accomplished by filing a third party complaint). Federal Rule 33 governs interrogatories in federal court. Look at your state’s rules for a heading called “Interrogatories.”

Many chapters will have a section that suggests some interrogatories based on that particular defense. This assumes you will be using the model interrogatory form, and adding in the suggested interrogatories as paragraphs where indicated.

Here are some general rules to follow with respect to interrogatories:

· Leave several spaces below each interrogatory for an answer.
· Some courts require the interrogatory form be provided on diskette or CD to the other party, so the other party can type in the answers and return it to you.
· You must mail a copy of your interrogatories to every other party in the lawsuit (everyone suing or being sued), even if the questions are only directed to the bank.
· You will usually need to mail a copy of the interrogatories to the court, to be filed with the case. (Read your state’s rule on interrogatories.)

Requests for Admissions.

Requests for admissions are simple statements that requires the other party to either admit or deny the true of the statement.

A request for admission to the lender might be, “Admit on May 5, 2006, plaintiff purchased the mortgage from ABC Corporation.”

The lender would then respond in writing with a simple “Admit” or “Deny.” If the lender objects to the request, it may state something similar to, “Plaintiff objects to this request for admission because….”

It may state it doesn’t have sufficient information to form a belief, or refuse to answer on other grounds.

The purpose of requests for admissions is that they narrow the scope of what is contested for trial. If the parties can admit that certain facts are true, then these facts do not generally need to be litigated later. These must be presented in a manner where the other side can either admit or deny each.

If you seek to ask questions with open ended responses, then using interrogatories or depositions might be more useful.

Depositions are beyond the scope of this book, but well-crafted interrogatories might get you the information you seek. In federal court,
like interrogatories, they can only be served on parties.

One of the most important facts to remember about requests for admissions is that in many states, failing to respond to requests within the time limit (30 days in federal court) is equivalent to admitting the statement’s truthfulness.

Be very careful if you are served with requests for admissions so your failure to respond doesn’t equate to admitting each!
Do not be late filing your responses, or you may find them deemed admitted.

Many chapters will have a section that suggests some requests based on that particular chapter. This assumes you will be using the model request for admission form, and adding in the suggested requests as paragraphs where indicated.

Here are some general rules to follow with respect to requests for admissions:

· Leave a couple of spaces below each for an answer.
· Some courts require the requests be provided on diskette or CD to the other party.
· You must mail a copy of your requests to every other party in the lawsuit (everyone suing or being sued), even if the questions are only directed to the bank. · You usually must mail a copy of the requests to the court, to be filed with the case.

Requests for the Production of Documents.

Requests for the production of documents or other tangibles (like records) are a right afforded to litigants during a lawsuit. You may ask the lender in a formal document to produce the original mortgage and note, as well as any other physical thing that relates to the lawsuit. Federal Rule 34 governs these requests.
It would be wise to get copy of the closing documents from the title company, lender, broker, real estate agent, and whoever else is involved in the transaction that may have copies.
You may also want obtain copy of the invoice and appraisal via subpoena to ensure the amount showing on the settlement statement is correct. If the party you want information from is not a party to the lawsuit, you may have to subpoena them for the information.

When you have been served with this type of discovery by the lender, you will not mail a packet of documents court (again, do not mail documents in response to this type of discovery request to the court), although the court may want you to file a Notice that you did, in fact, respond. You will only send the packet of documents to the party requesting that you produce documents.

Getting served with discovery.

Be very mindful that failing to respond to discovery within the time period prescribed by the rules can get you into deep trouble. Answering untruthfully can also get a party into trouble, opening up them to sanctions or attorneys fees and costs for trying to avoid a bona fide question.

Discovery Cut-Off.

In some areas, the court may set a date as the cut-off for discovery. That means you must complete your discovery requests to other parties by this deadline. If the court sets a deadline, it will be included within the cover page of the lawsuit, or a notice will be mailed to you directly.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

How Homeowners Can Effectively Handle Discovery in Foreclosures

02 Monday Jun 2014

Posted by in Discovery Strategies, Federal Court, Foreclosure Defense, Judicial States, Litigation Strategies, Non-Judicial States, State Court, Trial Strategies, Your Legal Rights

≈ Leave a comment

This post details an experience of a Florida foreclosure defense Attorney challenging the big banks to proof their case. Homeowners and “Pro Se” litigants will learn from this experience when implementing strategies to win their foreclosure lawsuits.

Here it goes:

Many people who don’t work in the legal field and/or are unfamiliar with normal court procedures are surprised to see how a lawsuit actually works. It’s not like you see on TV, where a dispute arises and the parties are immediately thrust into a trial. In real life, all litigants have the right to obtain discovery from the other side. This means, in non-lawyer terms, that both sides have the right to require his/her opponent, prior to trial, to provide documents pertinent to the case, to answer interrogatories, and submit to depositions. It’s not like the old TV shows like Matlock, where a cunning lawyer could bring in a surprise witness during trial, win the case, and leave his opponent scratching his head, wondering what happened. Both sides have to disclose their witnesses, indicate what those witnesses are going to testify, and provide pertinent documents, usually long before trial ever begins. The process of obtaining documents from your opponent in a court case, identifying witnesses, and learning what those witnesses will testify is called discovery.

Florida law, like that in most states, has broad discovery rules. Not only must all parties disclose anything relevant to that case, but anything “likely to lead to the discovery of admissible evidence” should also be provided. These broad discovery rules ensure both sides can litigate fairly, preventing a ”trial by sagotage.” In some ways, trials in real life ares like a game of cards, except the participants all have their cards laid on the table, face up.

With this backdrop in place, the interesting question becomes – Do the same rules apply in foreclosure cases? Do homeowners get the same, broad rights to discovery (that every other litigant in every other case enjoys)?

According to the letter of the law, there is no reason to provide homeowners fewer rights in the discovery process than any other litigant. Foreclosure cases are litigated in court (in Florida, anyway), so if homeowners want to ask banks to produce documents, identify witnesses, ascertain what those witnesses will say, answer interrogatories, or submit to depositions, homeowners are perfectly entitled to do so.

In reality, though, it often doesn’t work this way. Banks and their lawyers hate providing discovery in foreclosure cases. They avoid it like the plague. Unfortunately, I’ve witnessed this dynamic many times in foreclosure cases, when bank lawyers respond to my discovery by saying:

You don’t need no stinkin’ discovery, Stopa. I have the original Note, with an endorsement, and that’s all that matters.

