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By Omar J. Arcia, Esq.Foreclosure Defense and Bankruptcy Protection Attorney From December 2007 to present, South Florida has experienced a 400 percent increase in foreclosure filings, and 1 out of every 197 homes in the United States is undergoing a foreclosure proceeding. In view of these staggering statistics, most homeowners simply give up the fight [...]
There are various opinions on what caused the real estate crisis. Some blame the reckless lenders and underwriters, while others blame borrowers for taking on more debt than they could afford. Whichever side is to blame, one thing is becoming increasingly evident – traditional loan modification is no longer a viable option for homeowners.
Most mortgage lenders and servicing companies are taking advantage of the public’s sense of desperation and lack of information to strong-arm homeowners into signing one-sided loan modification agreements, or giving up valuable legal rights they may possess against their lender.
In previous articles, we have outlined the pitfalls and disadvantages of most home loan modifications. Some of these include higher principal balances, the length of time required to complete the loan modification process, the temporary nature of a loan modification, and the high rate of default after a modification. However, there is a very limited set of circumstances under which a loan modification can work in favor of the homeowner.
Predatory lending is when a lender imposes abusive, unfair and sometimes illegal loan terms on borrowers, without regard for the borrowers’ ability to repay the loan. When two or more of the following factors are contained in a mortgage loan transaction, the subsequent forensic audit performed on that transaction usually reveals serious violations of federal and state lending laws.
