Category: Foreclosure

Fannie Mae & Freddie Mac Considering Principal Reduction Policy

Fannie Mae and Freddie Mac could save $1.7 billion if they forgave principal on some troubled mortgages. Furthermore, The Federal Housing Finance Agency may make a decision in the next few weeks; whether to change its policy barring the two taxpayer-owned companies from performing such loan modifications. In fact, The FHFA has come under pressure

More Lenders Offering Plans with Debt Forgiveness

Non-government holders of delinquent mortgages are offering more payment plans with debt forgiveness. This is even as government-controlled Fannie Mae and Freddie Mac resist. Of the 116,153 mortgages modified in the fourth quarter of 2011, debt forgiveness takes 16 percent of loans. All of them held by private investors; 25 percent of loans held in

Florida Court of Appeal Reverses Foreclosure Ruling on Discovery

A 4th District Court of Appeal reversal of a foreclosure judgment spells a shift by the court toward friendlier decisions for homeowners. The Court of Appeal threw out a judgment granted to Deutsche Bank; finding there were discovery issues pending that the trial court did not honor. In fact, the trial judge ruled prematurely. That

Bank of America in Side Deal with Government on Mortgage Foreclosures

Bank of America, one of the five banks in the $25 billion settlement with the government over foreclosure practices, has struck a side deal. It will allow it to reduce penalties in return for bigger cuts to borrowers’ mortgage balances. Bank of America will make deeper and broader cuts than other banks; it will allow

Robo-Signing Claims could be Trouble for Bank of America in Litigation

Bank of America could be far from clear of securities claims over the robo-signing scandal under a ruling allowing a mortgage-backed securities investor to press allegations over suspect mortgage documents. A U.S. District Judge in Los Angeles refused to dismiss federal and state securities claims; alleging BofA and its Countrywide unit failed to properly assign

Florida Court of Appeal Rules Amended Foreclosure Action Should Have Been Allowed

The 2nd District Court of Appeal has entered an opinion in favor of a foreclosing bank. The opinion of the Court of Appeal states that the trial court should have allowed the plaintiff to amend the complaint in their foreclosure action; where the Plaintiff sought to amend its foreclosure complaint to add a count to

Florida Foreclosure Speed-Up Bill Dies as Session Ends

A controversial bill to speed up foreclosure did not pass as the lawmaker session ended. The proposal would have accelerated foreclosure proceedings on abandoned properties. And, it should make it easier for lenders to complete proceedings when both parties agreed to end the process. For consumers, the foreclosure bill would have reduced the length of

Homeowners in the 7th Circuit can Sue Banks over Mortgage Modification Malfeasance

Although the Home Affordable Mortgage Program doesn’t allow for private federal actions against banks over their implementation of the program, a homeowner can bring state law claims, the 7th U.S. Circuit Court of Appeals ruled. The Home Affordable Mortgage Program and its enabling statute do not contain a federal right of action. But, neither do

Real Estate Investors to get Foreclosure Aid from Obama

The Obama administration will extend mortgage assistance for the first time to real estate investors. That is to those who bought multiple homes before the market imploded. Landlords can qualify for up to four federally-subsidized loan workouts starting around May; as long as they rent out each house or have plans to fill them. This

High-End Mortgages Not Immune from Foreclosure

It has been five years since the housing market first began to crash and with many middle and working-class Americans still facing foreclosure; it may come as a surprise to know they’re not alone. Over 36,000 homes valued at $1,000,000 or more have been foreclosed on in 2011 alone. While this accounts for less than