Mortgage companies, such as Bank of America, Chase, Deutsche Bank, Wells Fargo, etc., are commonly sued for illegal conduct that comes before, during and after a foreclousure in Alabama. Here are some examples which we will expand upon in later articles:
Lying (fraud) about a specific foreclosure date being postponed or rescheduled (this violates Alabama law and also the Fair Debt Collection Practices Act when it applies);
Lying about the identity of the owner of the mortgage note which violates… (Read more)
The FDCPA (Fair Debt Collection Practices Act) applies to debt collectors so most consumers, and most lawyers, think it does not apply to mortgage companies. After all, a mortgage company is not a debt collector, is it?
It may be.
Definition of a debt collector under the FDCPA
A company that receives your debt from some other company and the moment it receives your debt, the debt is allegedly in default.
Let’s break this down with an example of Bank… (Read more)
It is a common question that we are asked –
“Why am I being sued by the Law Firm of Sirote & Permutt after my mortgage company foreclosed on me?”
There are dozens of these lawsuits filed by Sirote & Permutt on a weekly basis in Alabama against homeowners after a foreclosure.
This is called an ejectment suit or an eviction suit. The idea is that the mortgage company, or more commonly Fannie Mae or Freddie Mac is suing to… (Read more)
You have been foreclosed in Alabama and now you have been sued by the law firm of Sirote & Permutt or some similar firm in an “ejectment” lawsuit in a Circuit Court of Alabama. Suddenly the mortgage company files a “Motion for Summary Judgment” telling the court that there are no material issues of fact in dispute and the law is clear that the mortgage company should win.
And by “win” we mean that you will be ordered out of… (Read more)
This is a situation that is growing — you are facing foreclosure on your Alabama home that is underwater (you owe more than it is worth) and you are not sure you want to keep your home. The time pressure of the foreclosure is growing on you and you are getting conflicting advice. What are your options?
First Option — Let the Foreclosure Happens
This is the option of doing nothing — you let the foreclosure date approach and then… (Read more)
In Alabama, your right of “redemption” is the right that you have, under certain circumstances, to redeem or buy back the property from the current owner.
You normally need to move out within 10 days of the Alabama foreclosure (non judicial) sale to preserve this right to redeem and you also will have to pay the new owner back for the amount of the foreclosure sale and necessary improvements along with interest.
As a practical matter, few people can afford… (Read more)