Foreclosure Crisis in MA Continues

While the foreclosure crisis in Massachusetts has gotten better, a recent report shows that foreclosures are continuing to occur throughout the state in high numbers.

My theory on this has less to do with the economy and more to do with the failure of large financial institutions to properly consider struggling homeowners for loan modifications and other alternatives to foreclosure. 

I am finding that homeowners who act quickly to avoid a foreclosure have the best odds of saving their home.  If you find yourself in this situation, contact me for a consultation.

Boston Strong!

Yesterday marked the one year anniversary of the Boston Marathon bombing; an event that shook up our city but brought our community together stronger than ever.  Boston has been my home for the past four years and not a day goes by where I'm not grateful to call this place my home.  

Of course, you knew that I would tie this post to law somehow and here it goes:  aside from being a great city to live, Boston is, hands down, the best place possible to practice law. We have an amazing legal community filled with with talented, courteous attorneys, bright judges, and an abundance of legal resources, including the fantastic Boston Bar Association and MA Trial Court Law Libraries.  Boston is one the few places where fellow attorneys will not hesitate to drop everything and help a fellow attorney or pro se party with a legal question; a favor I am always willing to return for anyone in need of my help.  And, is it coincidence that some of the best legal movies took place in Boston?  I think not!  

Best of luck to the participants in this Mondays' 2014 Boston Marathon.  For anyone interested in making a donation to support victims of last year's Boston Marathon bombing, please visit One Fund Boston. 

Talk to a Foreclosure Defense Attorney Before Becoming a "Warrior"

Last week, I took a break from my busy schedule and watched a movie that was highly recommend to me:  Warrior.  Warrior, simply put, is one of the best movies I've seen in a long time; think Rocky meets The Fighter.  It may look like an action flick at first, but take my word that it is a gripping, powerful movie.  Highly recommended.

The premise of the movie is two brothers fighting in a martial arts tournament; one of whom is a high school physics teacher competing for prize money to save his family home from foreclosure.  A great story line for a movie, but something I hope no one has to do in real life.

Homeowners facing foreclosure do not need to become a "Warrior" or take such drastic steps when facing financial troubles.  Here, the teacher in this movie had a steady, paying job and was months ahead of foreclosure.  If he came to me, I would have recommend he try for a loan modification or, in the alternative, I would have reviewed his title history to see if the bank could lawfully foreclose.

That's not to say that I, or any other attorney, can ever stop a foreclosure for certain.  But, the point is, speaking with a foreclosure defense attorney should always be a homeowner's first step in trying to save a home.

Breaking News: Supreme Judicial Court Issues U.S. Bank v. Schumacher; Finds that Right-to-Cure Notice is Not a Power of Sale Statute

I confess that this news may not qualify as still being "breaking" because it came out several weeks ago, but my crazy schedule kept me from blogging sooner.  However, as this is a major foreclosure decision, I am going to stick with calling it breaking news.  :)

The Supreme Judicial Court issued the long-anticipated U.S. Bank v. Schumacher decision and held that the required right-to-cure notice was not a power of sale requirement.

The right to cure statute, found in G.L. c. 244 Section 35A, requires mortgagees to provide homeowners with a right to cure their mortgage loan debt prior to foreclosure.  Unlike other states, such as Maine, Massachusetts's law has specific requirements about what these notices must include, including the name of the mortgagee, mortgage loan broker/originator, and amount needed to cure the default.    

These specific requirements of these notices became a problem for foreclosing entities, who would often send these notices loaded with defects and mistakes.  A growing number of trial courts in Massachusetts held that any defect in these notices invalidated the underling foreclosure; a interpretation based on the "strict compliance" standard required for foreclosures. 

The Supreme Judicial Court held otherwise, and decided that these right-to-cure notices were not part of the applicable statues for foreclosure.  As such, strict compliance is not required for these notices and a defect in one of these letters alone is not enough to invalidate a foreclosure.

The Court did hold that a foreclosure may be challenged against one of these notices as a matter of equity, if the homeowner can show that as a matter of fairness, the defective notice is enough to justify stopping a foreclosure.

So, what are the take home lessons of Schumacher?

• Earlier is better than later for fighting a foreclosure.  While post-foreclosure cases can sometimes be won, there are many claims available to homeowners that are much more effective if brought as early as possible in the process.  However, with that said . . .
• Schumacher reaffirmed strict compliance for the power of sale statutes: G.L. c. 244 Sections 11-17C.  From my reading of Schumacher, foreclosures not strictly complying with one of these statutes are void.  This leaves some defenses available for homeowners fighting a foreclosure after it occurred.