Firm News: Sherwin Law Firm Succeeds in Raising Foreclosure Defense Claims for Massachusetts Homeowner

I'm pleased to write that I recently won a decision from Plymouth Superior Court allowing me to raise foreclosure defense claims against a servicer and lender who claimed to have performed a lawful foreclosure against my client.  These claims resulted from the servicer's repeated refusal to consider my client for a loan modification, despite my client following up with the requested paperwork requests for over nine months.  I raised claims under

Massachusetts's Consumer Protection Law ("Chapter 93A"), promissory estoppel, and breach of contract. 

The battle is far from over.  Here, the Court has merely allowed me to proceed with litigating these claims; it doesn't mean I have won . . . yet.  However, I am pleased to get this case off the ground.  Often, one of the toughest parts of foreclosure defense is convincing a court that you have claims worth pursuing.  I can't say whether my lawsuit will be successful, but I'm looking forward to giving my client her day in court on these important matters.

Are you facing a foreclosure related to a loan modification denial? Contact me right away for a consultation.

BLOG POST:

http://maforeclosurelawblog.sherwinlawfirm.com/2015/02/LoanModificationLawsuit.html

WEBSITE:  http://www.sherwinlawfirm.com

A Guide for Fighting a Loan Modification Denial

I recently published a guide on Avvo.com on "How to Fight a Loan Modification Denial."  As I state in the guide, fighting a loan modification generally requires a lawyer's help, but this guide has advice on what can be done to prepare such a case in advance of hiring a lawyer.  I hope this guide is a help to those who need it.

Blog Post URL:  http://maforeclosurelawblog.sherwinlawfirm.com/2015/02/a-guide-for-fighting-loan-modification.html

Website:  http://www.sherwinlawfirm.com

Breaking News: Massachusetts Appeals Court Upholds Validity of Mortgage Assignments

The Massachusetts Appeals Court ruled in favor of the banks today in a decision that challenged the validity of mortgage assignments prior to a foreclosure.  In Shea v. Federal National Mortgage Association, a homeowner challenged the validity of the foreclosure against his home on the basis that the underlining assignment of his mortgage was void.  In short, this homeowner tried to argue that Federal National Mortgage Association (“Fannie Mae”) was never a valid recipient of his mortgage.  The Appeals Court rejected these arguments, and supported its decision by citing several, prior Appeals Court and Supreme Judicial Court decisions that limit the ability of homeowners to challenge the assignment of their mortgages.

The lesson from Shea is that challenges to mortgage assignments are difficult to make.  While there is documented evidence of “robo signing,” fraudulent assignments, and missing paperwork, homeowners have limited means to challenge the assignment of their mortgages unless they can show that the assignment is void, and never legally binding in the first place.  Shea reaffirms that both the underlining debt for the purchase of a home (“promissory note”) and the security interest for this debt (“mortgage”) can be freely transferable to third parties, with the original homeowner having few defenses to the person or entity acquiring these items.

Blog Post Website:
http://maforeclosurelawblog.sherwinlawfirm.com/2015/02/SheaFederalNational.html

Website:  www.sherwinlawfirm.com

Facing a Massachusetts Tax Foreclosure?

Tax foreclosures are, unfortunately, becoming more common as the economy struggles to recover.  Unlike a mortgage foreclosure, which is typically brought by a lender (or third-party purchaser), a tax foreclosure is often brought by a Massachusetts town or city, or increasingly by for-profit companies.  As such, these types of cases, which are brought in Massachusetts Land Court, have their own particular challenges for struggling homeowners.

Fortunately, help is available:  the Boston Bar Association has launched a pro bono legal assistance program for homeowners involved in these cases.  If you find yourself in one of these Land Court proceedings, ask the clerk to put you in touch with a volunteer.  I, along with other Massachusetts attorneys, will be available to field questions on this complicated of law.

I intend to blog more about tax foreclosure law in the coming months, but I encourage struggling homeowners to take advantage of this great program.  

BLOG POST URL: http://maforeclosurelawblog.sherwinlawfirm.com/2015/02/facing-massachusetts-tax-foreclosure.html

Foreclosure Requirements for FHA Mortgage Loans

Mortgage loans insured by the Federal Housing Authority ("FHA") include specific requirements for foreclosure that homeowners need to be aware of when facing a possible foreclosure. 

FHA mortgage loans are insured by the federal government and are aimed at helping low-income Americans buy a home.  Because the federal government backs these loans, lenders have a greater incentive to lend to those who might not otherwise qualify for a mortgage loan.    

FHA mortgages are different than a standard residential mortgage, and include specific requirements for foreclosure.  One of the most important requirements is the "face to face" meeting prior to foreclosure.  This requirement, which comes from federal government regulations, requires lenders to have a face-to-face meeting after the borrower defaults on the mortgage loan, prior to the lender foreclosing the property. Not surprisingly, few lenders comply with these requirement.    

Here in Massachusetts, a foreclosing entity needs to strictly comply with the terms of a mortgage prior to foreclosure.  Several courts have found that these FHA mortgage requirements—specifically the "face to face" meeting—is a term of the mortgage and as such, must be strictly complied by the lender in order for a foreclosure to be valid.  As such, a borrower with a FHA mortgage loan has a strong defense against foreclosure if their lender has not complied with this requirement.

If you have a FHA loan and are facing foreclosure, seek the help of an experienced foreclosure defense attorney right away.



BLOG URL:  http://maforeclosurelawblog.sherwinlawfirm.com/2015/02/foreclosure-requirements-for-fha.html