Articles

Help May Be on the Horizon for Florida Homeowners Facing Foreclosure

In December 2009, the Florida Supreme Court ordered that lenders and borrowers be allowed to file for pre-suit mediation prior to initiating the foreclosure process. This pre-suit mediation program, dubbed Residential Mortgage Foreclosure Mediation, fulfills Florida’s mediation requirement for all foreclosure matters and allows lenders and borrowers to voluntarily attempt to obtain a resolution. The goal of the program is to help homeowners keep their homes and give them a fresh start financially. The program was initially available only in state courts. However, in recent months the Federal Bankruptcy Court enlisted bankruptcy trustee Laurie Weatherford’s help in creating a similar program to help homeowners in the federal bankruptcy courts. Bankruptcy judges had grown concerned with the number of debtors who were entering their court rooms owing more on their mortgages then their properties were worth, and seriously behind on their mortgage payments. The federal program works in conjunction with Chapter 13 bankruptcy proceedings. Chapter 13 proceedings can often allow homeowners to keep their homes by working out a debt repayment plan with their creditors. How does the Mortgage Mediation Program Work? The program requires the borrower and lender to come together to work out a resolution. In the first stage, the lender and borrower select a mediator. Mediators are neutral parties who work with the lender and borrower toward a resolution. Once a mediator is chosen, the lender and borrower, and often the borrower’s attorney, sit down together and try to find a solution that keeps the homeowner in their home. Many times the lender will agree to modify the current mortgage. A mortgage modification often lowers the current interest rate on the...

Feds Provide Recourse for Wrongful Foreclosure Victims

It’s no secret that Florida and the rest of the country has suffered through and continues to suffer through a tough economy.  The Great Recession has claimed the livelihoods and homes of many throughout Orlando as savings and even retirement accounts have been tapped into to make ends meet. At the same time, far too many homeowners faced foreclosure because of improper behavior on the part of their mortgage servicers. Sadly, Orlando foreclosure defense attorneys see it all the time. But, finally, the federal government has taken notice of these wrongful foreclosures and is giving Orlando-area homeownes, as well as homeowners throughout the U.S., a way to fight back. Independent Foreclosure Reviews Available Borrowers whose primary residence was in the foreclosure process at some point between January 1, 2009 and December 31, 2010 are eligible to seek an independent review of their foreclosure proceedings if they believe they were wronged by their mortgage servicer. The reviews are available to customers of 24 major mortgage servicers including Chase, CitiBank, Countrywide, GMAC Mortgage, Bank of America, IndyMac, U.S. Bank, Wachovia, Washington Mutual and Wells Fargo. Borrowers who are found to have suffered financial injury may be entitled to monetary compensation. Qualifying financial injuries include, but are not limited to the following: The balance of the mortgage at the time of foreclosure was more than the borrower actually owed The borrower was complying with the terms of a mortgage modification agreement, but the servicer still proceeded with a foreclosure sale The foreclosure action took place while the borrower was protected by bankruptcy The borrower properly requested assistance or modification and was waiting on a decision when the foreclosure sale happened The...
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