Perhaps I’m exaggerating a little, but not much. In my experience, it’s quite common for banks to respond to my discovery requests by saying “we have the Note, we have the mortgage, here is a life of loan history, and a corporate representative will testify at trial. That’s all we’re giving you.”

Obviously, I very much disagree with the banks’ approach in this regard, as I think my clients’ discovery rights are much broader than this. To illustrate, take another look at one of my favorite cases, McLean v. J.P. Morgan Chase Bank, N.A., 37 Fla. L. Weekly D 334 (Fla. 4th DCA 2012). In that case, the Fourth District reversed a summary judgment in favor of a bank because the bank did not prove it had standing at the inception of the case. As the court explained in detail, if a bank is relying on an endorsement to convey standing, it has to prove the endorsement was entered prior to the lawsuit being filed.

If you’ve ever looked at an endorsement on a Note in a mortgage foreclosure case, you know that such endorsements are virtually never dated. It’s just a signature on a piece of paper – no date. As such, it’s essentially impossible for anyone – a homeowner, a judge, or the lawyers for either side – to know when that endorsement was executed. So how is anyone supposed to know whether that endorsement was entered before the lawsuit was filed? In my view, that is a classic example of the type of thing a homeowner can inquire about in discovery. Send the bank an interrogatory and ask when that endorsement was entered. Better yet, send the bank an interrogatory like this:

Interrogatory: The Note you filed in this case on March 23, 2012 contains an endorsement by Mickey Mouse, as Assistant Secretary of Wells Fargo Bank, N.A. Please specify the date of this endorsement as well as the name, address, telephone number, job title, and job description of Mr. Mouse, to include his relationship with Wells Fargo Bank, N.A. on the date of the endorsement.

Of course, this is just one example of the many facts about which homeowners can inquire during the discovery process of a foreclosure case. To illustrate, I had a hearing this week that played out exactly like I described above. I served a Request for Production and First Set of Interrogatories on a bank in a foreclosure case. The bank’s lawyers responded with objections to nearly every request, refusing to disclose much of anything. So I filed a Motion to Compel compliance with these discovery requests. At the hearing, the judge granted that motion, compelling sufficient answers to 17 interrogatories (similar to the one above, but on a broad range of topics, to include forcing the bank to identify all of its witnesses and to provide information about any insurance payments on the subject note/mortgage). In fact, the judge agreed with every one of my requests except for one, finding this interrogatory to be irrelevant:
Interrogatory: Have you ever received any bailout money of any kind from the United States government, either pursuant to TARP or otherwise? If so, please identify the amount of money you received and how and when the money was spent/used/allocated. In your answer, please be sure to disclose the extent to which any such funds were used to provide loans of homeowners in Volusia County, Florida.

My argument for requiring the bank to answer this interrogatory went something like this … Mortgage foreclosure cases are proceedings in equity. A claim for a deficiency is a claim sounding in equity. There is nothing equitable about a bank taking billions of dollars in taxpayer bailout money, including from my clients, which money was intended to avoid foreclosures and provide loan modifications, but for those banks to refuse such modifications. Worse yet, there is nothing equitable about banks getting this bailout, flooding the real estate market with foreclosed properties, driving down property values because of those foreclosures, and then recoup 100% of its alleged deficiency, which it created, despite having been bailed out.

Unfortunately, despite agreeing with me on everything else, the judge did not require an answer to that interrogatory, strongly suggesting (without saying) that he did not agree with the premise of my argument. Respectfully, that’s terribly disappointing. Do you seriously mean to tell me that a bank should get to collect billions in bailout money, not use that money for loan modifications, create a flood of foreclosures in the real estate market, cause prices to drop, create a deficiency, foreclose, collect 100% of the deficiency, and that a homeowner can’t argue “wait, you shouldn’t be able to do this?”

Even if you don’t agree with that argument, I certainly think I should at least be able to argue it. To present evidence to support it (under Florida’s broad discovery rules).

I hope everyone reading this will think long and hard about that issue. Think about the broad discovery rules. Think about how mortgage foreclosure cases are proceedings in equity. Is it really that unreasonable for homeowners to ask, in the face of a lawsuit for foreclosure and a deficiency, “where did all the TARP money go?”

More importantly, if you’re a Florida homeowner, make sure you realize the rights you enjoy during the discovery process. I didn’t win on that interrogatory, but I won on 17 others, and I assure you – forcing the banks to answer such questions will only help as you fight your foreclosure.

End Post!

========

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; among other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

What Homeowners in “Pro Se” Foreclosure Litigation Needs to Know About Perjury.

02 Monday Jun 2014

Posted by in Federal Court, Foreclosure Defense, Fraud, Judicial States, Litigation Strategies, Non-Judicial States, Pro Se Litigation, Scam Artists, State Court, Your Legal Rights

≈ Leave a comment

In foreclosure defense litigation across the Country, many large financial institutions and their well paid Attorneys routinely commits crime of perjury on a daily basis. Some of the way these entities perpetrate this crime, is by furnishing witnesses who made false statements under oath; or filling false affidavits and furnishing worthless pieces of forged documents in the forms of exhibits bearing false impressions; and of course, (getting Away with it), in their fraudulent attempts to illegally foreclose on properties they do not own.

In its most simple form, perjury is lying under oath. The crime of perjury is the willful swearing, either spoken or in writing, to tell the truth and then giving false information.

Perjury can occur even if the person has not been sworn to tell the truth, such as in a courtroom. Merely signing a document under penalty of perjury that contains false statements can be a crime. Signing an income tax return that contains false information is an act of perjury, for example.

In most jurisdictions, the false information has to be material to the issue or affect the outcome for perjury to be a chargeable crime. If the false statement directly affects the results of the case or causes a unjust decision to be made, the person can be charged with perjury.

Because the crime of perjury can cause a miscarriage of justice to occur, it is considered a very serious crime. Under U.S. federal law, for example, perjury is a felony punishable by up to five years in prison.

“I swear to tell the truth, the whole truth, and nothing but the truth” – a mantra recited dozens of times a week in TV shows and movies. It’s so familiar that its significance can be overlooked. But, when sworn in a court or other official proceeding, it makes everything said afterward either the truth or perjury.

Perjury, the crime of lying under oath, is a serious offense because it can derail the basic goal of the justice system—discovering the truth. Even the famous and the powerful have faced the consequences of perjury, which include prosecution (Barry Bonds), prison (Marion Jones), and impeachment (Bill Clinton).

Historically, perjury was defined as lying while testifying in court. The law now defines the crime to cover not just trials but also many other proceedings, including grand juries, family law court, bail hearings, Congressional committee hearings, and depositions in civil lawsuits. Sworn statements made to governmental agencies such as the Social Security Administration or in financial affidavits (such as loan applications) are also covered.

