Practice Pointers: "I'm Not a Lawyer, But . . ."

In my work as a foreclosure defense attorney, I have met many passionate professionals committed to keeping hardworking homeowners in their homes.  Unfortunately, given the high stakes involved in these cases, I have also seen alot of bad advice being passed on to vulnerable homeowners; many of whom are too quick to accept the help being offered to them.  These conversations always begin the same way, with the disclaimer "I'm not a lawyer, but . . ."

The Internet is not always helpful in this regard; while the web makes it easier for homeowners to learn about foreclosure defense options, it also helps to spread rumors and lies.  I often come across defenses and strategies that are proclaimed to be effective foreclosure defense methods but in reality, are meritless strategies routinely rejected by courts.

If you are facing a foreclosure, you should absolutely read up about this area from reputable sources.  But, before you commit to a specific strategy or course of action, seek the advice of a lawyer in this area of law. 

BLOG POST:

http://maforeclosurelawblog.sherwinlawfirm.com/2015/05/practice-pointers-im-not-lawyer-but.html

WEBSITE:

http://www.sherwinlawfirm.com

Happy Memorial Day!

Breaking News: Massachusetts Appeals Court Holds that HUD Requirements Are A Foreclosure Defense for FHA Loans

The Massachusetts Appeals Court held today in Wells Fargo v. Cook that the HUD pre-foreclosure requirements are a valid foreclosure defense for FHA loans.  As I have written before, FHA loans--aimed at helping low-income Americans buy homes--contain specific pre-foreclosure requirements within the mortgage itself. The question for the Court was whether a lender's failure to comply with one of thse requirements made the foreclosure void and, whether a homeowner could raise this as a defense post-foreclosure. In Cook, the Appeals Court held that these pre-foreclosure requirements could be raised as a defense to foreclosure.  The Court's decision will be a benefit for homeowners with FHA loans in need of assistance defending against foreclosure.

BLOG POST:

http://maforeclosurelawblog.sherwinlawfirm.com/2015/05/WellsFargovCook.html

WEBSITE:

http://www.sherwinlawfirm.com

HAMP Extended to 2016

The Federal Government announced last Friday that the Home Affordable Modification Program ("HAMP") has been extended to the end of 2016.  HAMP was set to expire at the end of this year; this extension provides homeowners with additional time to apply for this program, which provides loan modifications to struggling homeowners.

While this extension for HAMP is a good thing for homeowners, almost everyone agrees that this program––passed in the wake of the financial crisis––has fallen well below expectations, and has not helped everyone that it should have.  There are different opinions on why the program has not been successful, and I'll give you mine:  loan servicers have made an absolute mess out of processing loan modification applications, to the point where homeowners simply cannot get their applications reviewed.  I suspect that if servicers gave these HAMP applications the attention they deserved, this program would be much more effective in helping those who need it.

Homeowners in need of a loan modification should continue to apply for HAMP, but need to create a paper trail in submitting their applications and consult an attorney if their loan servicer refuses to help them. 

BLOG POST:

http://maforeclosurelawblog.sherwinlawfirm.com/2015/05/hamp-extended-to-2016.html

WEBSITE:

http://www.sherwinlawfirm.com 

Short Sales

While I practice foreclosure defense--aimed at saving homes from foreclosure--I realize (and appreciate) that trying to hang on to a home is not for everyone.  Homeowners struggling to make their mortgage payments have the option of pursuing a short sale to avoid foreclosure.  In a short sale, the lender agrees to allow the borrower to sell the property for less than what they owe on it.  A short sale lets the homeowner walk away from the home without any liability.  Particularly, the homeowner will owe the lender nothing on the loan.

A short sale helps homeowners who simply want to walk away from their homes free and clear.  A short sale, most importantly, helps homeowners avoid the stigma of a foreclosure, and lessen the damages to a homeowner's credit score.

Homeowners considering a short sale should consult with a tax adviser before committing to such a sale.  Because a short sale requires the lender to forgive some of the outstanding debt, there are tax consequences involved with this form of loss mitigation.  

BLOG POST:

http://maforeclosurelawblog.sherwinlawfirm.com/2015/05/short-sales.html

WEBSITE:

http://www.sherwinlawfirm.com