Mortgage foreclosure defense

For clients facing a mortgage foreclosure action, various actions can be taken to prevent the loss of the home or other property.

Sometimes, mortgage holders make mistakes in the servicing of the mortgage. Actions can be taken to get an accounting from the mortgage servicer of the mortgage payments made by both the property owner and the servicer (for escrow items such as taxes and insurance) to ensure the servicer's records are accurate, and if not, to compel any corrections. Sometimes servicers do not follow the proper procedure required before they can file a foreclosure Complaint. Sometimes they can't prove that the entity which files the complaint is actually the entity that owns the mortgage. We raise these and other defenses for our mortgage foreclosure clients.

If defending a mortgage foreclosure complaint is not the best way to prevent the loss of property, a chapter 13 bankruptcy may be an appropriate solution. We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. Bankruptcy can be used to stop a mortgage foreclosure or tax sale from occurring. In the case of mortgage foreclosures involving property you wish to keep, it can be used to give you time to gradually get caught up with any past-due amounts properly due the mortgage holder and to object to excessive amounts often claimed by mortgage holders for fees and costs.

About Mortgage Modifications

When people are having trouble paying their mortgages, they often look hopefully to a mortgage modification to solve the problem. A mortgage modification can take different forms, but usually involves a new agreement between the borrower and the lender in which the payment delinquency under the current mortgage plus any amounts expended by the mortgage holder for escrow items such as taxes and insurance and attorney’s fees or other costs are added to a new principal balance. Payments of this new, higher balance can sometimes be extended for a longer term, and sometimes the interest rate can be reduced.

Although many mortgage holders and their servicers may offer the possibility of a modification, the process of actually obtaining one can be very time consuming, annoying, and repetitive. Often times, those seeking the modification will be asked to produce various financial documents numerous times and are told certain documents were not received, were not properly completed, or are no longer timely and need to be submitted again.

The important thing to remember is that no attorney, court or government agency can force a lender to modify the terms of a mortgage. Therefore, it should not be assumed that applying for a mortgage modification will solve a mortgage delinquency and prevent the loss of the property. The terms of a Chapter 13 Bankruptcy plan, however, if followed, can prevent the loss of the property and the curing of any mortgage arrearage over time.