Miami Foreclosure Lawyer Blog

Problems with Countrywide Financial mortgage documents could spell trouble for Bank of America as foreclosure defense lawyers in Miami and elsewhere continue to question the practices of banks and their attorneys, Raw Story reported.

The "robo-signing" controversy, in which bank officers and their attorneys are accused of signing tens of thousands of foreclosure actions without proper verification of ownership and other critical information, has already led to investigations by authorities in most states. In many cases, foreclosure actions have been delayed. One Florida resident looking to help stop foreclosure, is even seeking the return of his property. In other cases, a homeowner may be able to negotiate away a deficiency judgment or seek a cash settlement with the bank.

Banks and law firms involved include the Law Offices of David J. Stern; Law office of Marshall Watson, Shapiro & Fishman; JP Morgan Chase, Bank of America and GMAC.

Testimony in a New Jersey foreclosure case revealed it was customary for Countrywide to keep the original mortgage documents. That means the documents were not properly transferred to other banks, which then used the loans to create packaged securities for sale on the investment market.

Such a scenario would further increase the leverage of those fighting foreclosure; in some cases, foreclosure could be stopped by requesting to see the mortgage documents. As we reported earlier this year on our Miami Foreclosure Lawyer Blog, the Florida Supreme Court ruled banks must do a better job of proving ownership after many routinely filed "lost note" claims as part of the foreclosure process.

An estimated 96 percent of Countrywide mortgages were packaged and sold as securities, apparently improperly.

Continue reading "Countrywide mortgages a huge headache for Bank of America as homeowners gain ground in stopping foreclosure" »

The Miami Herald reports that a Pinellas County case is the first known case of a homeowner attempting to reclaim his home after it was foreclosed upon and sold. But it is unlikely to be the last.

As our foreclosure defense lawyers in Miami have been reporting, the foreclosure fraud by banks is now turning the tide in favor of homeowners looking for help stopping foreclosure. Firms like the Law offices of David J. Stern, Law office of Marshall Watson, Shapiro & Fishman, have come under fire for the questionable handling of thousands of foreclosure cases on behalf of numerous banks, including JP Morgan Chase, Bank of America and GMAC.

In many cases, a homeowner does not want the home back. But a deficiency judgment may be stopped and in some cases a monetary award may be pursued if you and your family were treated unfairly during the foreclosure process.

In this case, the 42-year-old father of three said he wants his home back, claiming he never knew he was facing foreclosure in 2008 until the proceeding was over. Bank of America has since sold his home to another couple, who thought they bought the property free and clear. Legal experts agree in might be the first such case, but it won't be the last.

Robo-signed documents, false affidavits and failure to notify defendants are just a few of the ways banks and their lawyers are accused of mishandling foreclosures. A homeowner who seeks legal advice in such cases, could negotiate from a position of strength.

Bank of America filed foreclosure action on the property in Feb. 2008. The homeowner had moved to California and was leasing it to a tenant. The case was rushed through the foreclosure process in just two months.

The homeowner spent months trying to negotiate with the bank for the return of his house. But it wasn't until reading the current issues facing banks and their law firms that he decided to consult a lawyer and restart the battle against Bank of America.

Continue reading "Florida reverse foreclosure lawsuit the first of its kind -- likely not the last" »

MSNBC has published another report on the risky world of home-loan modifications, detailing instances where banks failed to live up to their end of the bargain, pushing homeowners further into debt. There are other options for those looking to stop foreclosure in Miami or elsewhere in South Florida.

The danger of home loan modification in Miami is that it won't help if you are underwater on your mortgage and it can end up costing you your home. A Miami foreclosure defense attorney can assist you with considering all of the options and determining the best course of action for your particular situation.

Meanwhile, statistics show that only about one-third of the 1.4 million homeowners who have enrolled in the government's payment reduction program have seen their mortgage payments reduced. And lawsuits have been filed, which accuse banks of breach of contract under the government's Home Affordable Modification Program. The suits contend that banks are reverting mortgage payments back to the original higher amounts, even after homeowners make all of the reduced payments during a trial period, as required for a permanent reduction.

In other cases, banks are being accused of refusing to honor loan-modification agreements to which they have already agreed.

The government reports in some instances banks were encouraged to offer trial modifications based on interviews about a homeowner's income and expenses. They then were permitted to conduct a more thorough review of the paperwork before making a final decision. In such cases, homeowners may have made trial loan payments, only to be rejected for permanent modification.

We hope it is clear to everyone at this point, that banks are not on your side. By contacting a Miami foreclosure defense lawyer, you will be negotiating from a position of strength. It is not in a homeowner's best interest to attempt to take on a bank without qualified and experienced legal help.

Continue reading "Consulting foreclosure defense lawyer best option when considering home loan modification in Miami" »

Federal authorities have launched a criminal investigation into the mishandling of property seizures by banks and their attorneys, according to the Miami Herald.

As our Miami foreclosure defense attorneys continue to report, the "robo-signing scandal" has given property owners an even better chance of stopping foreclosure in South Florida or otherwise protecting their rights as a homeowner.

At issue are thousands of foreclosure actions taken by banks, their employees, and their attorneys, without adequate documentation of mortgage ownership. Most mortgages had long since been packaged and sold as investments and banks routinely filed missing paperwork claims with foreclosure actions. Testimony from bank employees, which was elicited by a Florida foreclosure defense lawyer, revealed that employees were verifying the validity of thousands of cases a month. However, they had no knowledge of the ownership of the properties involved or the validity of the foreclosure action.

The Federal Bureau of Investigation is now investigating whether the financial industry broke criminal laws. Attorneys General in all 50 states are also investigating whether banks acted criminally in cutting corners while seizing millions of homes.

And, in a separate investigation, the Federal Housing Administration has found disparities in how five major lenders have responded to distressed homeowners. As we frequently report on our Miami Foreclosure Lawyer Blog, options for struggling homeowners include federal mortgage assistance programs, strategic default, short sales and bankruptcy. Still another option is attempting to negotiate with the bank. But, as this investigation indicates, and as any homeowner who has tried will tell you, banks have been notoriously unresponsive. Hiring an experienced and aggressive foreclosure defense lawyer in Miami will permit you to negotiate from a position of strength and can help protect the future financial well-being of you and your family.

Continue reading "Help is here for Miami homeowners facing foreclosure as state and federal government probes bank practices" »