Happy Holidays From Fannie Mae & Freddie Mac–No Evictions During The Holiday Season

The GSEs said evictions will not be enforced from December 17, 2014, until January 2, 2015, for single-family homes that have been foreclosed on, meaning that families living in those homes will be able to continue to live there during that two-week period. “Today’s announcement will bring some holiday relief to borrowers who went through foreclosure and were preparing to move,” said Chris Bowden, SVP of REO at Freddie Mac. “We strongly urge homeowners with financial challenges to start the … Continued

INCORRECT LEGAL DESCRIPTION LEAVES BANK UNSECURED CREDITOR

A Chapter 13 trustee and the debtor sought to use the strong arm powers of a hypothetical bona fide purchaser of real estate to avoid a mortgage based on the fact that an incorrect legal description was attached to the mortgage and it was indexed in the land records using the incorrect description. Under Section 544 of the Bankruptcy Code, a trustee may avoid a mortgage that is voidable by a hypothetical bona fide purchaser under state law. Under applicable state law, … Continued

FREDDIE MAC ANNOUNCES NEW FORECLOSURE PREVENTION GUIDELINES, REVISIONS

Government-sponsored enterprise Freddie Mac has announced a set of new loss mitigation and foreclosure prevention guidelines and revisions in Guide Bulletins 2014-19 and 2014-20 that include a new deeds-in-lieu of foreclosure incentive, increased foreclosure timelines, and additional foreclosure relief for service members and their dependents. Freddie Mac is offering a supplemental incentive of up to $7,000 for new borrower evaluations for deeds-in-lieu of foreclosure that are conducted on or before December 1, 2015. Borrowers in Connecticut, District of Columbia, Illinois, Maryland, Massachusetts, New … Continued

MORTGAGE FRAUD EXAMINERS WARNS: FORECLOSURES HAVE INCREASED FOR TWO MONTHS STRAIGHT

Foreclosure filings, including default notices, scheduled auctions and bank repossessions, increased 15% from last month but are still down 8% from a year ago levels, RealtyTrac’s October Foreclosure Market Report said. This is the largest month-over-month increase since U.S. foreclosure activity peaked in March 2010. In October, a total of 59,869 properties were scheduled for foreclosure auction during the month, up 24% from the previous month and up 7% from a year ago to the highest level since May 2013. … Continued

Don’t Be Fooled By Scammers The Note Is Still Enforceable After The Dismissal of Foreclosure Action

Unsuccessful mortgage foreclosure actions have resulted in a new wave of “quiet title” lawsuits brought by borrowers attempting to have their notes and mortgages deemed void and unenforceable. However, the federal district and state appellate courts of Florida considering the issue have uniformly rejected the theory that a failed foreclosure attempt allows mortgagors to obtain their property free and clear of the lien where the mortgage and note have not been paid in full. In recent cases such as Matos … Continued

PRETENDER DEFENDERS KEEP RIPPING OFF HOMEOWNERS

The long arm of the law is reaching out to a Florida attorney as New York’s attorney general accused a Florida law firm of fraudulently marketing itself. New York Attorney General Eric Schneiderman said in a statement Wednesday that he was suing lawyer Gennady Litvin and two firms he’s involved in: Litvin Law Firm and Litvin, Torrens & Associates. Litvin, a University of Miami law graduate, is based in New York and Fort Lauderdale and has a Florida Bar license. … Continued

JUDGES SANCTIONING FORECLOSURE DEFENSE ATTAORNEYS FOR FRIVOLOUS FORECLOSURE DELAYS

http://www.housingwire.com/articles/29300-michigan-attorneys-face-sanction-for-frivolous-foreclosure-delays Attorneys in Michigan who file what are ruled frivolous complaints or requests for delays in foreclosure or eviction cases can be sanctioned. In a note to clients, Ballard Spahr warns that a Michigan appellate court ruled in February that baseless filings intended to delay those procedures can result in the borrower’s attorney facing sanction and fines. “In Edgett v. Flagstar Bank, after multiple reviews of the borrower’s loan modification requests, the bank completed foreclosure. The borrower then filed a four-count complaint … Continued

ATTORNEY ADMITS FORECLOSURE DEFENSE IS NOT ABOUT WINNING

Submitted by Rusty Collins on August 18, 2014 – 9:17am Rusty Law In Foreclosure Defense, if you take a case to trial, you play for a fumble.  You are not going to win the game, but you may score something else, like a mortgage modification or a short sale.  You get to ask the other side to prove their case, and in doing so, they may reveal weaknesses, such as unverified information or lack of authority to foreclose. You cannot … Continued