You have options to sue the mortgage company both before and after an illegal foreclosure. The federal law RESPA is very powerful in stopping foreclosures but there are strict time limits. Make sure you take immediate action if you want to save your home but beware of scams, especially out of state companies and out of state lawfirms that claim to be able to help you in Alabama. All we have seen are scams so do your due diligence before you hire anyone. We have a wealth of information (videos and articles) to get you started here. Best wishes! John Watts
“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:… (Read more)
“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 between not having a foreclosure and in losing your home or having to file bankruptcy… (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. You are trying to get a loan modification (one form of loss mitigation) so that you can avoid a foreclosure. Let’s talk about the typical process, then how this… (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 front or back of your mortgage bill and you will find the address to send these types of notices. You can also go to… (Read more)
4 steps to success in getting a loan modification and avoiding foreclosure If you are falling behind on your mortgage, or you are even facing foreclosure, then you need to take immediate action before it is too late. Often the solution is to get a “loan modification” so your payments will be affordable. (Loan modification is one form of loss mitigation). Unfortunately many people do not understand the steps to take to be successful in getting a loan modification. [NOTE: … (Read more)