It’s also a criminal offense to cause another to commit perjury, called suborning perjury.

What Is Perjury?

A witness under oath commits perjury by making a statement in a court or other proceeding that the witness knows is not true. The statement must be “material” to the subject of the proceeding, meaning that it must have some relationship to the lawsuit, investigation, or inquiry of the proceeding. All parts of this definition are important, so let’s take a closer look at each:

 

  • Perjury only happens under oath. The witness must have vowed to tell the truth to someone who is authorized to administer the oath, such as a judge, notary public, or other official. And, the proceeding must be “competent,” that is, authorized by law. For example, a grand jury that has launched an investigation that is beyond its powers is not a competent proceeding.
  • Perjury requires a statement. Silence or a refusal to give a statement is not perjury (but may lead to other charges). In addition to testimony, a statement adopted in the proceeding, as when a witness authenticates a false writing while under oath, is also perjury.
  • Intent to mislead. The witness must know that the testimony is false and must give it with the intent to mislead the court.
  • Only false statements are perjury. False testimony that results from confusion, lapse of memory, or mistake is not perjury. Conflicts in testimony may be perjury if one of the conflicting statements is necessarily false (and prosecutors can prove perjury without proving which one is false).
  • Inconsistent statements can lead to perjury. A witness’s testimony is viewed as a whole. So, a witness who claimed he did not remember an event when questioned at one point in testimony, but who clearly recalled aspects of the event when asked later, may have committed perjury. (Inconsistency under oath is what led to Bill Clinton’s impeachment.) But, where a witness’s testimony is inconsistent in a way that is of no consequence in the proceeding, that is not perjury.
  • Statement made in court or other proceeding. False statements made outside of official proceedings are not perjury. For example, if a witness lies to a lawyer who is taking notes in order to draft an affidavit, the witness has not committed perjury (unless she later signs the affidavit under oath with the false statement in it). Sworn, written statements submitted to courts or government agencies are statements made in a proceeding and subject to perjury laws.
  • Only a “material” statement can be perjury. The false statement must be capable of influencing the proceeding – that is, it must have a relationship to the subject of the proceeding. This includes a false statement that would tend to mislead or hamper an investigation. This means that a lie, even under oath, about a subject that is not material to the proceeding is not perjury. For example, falsely bragging that “I never update my Facebook page at work,” while testifying in a case having nothing to do with social networking at work, would not be a likely candidate for a perjury charge.
  • A material statement that is superflouos to the outcome may still be perjury. Even where false testimony does not affect the outcome of a case, the lying witness may be prosecuted for perjury. For example, suppose an ex-cop is on trial for his involvement in a gambling operation. Several witnesses have testified to his involvement, but on the stand, he falsely denies any involvement. This denial would be a material statement, even though it arguably did not affect the jury’s finding of guilt (the jury had the other witnesses’ testimony to rely on).

Common Defenses to Perjury 

Here are some common defenses to perjury.

True statements

Remember, perjury is giving false testimony—saying or writing something that is not true. This means that true statements, even when made to intentionally mislead, are not perjury. For example, where a defendant in a mail fraud case testifies that he did not “send” the fraudulent document because he did not actually put the document in the mailbox himself, he has told the literal truth and has not committed perjury. In such a situation, the prosecutor has to ask further questions (such as, “did you direct someone to drop the document in the mailbox?”) in order to get the defendant to admit to participating in the fraud, or get the defendant to lie about participating.

Recanted or corrected statements

Sometimes, witnesses say or write something that they later recant. Whether their change of heart constitutes a legally recognized defense to a perjury charge depends on the law of the state where charges would be brought. If the case were to be brought in federal court, one of two results is possible, courtesy of the two federal laws that concern perjury:

  • A person charged under a broad perjury statute (18 U.S.C. §1621) won’t necessarily avoid prosecution even by recanting during the same proceedings where she committed the perjury, but the recantation can be taken into consideration to show that the person did not intend to mislead.
  • Someone may be able to avoid eventual prosecution by recanting or correcting the false statement, but must do so during the same proceeding in which it was made; and the false statement must not have “substantially affected” the proceedings. But this only works if the witness is charged under the second, narrower statute (18 U.S.C. §1623). However, by admitting to the prior false statement (in order to take it back), the witness may open herself up to prosecution under the broader statute described above (§1621)! Needless to say, a witness who must decide whether to recant a false statement needs the advice of an experienced attorney (see below).

The “perjury trap”

In some cases, the prosecutor will call a defendant solely because the prosecutor knows that he will likely lie under oath, committing perjury, and the prosecutor doesn’t need his testimony for any other purpose. In these cases, a defendant will claim that this has happened and the prosecutor will deny it. Whether or not a prosecutor has actually set this “perjury trap,” this is a hard defense to raise, for two reasons:

  • No materiality. For a perjury charge to stick, the lie must be material, as explained above. But where the perjury trap involves asking about something that doesn’t really matter, the lie won’t rise to the level of perjury. So the better course is to claim simply that there’s no materiality.
  • The prosecutor’s hopes that the witness will lie aren’t enough to defeat the charge. After all, hoping a witness will lie doesn’t make that witness do so. As long as the questions asked of the witness are related to the issue under investigation or raised in a lawsuit, the prosecutor is not setting a trap, even if the prosecutor harbors a hope that the witness will lie.

Defenses that aren’t

Some defenses that you might think will apply will not be available in a perjury prosecution in certain situations. They include:

  • Double jeopardy. This defense claims that the defendant is being tried twice, in the same jurisdiction (court), for the same offense. It doesn’t apply when a defendant is being tried for a crime, but then is charged later for perjuring himself during trial. For example, a defendant in a rape case who was acquitted based on DNA evidence but lied under oath about his alibi may still be prosecuted for perjury.
  • The limits of immunity. Prosecutors sometimes offer immunity from prosecution to witnesses who themselves are (or could be) subject to criminal charges, but who have important information that would support a case against another, more serious criminal defendant. For example, a low-level accomplice might be granted immunity so that he can testify against a crime syndicate’s boss. But false testimony given after a prosecutor has granted a witness immunity may still be prosecuted as perjury!

How is Perjury Punished?

A person convicted of perjury under federal law may face up to five years in prison and fines. The punishment for perjury under state law varies from state to state, but perjury is a felony and carries a possible prison sentence of at least one year, plus fines and probation. Penalties are increased in relation to how much the perjury interfered with the proceeding. When the perjurer was a witness in his own criminal trial, his sentence for the underlying conviction may also be increased, on the grounds that a lying defendant is one who has a bad character and is not likely to be rehabilitated quickly.

