Alabama Foreclosure: Settlement Release

Alabama Foreclosure:  Settlement Release

The settlement release is the final piece of the puzzle to settling a foreclosure case

To settle an Alabama foreclosure case you normally will need a consent judgment to set aside the foreclosure (if the foreclosure has already happened), a loan modification agreement, and the settlement release.

Let’s talk about the settlement release in a typical foreclosure case.

The release will explain what the parties are going to do going forward.

What you as the homeowner will do and what the mortgage company (Bank of America, Chase, Deutsche Bank, Wells Fargo, etc) will do and what Fannie Mae or Freddie Mac will do.

It will explain how much money the mortgage company and Fannie Mae/Freddie Mac will pay to you.

Now understand, they don’t like paying you money but when they get caught violating the law, this is normally part of the deal to get the case settled.

It will explain what these companies will do about fixing your credit reports.

Is it nothing or will they delete all the negative reporting?  Will they delete everything up to the date of the settlement and then start reporting from that point forward?  There are all sorts of options.

Word of warning — often the mortgage companies will not agree to change credit reporting.  This can be to your advantage as these companies are so inept that often they will then do false credit reporting.  This can allow us to sue them again for money damages.  We even warn them not to be stupid but its hard to “help” an arrogant company.  Here is an example of where we sued Bank of America several years after settling a case because they started false credit reporting.

It will also say that you and the companies are dropping your claims — “releasing your claims” — against each other.

This means you can’t sue these companies for what they have done in the past and they can’t sue you for anything in the past.  Now, if in the future either side breaks the law or the contract, that’s a whole new ballgame.

Now the case will be over — it is settled.

This brings the case to a close.  You will make your payments to the mortgage company (if that is part of the deal) per the loan modification agreement and you now no longer have a foreclosure on your record as it has been declared void in the consent judgment.

Our suggestion is be very very careful in dealing with the mortgage company.  Don’t give them any opportunity to cheat you.

And if you have questions, make sure you use RESPA letters/tools and other laws to get answers or to get your mortgage company to treat you right.

Contact Us.

If you have any questions, give us a call at 1-205-879-2447.

Or fill out a contact form. 

We would be happy to chat with you.

Best wishes!

– John Watts

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