Posted on: 24th Nov, 2009 03:19 am
Can courts waive off your mortgage debts? Well, yes, they can. Two recent legal decisions - one in a New York and another one in a Tampa, Florida have canceled homeowner's entire mortgage as the lender was unable to provide the mortgage paperwork to the court. Let's check out what happened in both the cases:
The New York case…
A New York resident was facing foreclosure this September. The borrower requested for a copy of the mortgage deed on his home. The lender, PHH Mortgage, was unable to provide the required papers to the court. Thus, the court waived off the entire mortgage debt. Do you want to know the amount waived off? It's $461,263.
The Florida case…
A Tampa based woman, facing foreclosure, requested her lender to provide her with the original mortgage paperwork. However, to her delight, she found out that the lender didn't have the deed. Thus, the foreclosure court stopped the proceedings and has threatened to cancel the entire debt if the lender couldn't produce the paperwork in the court.
(Source: "www.mainstreet.com/article/moneyinvesting/real-estate/new-way-fight-foreclosures?page=1")
These decisions by the foreclosure courts have left the mortgage lenders in shivers.
In 2008, the University of Iowa has concluded in a study that mortgage companies have the habit of misplacing important documents related to mortgage. The most surprising fact is that, it has been found that 40% of the time, the original note was misplaced by the lender.
Though it's not easy, but homeowners can go ahead and ask their lenders to produce the required paperwork if they are facing foreclosure. However, nothing's guaranteed and they would require the help of a good real estate lawyer.
The New York case…
A New York resident was facing foreclosure this September. The borrower requested for a copy of the mortgage deed on his home. The lender, PHH Mortgage, was unable to provide the required papers to the court. Thus, the court waived off the entire mortgage debt. Do you want to know the amount waived off? It's $461,263.
The Florida case…
A Tampa based woman, facing foreclosure, requested her lender to provide her with the original mortgage paperwork. However, to her delight, she found out that the lender didn't have the deed. Thus, the foreclosure court stopped the proceedings and has threatened to cancel the entire debt if the lender couldn't produce the paperwork in the court.
(Source: "www.mainstreet.com/article/moneyinvesting/real-estate/new-way-fight-foreclosures?page=1")
These decisions by the foreclosure courts have left the mortgage lenders in shivers.
In 2008, the University of Iowa has concluded in a study that mortgage companies have the habit of misplacing important documents related to mortgage. The most surprising fact is that, it has been found that 40% of the time, the original note was misplaced by the lender.
Though it's not easy, but homeowners can go ahead and ask their lenders to produce the required paperwork if they are facing foreclosure. However, nothing's guaranteed and they would require the help of a good real estate lawyer.
It is really great that many courts are taking the financial crisis into consideration. This is an unfortunate situation when someone's home becomes involved in a situation as simple as either keeping it or losing it. I believe that many issues must be looked at here. The responsibility of the mortgage foreclosure still falls on the borrower. Maybe a reexamination of spending habits and credit card use may be required. I am quite sure the bankruptcy court takes into consideration if the home can really afford the home before allowing the people to stay. In most cases unsecured credit and auto loans take priority over mortgage payments in time of financial crisis.
The main responsibility for the foreclosure is still the borrower. Perhaps an examination of patterns of consumption and credit cards can be used required. I am convinced that the bankruptcy court takes into account only if the home can really afford the house before allowing people to stay.
Millions of struggling homeowners have benefited with the Obama home refinance program and prevented their homes from being foreclosed. By qualifying for government assistance with the $ 75 billion Obama stimulus plan, borrowers can get 4.5 % interest rate home refinance loans that are sustainable in the long run and thus, save their home as well as money. But to derive the benefits of mortgage refinancing, you could be required to meet few important requirements.
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For my money, good advice is far more beneficial than platitudinous deliveries of well-known data.
How, when, where, why...these are the basics of the issue - not that "a few important requirements" must be met for a refinance.
How, when, where, why...these are the basics of the issue - not that "a few important requirements" must be met for a refinance.
According to the Making Home Affordable manual for servicers if you file for bankruptcy while you are on the 3 month trial payment plan, the servicer cannot deny you a permanent modification on the basis of the bankruptcy filing.
Franco, I am a foreclosure specialist. if you need let me know and I can get you in contact with someone who can help you.
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I recommend that anyone facing a foreclosure action contact a HUD-approved consultant and eliminate consideration of any of the "foreclosure specialists" who advertise here and elsewhere. Most will ask for upfront funds in excess of what you can afford to lose, and the end result will be that you end up losing your home to foreclosure. In other words, they dont' do as promised and you end up on the short end of the stick.
BUYER BEWARE!
BUYER BEWARE!
you should be aware with the legal terminology while entering any negotiation or making contract of any type otherwise you have nothing to get any support from anywhere!
Okay, Alvina.
try to get more knowledge about it and clarify all your legal doubts
It is right that when a person needs financial help or want to apply for mortgage then he have to face several formalities. Every company has different rules and terms that a person must consider to get mortgage.
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