Judges can punish a perjurer who lied under oath to hide or assist a crime in a way that goes beyond the sentence for perjury. That defendant may also be charged as an accessory to the crime he was attempting to hide or assist, if that charge will carry a greater sentence. And a perjurer may even be charged as an accessory to a crime of which he is convicted, if he lied to conceal that crime.

There is no civil remedy for a criminal defendant wrongly convicted based on another’s perjury, nor for a party to a civil lawsuit who loses because of a witness’s perjury.

A person who commits perjury also may have violated other laws that do provide remedies.

Homeowners need to fight these crime of perjury that is routinely crippling our justice system.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

How Homeowners in Foreclosure Proceeding Can Effectively Rebuild their Credits After Short Sale

28 Wednesday May 2014

Posted by in Foreclosure Crisis, Foreclosure Defense, Judicial States, Non-Judicial States, Your Legal Rights

≈ Leave a comment

Homeowners in recent foreclosure proceeding who wish to move on with their lives needs to start by rebuilding their credit worthiness.

Have you experienced a short sale? How big of a hit did your credit score take? What steps did you take to help rebuild your credit?

In a short sale, the mortgage lender agrees to let a homeowner accept an offer for their home that’s less than the amount owed on the loan. The bank takes all the proceeds, but the seller walks away with the remaining debt forgiven.

Choosing to go that route will put a serious dent in your credit score, but it’s not a fiscal death sentence. You can rebuild your credit and your finances after a short sale.

Immediately After a Short Sale of Your Home

In many cases, banks and lenders view a short sale as the equivalent to a foreclosure. Credit bureaus and future lenders consider it similarly to a default on your mortgage. The three major credit bureaus list it on your credit reports for seven years, but you can take steps immediately after a short sell to help restore your financial profile.

“You should regularly pull your free credit reports through AnnualCreditReport.com,” For someone who is rebuilding their credit, they could consider accessing one of their three available reports every four months in order to check for accuracy in addition to any unfamiliar or fraudulent activity.

Another critical task is to ensure that your loan balance has been forgiven. If it hasn’t been, you could find a collection company coming after you. Be aware, you also must claim the forgiven debt as income when you next file taxes.

Building and rebuilding credit is like the fable of the tortoise and the hare: Slow and steady wins the race. The short sale has less of an impact on your credit score each year after the event.

One to Four Years After a Short Sale

In those first few years, focus on small financial victories. “A simple and free way to begin the credit rebuilding progress is, first to ensure all utility, cell phone contracts and Internet provider payments are made on time and in full,” says Christensen. Ask these companies if they report your on-time payments to at least one of the three major national credit bureaus. He says they’re not typically required to do so, but they often will if asked.

The credit bureaus don’t give utility and cell phone payments as much weight as good credit card stewardship, but they will help move the needle. And every little bit helps.

You may also find that without notice, other creditors will lower your credit limit after your short sale. Wording giving them that option is often included in the fine print of the contracts and user agreements of credit cards and other debt. Don’t let that be a reason to make any more damaging credit moves.

Keep paying bills on time, avoid applying for new credit, and don’t close credit card accounts, You’ll want to keep the cards open so that as you pay down your balances, your debt to credit available ratio is lowered, which improves your score.

Good budgeting can be one of your most vital tools in the years following a short sale. With a damaged credit score, you may find yourself with little to no ability to depend on credit cards as a backup plan. So it’s doubly important that you work to build up a solid emergency fund and prepare a written monthly family budget.

Several Years After a Short Sale

If you do not have many open accounts after a short sale, you may want to try rebuilding your credit score by applying for a secured credit card. You may also be able to find a small loan offed by a bank or credit union in your area that specializes in helping to build up your credit.

“A secured card is one in which you put up a certain amount on deposit that you cannot access,”. “The Bank in turn gives the borrower a credit card with a limit in the same amount of the deposit.”

A secured credit card works just like an unsecured one. There is little risk to the banks and credit unions that offer these cards because your deposit acts as collateral and your self-imposed credit limit. These cards are a good way for a borrower to rebuild credit.

You’re not entirely out of luck if you’d like to try again as a homeowner, either. In many cases, you do not have to wait the full seven years it will take for the short sale to vanish from your credit report before you can buy another home.

“If you were current on your mortgage payments and also did not have a job loss, you can apply for a VA loan two years after selling a home in a short sale,” says Phil Georgiades, chief loan steward for VA Home Loan Centers. “You can also apply for a FHA mortgage three years after a short sale and a conventional mortgage four to seven years after your short sale.”

Homeowners who are still in their homes, but preferred to save their home rather than Short Sale should do one or two things.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

What Are the Options for Homeowners in Foreclosure

28 Wednesday May 2014

Posted by in Foreclosure Defense, Your Legal Rights

≈ Leave a comment

Many new homeowners are confused on the transactions involving their mortgage loans right after the close of escrow. In many cases, homeowners store their mortgage loan documents without reviewing them for errors that needed to be corrected immediately.

Most new buyers rarely knew about problems that mortgage document errors could create for them in the future if not corrected immediately either before or after the close of escrow.

This post is designed to address some of the questions that new homeowners usually encounter;

How do I know who my lender is and how to contact them?

Look at your monthly mortgage coupons or billing statements for the name of your lender and contact information.

I do not remember what type of mortgage loan I have, how can I find this information?

Look on the original mortgage documents or call your mortgage lender.

Do I need to keep living in my house to qualify for assistance?

Typically, yes, but call your lender to discuss your specific circumstances and get advice on options that may be available.

What type of information should I have ready to discuss with a lender?

Typical information requested by lenders in a workout package include:

  • Brief explanation of circumstances
  • Recent income documents
  • List of household expenses


My employer has already announced layoffs within the coming months, what can I do now?

Through this website you have taken the first step toward educating yourself about available options. Determine if the layoffs will cause a financial hardship that will make it hard for your family to make your mortgage payments. If so, consider other resources that you have available to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of consumer debt, consider contacting a non-profit, consumer credit counseling agency. Take advantage of any employer offered resources. If you still believe that you will have trouble making your mortgage payments, contact your lender right away.

Will there be any out-of-pocket expenses if I am approved for a workout option?

Some workout options do include expenses that the borrower is expected to pay, for example, recording fees for a loan modification. Because, every situation is different you should contact your lender for more information. However, if a lender has no contact with a borrower and has to start foreclosure, the legal fees that the borrower will be expected to pay can be very expensive. To avoid unnecessary legal fees, call your lender as soon as you realize you are in trouble.

