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Zombie Foreclosures

Posted in Foreclosure

CFPB: Zombie foreclosures hurt borrowers The Consumer Financial Protection Bureau is keeping an eye on “zombie” foreclosures, which it worries cause “direct borrower harm,” according to a CFPB executive. Zombie foreclosures occur when a bank starts the foreclosure process but then abandons it and fails to alert the homeowner. Homeowners in zombie foreclosures have often already moved out of their homes, not realizing that the foreclosures were never completed and that they are still responsible for mortgage debts, upkeep and taxes, according to a Reuters report. Thousands of borrowers across the country are the unwitting owners of zombie homes, Reuters reported. Many of them are oblivious that their mortgage debts and municipal taxes are continuing to pile up. “There is direct borrower harm if a borrower believes a foreclosure on their property has been conducted and they are no...

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New Federal Rules on Foreclosure

Posted in Foreclosure

New Federal Rules on Foreclosure —By Erika Eichelberger – Thanks to Mother Jones On Thursday, the Consumer Financial Protection Bureau, the federal consumer watchdog set up by the Dodd-Frank financial reform bill, announced a new set of foreclosure-prevention rules focused on keeping loan servicers honest. Servicers, which collect mortgage payments from borrowers and work out terms of a loan, are supposed to explore all alternatives to foreclosure before reclaiming a home, and to give homeowners a fair and clear evaluation process. But as millions of borrowers fell behind on payments in the wake of the financial meltdown, loan servicers got slammed by tons of added legwork and administration, and many more got perverse incentives to fast-track borrowers into default. Some servicers put on a spectacular show of incompetence and outright fraud, routinely losing paperwork, “robo-signing” people into wrongful foreclosures, and locking people out...

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Deceptive Practices in Foreclosures

Posted in Foreclosure

Deceptive Practices in Foreclosures Thanks to the New York Times September 13, 2013  In early 2012 when five big banks settled with state and federal officials over widespread foreclosure abuses, flagrant violations — including the seizure of homes without due process — were supposed to end. But abuses keep coming to light. Despite happy talk about a housing rebound, nearly three million homeowners are in or near foreclosure, and many continue to be victimized by improper and possibly illegal practices. A lawsuit filed this week by the attorney general of Illinois, Lisa Madigan, and a report by The Times’s Jessica Silver-Greenberg have detailed one such abuse. It starts out innocently enough. The banks hire property management companies to determine whether homeowners who are behind on their mortgage payments have abandoned their homes and, if so, to secure the vacant property. It doesn’t...

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Renters’ Rights in Foreclosure`

Posted in Foreclosure, Rental Modification

Renters in Foreclosure: What Are Their Rights? Federal law gives important rights to tenants whose landlords have lost their properties through foreclosure. Renters and tenants are now being affected by foreclosures almost as often as homeowners. The financial downturn resulted in thousands — no, make that millions — of foreclosed homes. Most of the occupants are the homeowners themselves, who must scramble to find alternate housing with very little notice. They’re being joined by scores of renters who discover, often with no warning, that their rented house or apartment is now owned by a bank, which wants them out. Who Are the Renters? Renters who lose their homes to foreclosures don’t fit a single profile. Many of them live in smaller buildings, condos, and single-family homes. They’re located in cities and surrounding suburbs, in low-income and upscale neighborhoods. In short, foreclosed homes...

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More Foreclosures Coming

Posted in Foreclosure

Where is the housing market going in 2013? Thanks to CBS News   (MoneyWatch) The housing market in 2013 stands on a precipice. While there is hope that the slow, but real, housing recovery that took hold last year will continue, fear remains that a sudden economic dip of the kind that could be caused by fiscal disputes in Washington will send the housing market back in retreat.   Debt ceiling: Why you should care Watch Video At CBS.com   Barring prolonged fights over the government’s borrowing limit and federal spending, housing is likely to see mixed results this year. What that means: more foreclosures, slow growth in home prices in some markets, more regulation and low interest rates. Here are a few predictions for how the housing market will change — or not — in 2013: 1. Housing...

