You have options to sue the mortgage company both before and after an illegal foreclosure.

When facing a foreclosure, what is a short sale?

A short sale is when you’re facing a foreclosure and you’re wanting to avoid that foreclosure.  A short sale is where you agree with the bank to sell your house for less than what you owe. Here’s an example. Suppose you owe $200,000, and you get an offer for $180,000. That’s $20,000 short. You either have to come to the closing table with 20 grand or get your mortgage company to agree to allow this short sale to occur. The… (Read more)

What is a notice of error under RESPA?

One of the powerful tools you have under RESPA is the “Notice of Error” which is a letter you send to your mortgage company where you tell them they made an error and you give them a chance to fix it. “What are the possibilities after I send a notice of error?” Two options: They fix it which is great.  Problem solved. Or, they don’t fix it.  This leaves you some options: Do nothing Dispute again with a new notice… (Read more)

What Does Loss Mitigation Mean In A Foreclosure Context?

What is loss mitigation? Loss mitigation means to avoid a foreclosure. Within loss mitigation we have: Loan modification Short sale Deed in lieu of foreclosure Forbearance Principal reduction etc. What to do if you are struggling with making your payments If you are falling behind on your mortgage, it makes a lot of sense to ask your mortgage company to give you loss mitigation. Normally you will fill out a package — a loss mitigation package — and then the… (Read more)

What is RESPA in a foreclosure context?

RESPA is a federal law that tells mortgage companies what they must do, what they cannot do, and it also allows you to challenge errors that the mortgage company makes and allows you to request an extensive amount of information from mortgage companies that they used to refuse to give you. All of this can be the difference in not having a foreclosure and in losing your home or having to file bankruptcy to save your home from foreclosure. Before… (Read more)

“How do I use the new RESPA rules when doing a loan modification with my mortgage company?”

When you are dealing with the mortgage companies (Bank of America, Chase, Citi, Ocwen, Wells Fargo, etc) and you are trying to get a loan modification, it can be a nightmare. If not worse. Let’s talk about the typical process, then how this has changed under the new RESPA (Real Estate Settlement Procedures Act), and several practical steps you can take in order to improve your odds of being successful in getting a fair modification.   The old way of… (Read more)

For Ocwen — Where do I send a request for information or notice of error?

Under the new RESPA laws as of January 10, 2014, we have the ability to send a “request for information” or “notice of error” to our mortgage company. If you have Ocwen Loan Servicing, LLC, then you can look on the back of your bill and you will find the address to send these types of notices. You always need to verify it but as of now it looks like this is the address to use: Ocwen Loan Servicing, LLC… (Read more)