What happens when I miss my mortgage payments?

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your lender or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your lender or HUD an additional debt.

Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future. So you should avoid it if all possible!

What should I do if I miss mortgage payments?

Do not ignore the letters from your lender. If you are having problems making your payments, contact your lender immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.

Stay in your home for now. You may not qualify for assistance if you abandon your property.

Contact a HUD-approved housing counseling agency. They have information on services and programs that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

If you bought your home with a Veterans Administration (VA) guaranteed loan, call the VA office nearest you.

What are my alternatives?

Your options include the following:

  • Special forbearance: Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently lost your job or your source of income or if you had an unexpected increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
  • Mortgage modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay).
  • Partial claim: Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current.

You may qualify if your loan is at least 4 months delinquent but no more than 12 months delinquent; your mortgage is not in foreclosure; and you are able to begin making full mortgage payments.

When your lender files a Partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.

Pre-foreclosure sale: This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.

You may qualify if the “as is” appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value; the loan is at least 2 months delinquent prior to the pre- foreclosure sale closing date; and you are able to sell your house within 3 to 5 months (depending on what your lender agrees to).

An additional benefit to this option is the assistance you will receive with the Seller-paid closing costs.

Deed-in-lieu of foreclosure: As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house, but it will help your chances of getting another mortgage loan in the future.

You can qualify if you are in default and don’t qualify for any of the other options

your attempts at selling the house before foreclosure were unsuccessful; and you don’t have another FHA mortgage in default.


How do I know if I qualify for any of these alternatives?

A housing counseling agency can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your lender.

Should I be aware of anything else?

Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you’re selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Equity skimming: In this type of scam, a “buyer” approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The “buyer” may suggest that you move out quickly and deed the property to him or her. The “buyer” then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Phony counseling agencies: Some groups calling themselves “counseling agencies” may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself, for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services call a HUD-approved housing counseling agency. Do this before you pay anyone or sign anything.

Are there any precautions I can take?

Here are several precautions that should help you avoid being “taken” by scam artist:

  • Don’t sign any papers you don’t fully understand
  • Make sure you get all “promises” in writing
  • Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale
  • Check with a lawyer or your mortgage company before entering into any deal involving your home
  • If you’re selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state’s Attorney General, the State Real Estate Commission, or the local District Attorney’s Consumer Fraud Unit for this type of information.


What are the main points I should remember?

  • Don’t lose your home and damage your credit history if you can help it
  • Call or write your mortgage lender immediately
  • Stay in your home to make sure you qualify for assistance
  • Arrange an appointment with a HUD-approved housing counselor to explore your options
  • Cooperate with the counselor or lender trying to help you
  • Explore every alternative to losing your home
  • Beware of scams
  • Do not sign anything you don’t understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation
  • Act now. Delaying can’t help. If you do nothing, You will lose your home and your good credit rating


What is the Best Way to Avoid a Foreclosure?

The best way to avoid home foreclosure from the get-go is to understand that the purchase of real estate is one of the biggest transactions most people will face in their lives. Given such great importance, it is essential that a potential home buyer enter the process with both eyes wide open and educated on how to correctly go about buying the right property for them so that foreclosure never becomes an issue.

What is the Best Way to Avoid Foreclosure Once the Process Has Begun?

Once the foreclosure process has run its course, it is too late. Foreclosure leaves a black mark on the homeowner’s credit history that may stay with them for as many as 10 years, making it harder and more expensive to obtain credit and to purchase things for anything other than cash.

Mistakenly, many homeowners facing foreclosure wait until the 11th hour to try and do something about it in order to avoid the after effects of home foreclosure. Once in default, the homeowner faces the real possibility of losing his or her home. Fortunately, there are a number of things that can be done to avoid home foreclosure:

  • Cure the default by paying the loan current; in other words, pay up the back payments owed along with any penalties and interest
  • Redeem the property by paying off the entire loan amount owed before the property goes to auction (this is the only option once the period to cure the default has expired)
  • Refinance the property, if the lender will allow it
  • Sell the property outright; depending on whether the current market climate is a seller’s market or a buyer’s market this may not be as easy as people think
  • Request a short sale from the lender; this option to sell the property for less than the amount owed on it also depends on the lender’s cooperation
  • File for bankruptcy and seek a stay of the foreclosure.

When Everything Fails;

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

Why Financial Planning is the Key to Saving Your Home from Foreclosure

28 Wednesday May 2014

Posted by in Bankruptcy, Foreclosure Crisis, Foreclosure Defense, Pro Se Litigation, Your Legal Rights

≈ Leave a comment

Many homeowners who found themselves in the unfortunate situation of mortgage loan default often wonder, if they could have prevented it.

The best foreclosure prevention takes place before you purchase a property — whether it be a primary residence or an income property. Proper financial planning, including creating a budget and performing disciplined research, should enter the equation long before escrow even opens.

Many people learned this valuable lesson much too late during the most recent market cycle and bubble burst. They bought more house than they could rightly afford, signed on using questionable financial instruments to pay for it, and as a result faced the possibility — and in many cases the eventuality — of foreclosure.

From the loss of a job or the drain of equity in the property (going negative or “underwater”), to divorce or a major medical crisis, an individual’s or family’s funds can be depleted rather quickly, forcing them to make a choice between which bills to pay and which ones to hold off on. In many situations the ultimate choice comes down to a decision between paying the mortgage, the credit cards, or keeping food on the table. In any case, it’s not an enviable position to be in.

While many of these situations are unforeseeable, the best thing to do with what is many people’s most costly asset is to be proactive and try to prevent the possibility of foreclosure ahead of time.

There are a number of reasons why a property owner could be facing foreclosure. Given the correct set of circumstances, any one of them could lead to financial hardship, causing the owner/borrower to miss making mortgage payments and leading to the lender initiating the foreclosure process.

Create a Budget and Stick to It

It may be an old saying, but living within your means is the most prudent way property owners can protect what is in many cases their most expensive asset. Too many property owners went into foreclosure during the last cycle because they treated their home or income property as an ATM, pulling cashing out their equity to buy cars, pay for vacations, buy furniture, renovate their home, or to pay college tuition for their children.

When you’re borrowing hundreds of thousands of dollars to purchase property, you need to make sure the financial numbers add up before you move forward. A proper budget creates a structure that prioritizes your monthly finances so that you spend your money on what is most important. It protects you from wasting your cash on whims and ending up short on the items that are critical, like your monthly mortgage payment.