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Zombie Titles

Posted in Foreclosure, Mortgage Modification

The latest foreclosure horror: the zombie title By Michelle Conlin  Thanks to Reuters. COLUMBUS, Ohio | Thu Jan 10, 2013 1:58pm EST (Reuters) – Joseph Keller doesn’t expect he’ll live to see the end of 2013. He blames the house at 190 Avondale Avenue. Five years ago, Keller, 10 months behind on his mortgage payments, received notice of a foreclosure judgment from JP Morgan Chase. In a few weeks, the bank said, his three-story house with gray vinyl siding in Columbus, Ohio, would be put up for auction at a sheriff’s sale. The 58-year-old former social worker and his wife, Jennifer, packed up their home of 13 years and moved in with their daughter. Joseph thought he would never have anything to do with the house again. And for about a year, he didn’t. Then it started to stalk...

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Foreclosure and Income Tax Consequences

Posted in Foreclosure

Foreclosure and Its Income Tax Consequences (TheNicheReport) — In a recent issue of The Niche Report I wrote an article on how to safely “walk away” from your mortgage. That article discussed consumer protection statutes, enacted by such states as California, known to lawyers and real estate professionals alike as “anti-deficiency” legislation. This legislation protects homeowners who can no longer afford to debt service their mortgage from personal liability on their mortgage and allows them to simply “walk away” from an over-encumbered or “underwater” property. That article sparked a number of inquiries from our readers, many of whom wondered what the impact of the Internal Revenue rules on cancellation of debt had on those homeowners who elected to “walk away” from their mortgage, lost their home through foreclosure or benefited from a short-sale or modification that included a principal...

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Facing Foreclosure? You May Have Options

Posted in Foreclosure, Foreclosure Defense

  Facing Foreclosure? You May Have Options If yours is one of the nation’s estimated 14 million troubled mortgages, it can seem as though you are running out of options. But help may be on the way: “Homeowners unable to meet their current mortgage payments may have a new remedy. Many lenders are showing a new willingness to reduce the principal owed on the property by lowering or ‘writing-down’ the amount. The reduction brings the mortgage loan in line with current property values and borrower incomes. As foreclosures rise so, it seems, does lenders’ flexibility in offering this option: Principal write-down was used in 30 percent of private loan modifications in 2011, as opposed to only 2 percent in 2009.” (New Options for Homeowners Facing Foreclosure by Lawyers.com) For your reference, here’s a roundup of recent legal updates on...

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Attorney Shawn Newman on Foreclosure Defense

Posted in Foreclosure

Mortgage wizard interviews Attorney Shawn Newman on foreclosure...

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Romney on Foreclosures – Bring Them On

Posted in Foreclosure

November 26, 2011    –    New York Times Mr. Romney on Foreclosures Since the housing bubble began to burst six years ago, prices nationwide have fallen by a third. Nearly $7 trillion of home equity has been wiped out. Currently, some 14.7 million homeowners owe $700 billion more on their mortgages than their homes are worth. Going forward, prices are likely to fall further as banks put a backlog of foreclosed properties on the market. As home prices fall and more homeowners sink underwater, there will be more foreclosures and more price declines. So what is Mitt Romney’s response? Bring it on. In interviews and in the Republican presidential debates, Mr. Romney has said that the cure for foreclosures is for the government to get out of the way and let the process run its course. Once prices hit bottom,...

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No Friend to the Banksters… Attorney Nick Wooten

Posted in Foreclosure

If I have to introduce Alabama foreclosure defense attorney Nick Wooten to you, then you’re not much of a foreclosure crisis news junkie, because Nick has made headlines for his lawsuits against the banksters on behalf of homeowners as much as anyone, and a lot more than most.  Most recently Nick was kicking the crap out of LPS or Lender Processing Services, but he’s also leading a coordinated attack against MERS, and recently he won a very high profile case in Alabama, Horace v. LaSalle Bank, in which the judge agreed with his argument that the note was not properly endorsed and negotiated into the trust and therefore the trust could not foreclose. Read more. Listen to Martin Andelman’s interview of Attorney Nick...

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Modification Guidelines

Posted in Bankruptcy, Foreclosure, Mortgage Modification, Principal Reduction

Read the Hamp Handbook here. It will answer a lot of questions. Lenders may but are not required to reduce principal balances in a modification down to 115% of the principal balance owing. Lenders may not foreclose on a borrower who is in the process of modification until after the borrower is declined and other options have been considered. A borrower in bankruptcy may proceed with a modification. Unemployed borrowers can have up to six months of reduced payments will seeking new employment. There are many other points these guidelines clarify....

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