MORTGAGE ISSUES & FORECLOSURES
Request Your Legal Consult Here.
For over 3o years we have prevented and resolved problems related to Michigan and Ohio mortgage issues.
COMMON MORTGAGE ISSUES
A mortgage is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking a lien on the debtor’s property, with the condition that the mortgage is cancelled upon the loan being paid off by the debtor.
Mortgages are taken by banks, lenders or creditors, on all types of Michigan properties: rural, residential, commercial, and industrial.
Mortgages are secured by a promissory note requiring the debtor to make timely payments to the lender. Failing to pay timely or to comply with other mortgage provisions such as maintaining insurance or paying property taxes will allow a lender to place a mortgage in default. The most powerful remedey that a lender has as a remedy to obtain it’s monies back from the debtor is to declare a default and foreclosure on the mortgage.
Michigan foreclosures are either done judicially or by advertisement.
Common problems that create mortgages disputes are:
- The mortgage loan is sold and the new lender may not properly abide by the terms of the original mortgage;
- Tax or insurance escrows are miscalculated by the lender, increasing the debtor’s payment unexpectedly, thereby creating a debtor’s financial distress;
- A change in the debtor’s financial circumstances occurs and the lender refuses to work with the debtor to modify or temporarily adjust payments;
- A property owner experiences a “hiccup” in their finances because of a job issue of financial emergency. They get behind on their mortgage briefly, but then they are surprised to learn that they in default in their mortgage.
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.
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 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 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.
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.
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.
Legal provisions found in mortgages, lending agreements, and promissory notes are usually very complicated and are not to be taken lightly. Consider contacting seasoned legal professionals with years of mortgage and lending compliance experience just like David Soble and his legal team before you “go it alone.”
Call us today at 888.789.1715 to learn your rights and your legal options.
Is Your Mortgage
Causing You Serious Problems?
Call Us For Your Consult.
At 888.789.1715 or
Complete This Form.
MORTGAGE & FORECLOSURE VIDEOS
A Word Or Two About Your Rights And Mortgage Issues.
Frequently Asked Questions
Top Mortgage & Foreclosure Questions
When it comes to serious financial instruments such as your mortgage, don’t mess around with your family’s home, your credit, or your livelihood. The legal consequences of failing to act and take action for help can have a huge impact on your financial future.
Get the help you need to resolve your personal financial crisis efficiently. Time is NOT on your side – call us today.
Do I have to be out of my home immediately after it goes to foreclosure sale?
No. Generally, in most residential foreclosure sales, the homeowner has a six month period to remain in the home and redeem (pay off the loan) the property. No one will come to your home from the bank or the sheriff’s department to remove you or your belongings immediately after a sale date.
Please note: Make sure that you speak with an attorney before you sign ANYTHING after a foreclosure sale.
I want to modify my mortgage. The mortgage company has denied my request stating I make too much money. My hours have been reduced and I'm not sure what to do.
When it comes to applying for a mortgage modification, you should definitely work with a legal or financial professional. Modifications are legal documents that will amend the terms of your underlying mortgage. You usually get no more than “one bite at the apple” when requesting a modification, so how you properly present your documentation and paperwork to the lender is very important.
There are strict government requirements as to how you need to proceed with your home lender to obtain the mortgage modification your are seeking. If a modification is denied, you have limited time to assert an appeal.
Contact an attorney immediately as time is of the essence.
My mortgage was sold. Where do I make my payment to now?
Federal law requires that you are given written notice that your loan has been transferred from one lender to another. There is a time frame of 60 days where you cannot be penalized if a loan is transfered and you send your payment to the transferring mortgage company instead of the new mortgage company.
You should have received a ‘good -bye’ letter from the current lender and a “hello’ letter from the new lender indicating that the loan was transfered. If you are having problems, please make sure that you contact an attorney immediately. Once you are outside of the ‘grace period’ things could be made financially more difficult by your lender.
My mortgage was in foreclosure for over six years until I filed for bankruptcy. I did not reaffirm my second mortgage payment. Over 6 years later, the lender says I need to make payments immediately or face foreclosure. What do I do?
Unless the conduct of the other party was so outrageous, reckless or malicious, it is highly unlikely that a court would awared punitive or exemplary damages in a contract case. Compensatory damages are awarded instead. Courts most often awared compensatory damages covering the actual loss the nonbreaching party incurred as a result of the breach of contract. Compensatory damages replace the loss caused by the breach.
Why Clients Choose Us
Know the Difference.
Former Big Bank "Insider"
HigHest Peer and Client Ratings
24 Hour Response
30 +Years of Legal & Business Experience
Affordable & Approachable
Innovative & Creative solutions
Legal Matters We Handle
Real Estate Law
Real estate and finance law are their own legal specialties. So how do you determine which attorney you should work with...
Contracts regulate expectations between parties. Working without a contract is comparable to walking a high wire without a net.
David Soble has decades of experience as a 'big bank insider." He and his business management team are uniquely situated when it comes to handling our clients stressful financial...
We regularly and successfully litigate real estate and contract issues. While we prefer to first resolve our client's issues reasonably and amicably, we can and certainly will escalate....
For most people, their home, or other real estate, is the most valuable asset that they own. We're dedicated to protecting our clients' assets and ensure that their legal interests...
What Happy Clients Say…
Don’t take our word for it! We’re one of the best reviewed law firms in the community.
See hundreds of our reviews on Google, Avvo, Social Survey and Linked In.
"l was a client of Mr. Soble and he was very pleasant to work with and he took my case right away. He took time to answer all the questions and concerns that l had. When l called him, he got back to me that same day. We settled on an offer, and then received our check in a timely matter. l recommend the Soble Law firm for all your real estate needs because they take care of business."
Lisa S., Southgate, MI
The balance for one of my credit cards was over $14,000. In less than one week David and his staff were able to negotiate a new balance for less than $4000. We saved over $10,000. This was for just on one of our cards. I have to admit that my husband and I were skeptical at first, but they delivered. I now understand why the meaning behind the name. David and his staff are truly a Proven Resource!
"Attorney David Soble lives up to his firm's namesake, "Proven Resource." I appreciate knowing that when my clients need a diligent and responsive real estate or contracts attorney, I can easily make the referral to David, David is well worth having on your side."
Dino Lembesis, S. Lyon, MI
-Financial Adviser, Brighton, MI
Join Our Mailing List!
Get our print newsletter and other great information
Our Latest Blog Posts
While flipping is a great way to make a quick profit, this endeavor requires realistic expectations and well-laid-out plans for every step of the process in advance. All too often, wide-eyed first-time buyers entering the fix-and-flip market are excited by television...
Perhaps you have experienced your own frustration with your county’s recording office before. You read through all the necessary requirements for recording a deed or other real estate instrument with your county recording office, only to have it rejected and returned...
Technology was supposed to be the answer to the mountains of paper that go along with managing a business. But the digital files can form mountains just as high, or worse--get lost in the seemingly bottomless crevasses of your hard drive. Whether it is paper piles or...