Financial planners typically recommend a six-month savings cushion, meaning you should be able to continue to make all your financial commitments for six months if your income is completely cut off. That’s a great rule of thumb, but many people find it tough to get there because their monthly income is already stretched to the limit.

Still, if you want to drastically lower the risk of ever defaulting on your mortgage payments or losing your home to foreclosure, it’s critical that you build some savings into your budget. Even if it’s just a few dollars a month, be disciplined about setting aside cash for that rainy-day fund. If you end up saving enough for six months, funnel those monthly savings toward paying down extra principal on your mortgage (assuming your mortgage does not have a pre-payment penalty).

What can be done to avoid foreclosure?

Even the best planning and budgeting can’t always stave off unforeseen circumstances. Whenever a property owner finds him or herself in a position where those circumstances turn to financial hardship, the best thing to do is to call the lender right away. Report the circumstances to the lender (not the company servicing the mortgage since all they are is a debt collector).

Ask the lender what can be done to avoid going into foreclosure. There may be alternatives to foreclosure available that could make a difference in terms of to what extent the owner/borrower’s credit history is affected, if at all.

From a loan modification and principal reduction, to the lender approving a short sale or accepting a deed in lieu of foreclosure, the option chosen can make a difference as to the future availability of credit to the borrower.

DON’T file for bankruptcy protection

Many people are under a false impression that they can save their home and other assets simply by filing for bankruptcy protection. Nothing could be further from the truth.

The bankruptcy laws were not put in place to shield people from anything bad happening to them. To the contrary, one must think long and hard about filing for bankruptcy before hiring a bankruptcy attorney and proceeding with the process. Like a foreclosure, bankruptcy stays with you on your credit report for years to come, so it is not a step to be taken lightly.

Most importantly, bankruptcy does NOT either prevent or avoid foreclosure, it can only delay it…at best. At worst, the foreclosing lender could convince the judge to allow the foreclosure to proceed right away without granting even a temporary stay. In any case, all the defaulting borrower has done is delayed the inevitable.

Foreclosure Prevention

The biggest lesson to take away from the most recent foreclosure crisis is that many of the foreclosures that took place from 2007 through 2012 could have been prevented with proper financial planning. And the best plan to start with is a proper budget.

There are plenty of budgeting software programs out there for tech savvy consumers to upload to their computers. And for those who aren’t into computer programs, there’s nothing wrong with a legal pad and a pen to start outlining a family budget. Put down your monthly gross income, your monthly expenses, and leave plenty of room for unexpected expenses which will most certainly arise.

It’s never too late to get started!

However, if you have already found yourself in the unfortunate foreclosure proceeding, your best option at this point is to defend and protect the equity in your home!

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

How Michigan Homeowners Should Avoid Foreclosure

27 Tuesday May 2014

Posted by in Foreclosure Defense

≈ Leave a comment

Foreclosure

As Homeowners already know, foreclosure is a legal process spanning 150-415+ days, by which a creditor (bank, mortgage company, etc..) takes ownership of a property to satisfy a debt (mortgage, second mortgage or home equity loan).

What Are the Timelines?

Foreclosure Process Timeline
DAY
1 16-30 45-60 90-105 150-415+
STEP
Borrower misses monthly payment.
Mortgage servicer assesses late fees & attempts to
contact owner, concerning missed payment.
Letter sent to homeowner stating they have breached terms of
mortgage due to continued non-payment.
Servicer refers loan to foreclosure department. Attorneys are
hired to initiate foreclosure proceedings.
House sold at sheriff’s sale and sheriff’s deed is filed at
Register of Deeds. In some States, Michigan Homeowners have 6 month period
of time redeem their property after the sheriff’s sale.

Types of Loans/Mortgages

Conventional, Rural Development, FHA – Federal Housing Administration, VA – Veterans Administration, MSHDA –  Michigan State Housing Development Authority, Option ARM Loans – Adjustable Rate Mortgage, Variable Interest Rate Loans, Fixed Interest Rate Loans, Balloon Payment Loans, and Interest Only

The type of loan or mortgage you have will determine the options available to you during the foreclosure process

   How Can Michigan Homeowners Keep their Homes?

Advancement of Claim:
On a conventional mortgage (insured with private mortgage insurance), the insurance company can advance the
money needed to cover the missed payments, sometimes without interest charges. You can defer the repayment of this advancement until after the mortgage has been paid off.

Forbearance:
The lender increases the monthly payment amount (often 1 ½ original), so the homeowner will become
current with their payments, sometimes, in 12-18 months. Lenders will often require a large payment upfront before agreeing to this new payment schedule.

Modification:
A lender may agree to change the terms of the mortgage to reduce the interest rate and/or extend the
term of the loan to lower your monthly payments.

Partial Claim:
Similar to an advancement of claim in a conventional mortgage, the mortgage servicer can make the
homeowner current with their payments by adding the amount past due to the loan as a “sleeping lien”, which the homeowner will repay once the current mortgage has been satisfied.

Refinance:
This lowers your monthly payment by changing the terms of your loan. The cost effectiveness of this
depends greatly on your payment history, equity, terms of your original mortgage, and the type of refinancing your choose. Many lenders do not inform borrowers of the additional, long-term costs that can be incurred from some methods of refinancing.

Repayment Plan:
If a homeowner experiences a period of financial trouble, a repayment plan may be scheduled to prevent foreclosure. This will schedule a future period of higher payments, to cover the payments missed.

                                                                       Tax Foreclosure

YEAR 0 1 2
STEP      A – B – C

YEAR 0
A.  Homeowner fails to pay
property taxes. Delinquent tax
notices mailed to homeowners.

YEAR 1
B. Property goes into Forfeiture. Fees and interest
are applied to the amount due. Notices of
forfeiture mailed to homeowners. This is the
beginning of the forfeiture process.

YEAR 2
C. Final notice of delinquency delivered in person. Property goes into foreclosure on
the 31st of March in the second year of delinquency, following a circuit court
judgment, and the county takes legal ownership. The property and all structures
upon are slated for sale at public auction. There are no redemption options at this point.

                                                                  Foreclosure Scams

– Offers involving a fee, membership, or subscription charge prior to service. (illegal in Michigan)
• Calls asking for you SS#
• Signing any contract by anyone other than a HUD or MSHDA approved organization/counselor
• Claims to immediately stop/end the foreclosure process.
• If you have been a victim of such a scam Call 877- FTC-HELP and file your complaint online at
http://www.michigan.gov/ag or call 1-877-765-8388

Do not deed your property to anyone offering you foreclosure assistance
• Do not make loan payments to anyone but your lender
• Do not pay money to a foreclosure counselor before receiving service
• Do not sign any documents from private companies without reading them or having them examined first
• Only speak to HUD or MSHDA certified counselors and confirm their certification.

