Bankruptcy, Foreclosure & Loan Modification Blog

Avoiding Debt Collection Scams

It’s common for those end up filing for bankruptcy to endure months (or years) of calls and letters from debt collectors prior to making the decision to file for bankruptcy. While lenders are allowed to partake in legal debt collection efforts, the Fair Debt Collection Practices Act establishes rules which must be followed by debt collectors. For instance, debt collectors shouldn’t engage in threatening or intimidating behavior, and if the borrower asks for written proof of their debt, it must be provided....
Continue Reading »

Final Act, scene II…

Here are three more affirmative defense that may arise out of violation of the Unfair and Deceptive Trade Practices Act: 1. If your lender did not provide you with statements of the escrow account associated with your loan transaction, then an affirmative defense may exist. 2. If your lender failed to pay property taxes or insurance premiums for the subject property, there may be an affirmative defense....
Continue Reading »

And for the final act…

The third Act that can give rise to affirmative defenses in a mortgage foreclosure is the Unfair and Deceptive Trade Practices Act. Courts can hold lenders accountable under the Unfair and Deceptive Trade Practices Act and can also be made to pay punitive damages and attorneys’ fees. Some examples of violations include: 1. If the lender obtained a yield spread premium (YSP) that was excessive or not properly disclosed. 2. If the lender charged excessive fees or required the payment of fees to parties not entitled to receive any fees....
Continue Reading »

More from RESPA

Here are two (2) more affirmative defenses that come from violations of the Real Estate Settlement & Procedures Act, or RESPA for short: 1. If a lender accepted fees, kickbacks or other items of value in exchange for settlement services and or split fees and received unearned fees for services that the lender did not actually perform, there may be an affirmative defense for a RESPA violation. 2. If the lender did not provide annual escrow disclosure statements for each year of the mortgage since its inception, an affirmative defense may exist for a RESPA violation....
Continue Reading »

From TILA to RESPA

   The Real Estate Settlement & Procedures Act, or RESPA for short,  is another possible source of affirmative defenses.  RESPA is part of the U.S. Code and can be found at 12 U.S.C. Section 2601.  To begin: 1. An affirmative defense exists if a lender, at the time of the loan closing, charged a fee for the preparation of the truth in lending uniform settlement and escrow account statements....
Continue Reading »

Time to play defense…affirmatively

There are several affirmative defense that can be raised against a foreclosure action. One such affirmative defense that can be raised is for a violation of the Truth in Lending Act or TILA. The Truth in Lending Act is part of the United States Code: 15 U.S.C. Section 1601 et seq. as well as Regulation Z of 226 etseq. Three of the numerous possible affirmative defenses for violations of TILA are:...
Continue Reading »

What is Mortgage Loan Forbearance?

Mortgage Foreclosure is a complex process that involves many different aspects and elements. Consequently, foreclosure defense is an area of law that encompasses a variety of legal issues. There are several different workout options that banks, lenders and borrowers must be aware of and consider. Sometimes lenders will offer a mortgage loan forbearance to a homeowner who is experiencing a temporary or short-term hardship....
Continue Reading »

Bankruptcy and Foreclosure Defense

In some situations bankruptcy and foreclosure defense can be used together to create the best option for borrowers. There several reasons why the a one-two punch works well. For example, regardless of whether the mortgage is for a primary residence or an investment property, the filing of a chapter 13 bankruptcy will stop foreclosure proceedings. Also a chapter 13 bankruptcy can allow a borrower to pay their monthly mortgage payment and repay the arrearages over either a 3 or 5 year plan....
Continue Reading »

What if I want to keep my house?

There are many who do not want to leave their home even if they are underwater, meaning the amount owed on the mortgage is greater than the value of the home and property.  One option for borrowers who really want to keep their house is a loan modification....
Continue Reading »

Strategy…strategy…strategy…

For many borrowers, a strategic default is a good option. A strategic default is when the borrowers decides to stop making their mortgage payments. A strategic default generally is used for properties that are “under water”, meaning that the value of the property is lower than the debt owed. Why a strategic default? There are many reasons. For example, many banks will not consider loan modifications or other workout options unless the borrower is in default, meaning that the borrower has missed mortgage payments....
Continue Reading »

Pages

  • Newland & Newland LLP, Attorneys, Arlington Heights, IL
  • Lawyer.com