Breaking News: Massachusetts Reaches Settlement with National Banks Over Wrongful Foreclosures

The Commonwealth of Massachusetts reached a settlement with several large banks over illegal foreclosure practices against homeowners.  This settlement, among other things, requires these banks to pay monetary damages and assist homeowners with correcting defective title issues resulting from void foreclosures.

The settlement is a surprise to no one who is familiar with Massachusetts foreclosure law.  Banks and lenders routinely make a mess out of the foreclosure process and the state's lawsuit is yet another example of this.  As said by the Supreme Judicial Court in one of its landmark foreclosure decisions, "what is surprising about these cases is not the statement of principles articulated by the court regarding title law and the law of foreclosure in Massachusetts, but rather the utter carelessness with which the plaintiff banks documented the titles to their assets." 

This settlement is a reminder that any homeowner facing foreclosure should seek the advice of an attorney to learn their rights.   

BLOG URL:  http://maforeclosurelawblog.sherwinlawfirm.com/2015/01/breaking-news-massachusetts-reaches.html

Rise in Deficiency Judgment Lawsuits Against Massachusetts Homeowners

The Boston Globe recently reported that Massachusetts former homeowners who have been foreclosed are facing deficiency judgment lawsuits from their lenders.  I had written about this topic before, and now it appears that these suits are occurring in greater numbers for former homeowners right here in Massachusetts. 

Anyone facing one of these lawsuits should consult an attorney right away.

BLOG URL: http://maforeclosurelawblog.sherwinlawfirm.com/2015/01/rise-in-deficiency-judgment-lawsuits.html

FAQ: I've received a notice about a Servicemembers' Civil Relief Act case against me. What should I do?

Question:   I've received a notice about a Servicemembers' Civil Relief Act against me. What should I do?

Answer:  The Servicemembers' Civil Relief Act ("SCRA") is a federal law that provides certain protections for those in military service.  For foreclosure, the SCRA generally prevents lenders from foreclosing against homeowners in military service.

In Massachusetts, lenders determine whether borrowers fall under the protections of the SCRA through a court action, which is almost always brought in Land Court.  The homeowner is served with a complaint  and has a deadline for responding to the lawsuit and asserting any of their rights under the SCRA.  If the borrower fails to respond, the lender is eligible to obtain a judgment from the Land Court declaring that the homeowner is not eligible for the protections of the SCRA. Lenders typically bring SCRA cases against all borrowers they are intending to foreclose, regardless of how likely it is that the borrower may be in the military. 

When faced with an SCRA complaint, homeowners who are in the military should act quickly to protect their rights.  Homeowners who are not in the military generally have no protections under the SCRA and as such, have few defenses in these cases.  However, an SCRA case is a strong indication that the lender will begin a foreclosure soon, and homeowners faced with these cases should consult with an attorney to explore their options in avoiding foreclosure. 


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