                                                                     Financial Counseling 

– You do not need to pay for adequate counseling or assistance.
There are many non-profit organizations in mid-Michigan, approved by the United States Department of Housing and Urban development (HUD) and the Michigan State Housing Development Authority (MSHDA), which provide counseling to the public free of charge.

                                                          Speak to Your Mortgage Servicer

If you become unable to make your monthly payments, immediately contact your mortgage servicer. Do not wait to receive past due notices.
• Be polite and explain why you are, currently, unable to make your payments.
• Respond to all communication from your mortgage service and try to cooperate with them.
• Inform them that you do not intend to default on your loan and are working to become current with your payments.

                                                                  Foreclosure Counseling

– A foreclosure counselor will want to see: a complete copy of your primary mortgage and any secondary mortgage or home equity loan, proof of current income (pay stub, W-2 form, social security statement), and you current household budget (all expenses including billing statements).

-Ask the counselor to call your mortgage servicer with you after reviewing your situation.

    Mid-Michigan Resources

  FINANCIAL HELP IS FREE IN MICHIGAN
                                                                             CALL 211

– Center for Financial Health
2400 West Road
East Lansing, Michigan 48823
517-319-1309

• Franklin Street Community Housing Corporation
618 Seymour Street
Lansing, Michigan 48933
517-482-8708

• Lansing Affordable Homes, Inc
6810 South Cedar Street
Suite #15
Lansing, Michigan 48911
517-694-6284

           Legitimate Resources

U.S. Housing and Urban Development
(HUD) Interactive Voice Response
System: (800) 569-4287

For information on buying a home, renting,
loan default, foreclosure, credit issues,
fraud reporting, FHA loans, and a list of
HUD approved counselors
Visit: http://www.HUD.gov

The Michigan State Housing Development Authority (MSHDA)
735 E. Michigan Ave
P.O. Box 30044
Lansing, Michigan 48909
(517) 373-8370
http://www.michigan.gov/mshda

• Financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing.

Tips For Avoiding Foreclosure

Don’t ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.

Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open
the mail will not be an excuse in foreclosure court.

Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can’t make your payments. Learn about the foreclosure laws and timeframes by contacting the State Government Housing Office.

Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found at
http://www.HUD.gov.

Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing
counselor near you or call (800) 569-4287.

Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships,
entertainment-that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.

Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they demonstrate to your lender that
you are willing to make sacrifices to keep your home.

Avoid foreclosure prevention companies.
You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead.
Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month’s mortgage payment) for information and
services your lender or a HUD approved housing counselor will provide free if you contact them.

Don’t lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

– FBI studies have ranked Michigan #3 out of the top ten states affected by mortgage fraud since the subprime mortgage crisis began.

– For the top ten cities affected by this fraud, Detroit was ranked #3 and Dearborn #10.

  How Identity Theft Can Cost You Your Home!

– Individuals obtain a homeowner’s personal information through various means (dumpster diving, phone/mail scams, etc..)

• This information is used to obtain new forms of ID and use them to transfer ownership of the property for profit or take out a second mortgage (pocketing the money).

– The legal owners of the home are completely unaware of this proces, as it goes on behind the scenes.

– The FBI recommends homeowners, periodically, check the status of their property with their local register of deeds.

Property Reporting System

The Ingham County Register of Deeds is developing a Property Reporting system that will notify registered users (via email) of any new activity involving their property.

This will allow you to track activity concerning your property and notify you of any tax or construction liens filed against you. Property owners will have to sign up for this free service at ingham.org.

Home owners should wake up TODAY! before it’s too late by mustering enough courage for “Pro Se” Litigation (Self Representation – Do it Yourself) against the Lender – for Mortgage Fraud and other State and Federal law violations using foreclosure defense package found at http://www.fightforeclosure.net “Pro Se” litigation will allow Homeowners to preserved their home equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for Mortgage Fraud, Quiet Title and Slander of Title; amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

 

 

What Homeowners Needs to Know About “Pro Se” Litigation and Settlement With Lenders

26 Monday May 2014

Posted by in Foreclosure Defense

≈ 1 Comment

Mortgage payment collectors at companies are agreeing to ease the terms of borrowers’ underwater mortgages, but they are increasingly demanding that homeowners promise not to insult them publicly. In many cases, they are demanding that homeowners’ lawyers agree to the same terms. Sometimes, they even require borrowers to agree not to sue them again.

During the past few years, loan servicers have been renegotiating mortgage terms with borrowers who have fallen behind on their payments. Since the housing crash, there have been about 1.3 million loan modifications done under the government’s Home Affordable Modification Program, according to the U.S. Department of Treasury. Servicers have done an additional 5.6 million modifications in-house.

The 2012 National Mortgage settlement, which covered Ally Financial Group, Bank of America, Citigroup Inc, JPMorgan Chase & Co and Wells Fargo & Co prohibited the use of waivers during the course of offering normal loan modifications—though it did allow for waivers in the event of litigation. Waivers were also forbidden under HAMP modifications.

That still leaves plenty of room for servicers to try to block borrowers from suing, or to use gag clauses. The gag orders often pop up after borrowers think deal negotiations have been completed.

These clauses can hurt borrowers who later have problems with their mortgage collector (Servicer) by preventing them from complaining publicly about their difficulties or suing. If a collector, known as a Servicer, makes an error, getting everything fixed can be a nightmare without litigation or public outcry.

It was only a matter of time before it became common knowledge. Tens of thousands of homeowners have successfully litigated their foreclosure cases only to come to a fork in the road where they must make a decision: (1) finish the case at trial or (2) accept an incredibly “generous” offer from the pretender lender. My choice is option #1. But Homeowners understandably most often choose option #2.

By way of example, and not to disclose any of the details in the hundreds of cases I know have been settled to the satisfaction of the homeowner, pick a number. Let’s say you have a mortgage and note that you are successfully litigating — i.e., showing that the origination was false, that the payee and mortgagee were falsified, and that the assignment was fabricated based upon a fictitious sale of the loan because no money ever exchanged hands.

Let’s say the original note and mortgage was for $500,000 and the property was only worth $300,000 and now the property is worth $250,000. The foreclosing pretender lender sat on the case and now is claiming that the total owed, with accrued interest, fees, costs etc. is now $700,000. Assume you know you have them right where you want them.

