Articles Posted in Foreclosure

In July 2016 the Consumer Financial Protection Bureau (CFPB) released a report titled Guiding Principles for the Future of Loss Mitigation. The report lists several “lessons learned” from the financial crisis and makes recommendations to mortgage lenders and servicers for a post-MHA era. One specific suggestion is the permanent adoption of the loss mitigation “waterfall” model. The…

Many people who call our office want to save their homes from foreclosure. In other cases, a foreclosure has already taken place. There are many different reasons why a foreclosure may be scheduled, ranging from market conditions to change in homeowner circumstances. One of the lingering effects of the foreclosure crisis is the rise of the deficiency…

Nationally, foreclosures are way down, but not in the District of Columbia. According to CoreLogic’s National Foreclosure Report for June 2016, the U.S. foreclosure inventory declined by 25.9% and completed foreclosures declined by 4.9% compared with June 2015. The number of completed foreclosures nationwide decreased year over year represents a decrease of 67.5% from the…

Which bankruptcy should I file? Chapter 7 is quick and easy, but Chapter 13 allows repayment of missed mortgage payments. Whether you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy, the “automatic stay” goes into immediate effect. The automatic stay prevents your creditors from taking any steps to try to collect money from you. Both Chapter 7…

This article addresses how to write a financial hardship letter for loss mitigation, whether you’re seeking a modification, deed-in-lieu of foreclosure, or short sale. If you fall behind on your mortgage, you will have to submit a lost mitigation package to avoid foreclosure. Part of the loss mitigation package is the financial hardship letter (or “letter…

With just 97 completed foreclosures, the District of Columbia had the nation’s lowest annual number of completed foreclosures in January 2016. But Washington, D.C. also had the fourth highest foreclosure inventory rate in January 2016 at 2.3 percent. So why is my mortgage company suing me in Washington, D.C.? The answer is: because now they have…

On March 16, 2016, Fannie Mae updated its Foreclosure Time Frames and Compensatory Fee schedules to recognize that DC is now a judicial foreclosure jurisdiction. The table specifies Fannie Mae’s maximum number of allowable days between the due date of the last paid installment (or “LPI”) and the foreclosure sale date. Fannie Mae had originally…

Dealing with unmanageable debts can completely take over your life. You don’t get that many opportunities in life to start over. But you can get a second chance at life with bankruptcy. Worrying about losing your car or home can keep you up at night. And debt collectors can make you afraid to answer your phone.…

Since the subprime mortgage meltdown of December 2007 to June 2009, mortgage modifications have saved many homeowners from foreclosure. Yet many illegitimate companies and individuals have preyed on people seeking modifications. My advice to you is to beware of offers to modify your mortgage for a fee. On February 17, 2016, a federal grand jury…

If you’ve been holding off filing bankruptcy, there are some clear indicators of when you should actually throw in the towel. When should you file for bankruptcy? Lee Legal offers free consultations to both businesses and individuals who are weighing their options. When Should You File for Bankruptcy? Bankruptcy is not appropriate for every situation.…