Big Changes in the World of Foreclosure Means Big Opportunity for Homeowners
As More Information about the Handling of Mortgages and Foreclosures Emerges, We See Ever More Scandal!
EVENTS ARE (FINALLY) MOVING SWIFTLY. We have been predicting these changes for a long time. Now a major national investigation is drawing to a close (involving all 50 states attorneys general, the U.S. Attorney General, the Federal Reserve, the FDIC, the Federal Financial Crimes Task force, and, last but not lease THE FBI!!!), and there will be far-reaching ramifications. The only surprise is the rapidity of developments.
HERE’S HOW IT AFFECTS YOU:
DO NOT BE MISLED! The problems with lenders documents filed in foreclosures are HUGE, not small. The cost to lenders of filing foreclosures will grow, as they struggle to reconstruct events (and legitimate documents) properly reflecting the history of these loans. It is our opinion that, in a surprising number of cases, individual mortgages will prove to be entirely unenforceable. At that point, perhaps the lenders will offer borrowers the kind of mortgage modifications (including principal reductions) that they should have been offering all along, but wouldn’t. Recently the HAMP program was enhanced, to include the reduction of mortgage principal balances!
We believe that one danger going forward is that naive homeowners, not realizing how strong their hands truly are, will “give away the store,” settling for much less desirable outcomes than their new bargaining position would indicate. Later, when the whole truth about this new “round two foreclosure crisis” comes out, they will kick themselves.
In this time of change, the fundamentals remain true:
1. DO NOT MOVE OUT OF YOUR HOME.
Your homestead exemption is more important than ever.
2. DON’T MAKE DECISIONS ABOUT YOUR FUTURE WITHOUT GETTING GOOD ADVICE.
The situation with mortgages and their enforcement is complex, and the lenders
will come back with new strategies to regain their position of total power over
property owners. But there is only so much they can do to fix what may well be
fatally flawed mortgage documents. Experienced Foreclosure Defense firms
know these issues. Take advantage of their expertise! Your family’s future may
depend on it.
3. IF YOU ARE OFFERED A MODIFICATION, have it reviewed by a qualified foreclosure defense attorney, to make sure it represents the best deal you can get.
For example, we’re seeing Making Homes Affordable modifications
that INCREASE the homeowner’s mortgage balance, rather than
reducing the principal, as the program was intended to do. I guess
the banks feel that everybody in the country should lose money
except for them.
THIS IS JUST THE START OF A VERY LONG STORY.
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