Mortgage Disputes

Mortgage contracts contain numerous provisions that regulate the debtor- lender relationship. Debtors, who are often homeowners, investors, and business owners, are often not aware of these provisions until it is too late, when  their lender places their loan in default.  While there are federal laws that highly regulate the mortgage business, states such as Michigan afford debtors specific legal rights to protect them against unscrupulous lenders and defend against unwarranted foreclosures.     As a result,  one’s rights under a mortgage  can be difficult to understand.   Debtors must be very careful on how they interact with their lender, bank or creditor so as not to waive their legal rights.  

Mortgages are legally binding agreements and have a complicated and lengthy legal history.  Whether you are a  homeowner or business owner,  it is always best to have an attorney review your loan agreements BEFORE you sign your mortgage.   The mortgage relationship is a long term one and it is in one’s best interest that when you buy or refinance a property, that you  involve a real estate attorney like David Soble to help you navigate through the federal and state laws governing mortgages.   This can help prevent later mortgage disputes that may occur at a later date, and avoid the stress of a foreclosure action.  

Call us before you sign at 888.789.1715. 

FORECLOSURE ALTERNATIVES:

Short Sales

A Short Sale occurs when your mortgage servicer agrees to accept less from the sale of your home than what you actually owe on your mortgage loan. In order for your mortgage servicer to agree to this type of sale, you must be delinquent on your mortgage payments and be willing to move to a more affordable home. When you have a Short Sale offer from a potential buyer, you will need approval from your servicer to proceed with the sale. Once you receive that approval and the sale closes, you will not be required to pay any remaining balance on your mortgage loan, and you may even receive cash to help with moving expenses.

Deed in Lieu

With a deed in lieu of foreclosure, you voluntarily transfer title to the property to the lender in exchange for forgiveness of your mortgage debt and all associated costs, such as late fees, legal charges, and past-due interest payments.

Partial Claim

A partial claim is when the mortgage insurance company on your loan lends you the money to bring your loan current. If your loan has mortgage insurance, the insurance company stands to lose if you default. To help keep you in the house, the mortgage insurance company may help you get current on the loan. Many mortgage insurance companies have trained personnel available to help people who are having trouble with their mortgage payments.

Straight Modification

Straight modification is an agreement that actually changes the term of your loan. The modification could lower the interest rate and payments to an amount you can afford. The lender could also use the modification by adding the missed payments to your current balance. This could increase your monthly loan payments so you would need to prove you can afford to pay the higher payment without defaulting again.

Forbearance

Forbearance is a written agreement where you send a lump-sum amount to the lender. Each month thereafter you pay your regular payment plus half of your mortgage payment. For example, if your regular mortgage payment is $600 per month, your initial lump-sum payment might be $500 to $800. Then each month thereafter until you are current, your payment would be $900 ($600 plus $300). Most forbearance plans are for three to six months.

Permanent Hardship

A permanent hardship occurs when you can no longer afford to make the mortgage payments. Your mortgage company may agree to delay the foreclosure on your house for up to 120 days and give you time to sell the house. If, when you sell the house, you get less than what you owe on the house, the lender may forgive (not make you pay) the difference.

Quitclaim Deed 

A quitclaim deed transfers whatever interest you have in a particular piece of property. By accepting such a deed, the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.