Suddenly the attorney for the bank or someone from the back of the courtroom whom you didn’t realize was there, proposes that the case be settled. The settlement terms are that the balance due will be $100,000, the interest rate 2% fixed, and the term is 40 years. So your choice is getting rid of that last $100,000 or accepting a mortgage and note of dubious legality for $100,000 and taking the risk of title problems later when you try to sell or refinance.

Most people, faced with the possibility of losing even when they are confident of success, take the deal. And the fact that it comes with all kinds of confidentiality and gag clauses doesn’t stop them. But lawyers and homeowners take note: if you are well informed and litigate aggressively, these results are frequently and most likely in reach.

The reason why you don’t hear about success in defeating the banks is because people are under gag orders not to talk about it.

Gag orders and bans on suing are appearing when borrowers use litigation to settle foreclosure and loan modification cases. But they are also popping up when the Servicer modify loan terms outside of the courts, known as “ordinary loan modifications.

So what options does the struggling Homeowner have in order to protect his/her rights and the equity in their homes?

The Answer is;

“Pro Se” Litigation (Self Representation – Do it Yourself) – for Mortgage Fraud using foreclosure defense package found at http://www.fightforeclosure.net homeowners preserved their equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for mortgage fraud amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net

9 Options For Homeowners Facing Foreclosure

26 Monday May 2014

Posted by in Banks and Lenders, Federal Court, Foreclosure Defense, Judicial States, Loan Modification, Non-Judicial States, Pro Se Litigation, State Court, Your Legal Rights

≈ 2 Comments

Many Homeowners facing foreclosure often wonder what are their best possible options. This post is designed to let homeowners struggling with mortgage payments what their best possible options are.

Option #1: Renegotiate with the lender

Step one is to contact your lender as soon as you know you can’t make a payment. The faster you move the more options you’ll have to fix your financial future. Borrowers may have the option of renegotiating their loan with the lender. Try to negotiate a plan that will enable the loan to be back in service. Lenders don’t want the property back; they want to keep their loan portfolio full of performing loans — not defaulting loans. Lenders say that the sooner they hear from a delinquent borrower in trouble, the easier it is to negotiate a solution.

Option #2: Reinstatement

Prior to a foreclosure sale, borrowers have the right to reinstate a delinquent loan. The reinstatement option gives homeowners the opportunity to make up back payments plus any incidental charges incurred by the bank such as filing fees, trustee fees and legal expenses. Paying off the reinstatement amount will cancel the foreclosure and enable the homeowner to continue to live in the home as if no default occurred. For many delinquent borrowers, however, reinstatement is not an option because they are deep in debt and cannot make up back payments, plus other expenses. Consult with a real estate attorney or an experienced real estate broker because reinstatement laws vary from state to state.

Option #3: Forbearance

One of the most overlooked foreclosure options a borrower has is forbearance. Forbearance is the postponement for a limited time of a portion or all of the payments on a loan in jeopardy of foreclosure. Partial or full payment waivers had their origins in the Great Depression. A lender expects that during the moratorium period the borrower can solve the problems be securing a new job, selling the property or finding some other acceptable solution.

Depending on your lender, you may be able to restructure your loan. For example, delinquent mortgage payments may be added to the backend of the borrower’s scheduled payments or the borrower could be given more time to bring the late payment current. Some mortgage companies are able to arrange a repayment plan based on your current financial situation. You may qualify for this option if you recently lost your job. Call your lender and inquire if you meet the requirements for forbearance.

Option #4: Redemption

To redeem a loan, the borrower must pay off the loan in full. Borrowers may accomplish this by refinancing (with a family member cosigning perhaps) or by a friend or relative bailing out the borrower in exchange for equity or some other financial arrangement. Again, redemption rights — like reinstatement rights — vary from state to state. Most states permit redemption up to the foreclosure sale.

Option #5: Sell the Property

For owners who don’t care to save the property, or who have no other choice than to let the property go, selling the property may be a smart choice. If you have enough equity in the house to allow you to pay off the mortgage in full, then a sale is usually your best option. This option preserves your equity and what’s left of your credit score. Selling also leaves you in a much better financial position should you want to buy another home in the future. Even if you don’t have equity, you may be able to arrange a short sale, where the bank agrees to forgive the mortgage debt for less than the total amount owed on the mortgage if you sell the property to a third party. The advantage to the lender is that it does not have to deal with costly foreclosure proceedings.

Option #6: Deed in Lieu of Foreclosure

For homeowners who have no opportunity to reinstate, redeem or even sell their property and just want out of the property, a deed in lieu of foreclosure may be viable option. Essentially, a deed-in-lieu of foreclosure is a transfer of title from a borrower to the lender, which the lender accepts as full satisfaction of the mortgage debt. With this option, you as a borrower voluntarily “give back” your property to the mortgage company. You won’t save the house, but you do avoid the trauma of foreclosure and reduce the negative impact on your credit.

Option #7: Bankruptcy

Filing bankruptcy is not a permanent cure for foreclosure, but it can temporarily halt the foreclosure process. Once a borrower in default files a petition for bankruptcy, foreclosure proceedings stop immediately. A homeowner, however, must hire an attorney in order to file bankruptcy, which can be expensive. Before considering this option, a homeowner should consult a real estate attorney.

Option #8: Foreclosure

Allowing the foreclosure to proceed to the auction is generally the worst choice. By doing nothing, homeowners will lose their home and any equity they have earned. Plus they will damage their credit at the same time. Moreover, some states allow lenders to go after borrowers in court for any deficit between what the house eventually sells for and what the homeowner owes. This is called a deficiency judgment. Unfortunately, many homeowners chose this option, putting their heads in the sand and hoping they’ll win the lottery and avoid foreclosure.

Option #9: “PRO SE” LITIGATION

“Pro Se” Litigation (Self Representation – Do it Yourself) – for Mortgage Fraud using foreclosure defense package found at http://www.fightforeclosure.net homeowners preserved their equity, saves Attorneys fees by doing it “Pro Se” and pursuing a litigation for mortgage fraud amongst other causes of action. This option allow the homeowner to stay in their home for 3-5 years for FREE without making a red cent in mortgage payment, until the “Pretender Lender” loses a fortune in litigation costs to high priced Attorneys which will force the “Pretender Lender” to early settlement in order to modify the loan; reducing principal and interest in order to arrive at a decent figure of the monthly amount the struggling homeowner could afford to pay.

If you find yourself in an unfortunate situation of losing or about to lose your home to wrongful fraudulent foreclosure, and need a complete package that will show you step-by-step litigation solutions helping you challenge these fraudsters and ultimately saving your home from foreclosure either through loan modification or “Pro Se” litigation visit: http://www.fightforeclosure.net