Jump Legal Group

An Overview of New Mortgage Violations for Banks

Beginning on October 2, 2012, the United States banks that agreed to a multi-billion dollar government settlement were subject to new mortgage loan servicing requirements. The purpose of these requirements was to keep these banks from taking advantage of struggling homeowners during the foreclosure process. According to the terms of this settlement, banks are no longer able to engage in a number of deceptive mortgage loan service acts.

Robo signing

Robo signing refers to a dishonest banking practice in which lenders use fraudulent foreclosure documents or forged information to speed up the foreclosure process. As part of the settlement agreement with the government, banks are no longer able to practice robo signing. If a home has already been foreclosed upon using these practices, a foreclosure defense attorney may be able to use this evidence to help save an individual’s home.

Dual tracking

There are a number of cases in which homeowners were working with their banks to develop loan re-modification plans while the banks were simultaneously continuing with the foreclosure process. In these cases, the homeowners were unaware that the banks were still foreclosing on their homes. This banking practice is known as dual tracking and is now prohibited by the new settlement agreement.

Failing to provide principal reductions

Under the new compliance rules set out by the mortgage settlement agreement, banks are no longer able to deny refinance or principal reduction requests if homeowners actually qualify for these services. Before this provision, a number of banks would refuse to offer these services to qualifying homeowners and would simply continue with the foreclosure process. The terms of this agreement also ensure that homeowners will have one point of contact at the bank who can address their particular mortgage issues.

If you have been the victim of any of these prohibited bank-lending practices, Jump Legal Group can help. Our experienced foreclosure attorneys will analyze the facts of your case and use this information to help you save your home. Call (888) 865-8539 to schedule a meeting with our Columbus legal team.

Discover More About Forbearance Agreements and Bankruptcy by Visiting These Sites

When you are facing serious financial difficulties, it is normal to feel confused and overwhelmed. The following links will provide you with information about bankruptcy and forbearance agreements, two common options for debt resolution.

Take a look at the U.S. Courts website to learn more about the basics of bankruptcy.

The Fair Debt Collection Practices Act protects consumers from abusive, unfair, and deceptive practices by debt collectors.

Forbearance agreements are often used in mortgages. Visit this site for a definition of the term to learn more about whether it is a good option for you.

This site provides further details about forbearance agreements, such as the importance of negotiating the agreement and considerations that will be used in reaching an agreement.

Click on this link from Bankrate.com to learn more about rebuilding your credit after filing for bankruptcy.

If you are struggling to meet your financial obligations and have questions about your debt resolution options, call the Jump Legal Group at (888) 865-8539. We will work hard to help guide you through this stressful experience and find the best debt solution for your situation.

What is a Forbearance Agreement?

If you are struggling to pay your debts and are facing foreclosure, you have probably considered filing for bankruptcy. Before you make any decisions, you should consult with a foreclosure defense attorney who can help you explore all of your debt resolution options. One potential resolution is a forbearance agreement, but you should first understand what this type of agreement can and cannot do for you.

Definition

A forbearance agreement is a contract between a lender and borrower in which the lender agrees not to take legal action against a borrower who is behind in payments in exchange for a new agreement by the borrower. The borrower then has a set amount of time to bring delinquent payments up to date. It is not generally seen as a long-term solution, but rather as an option for borrowers facing temporary financial problems.

Negotiation

Forbearance agreements are reached when a lender and borrower negotiate a new deal for a temporary payment plan. Possible solutions include paying only the principal amount and spreading the interest for those payments over the life of the loan, making biweekly payments, and more. One benefit of forbearance agreements is that they can be tailored to meet the needs of the borrower, depending on the willingness of the lender to negotiate.

Considerations

One of the biggest considerations in whether a forbearance agreement is a viable option is the lender’s confidence in a borrower’s ability to repay the loan. The lender will also look at the severity of the borrower’s default and whether or not this has been a recurring problem.

Do you have any additional questions about forbearance agreements and debt resolution options? If you are having trouble meeting your debt obligations, contact the Jump Legal Group to learn how we can help you avoid foreclosure and other potential consequences. Call our Columbus office at (888) 865-8539 today to schedule a consultation.

Three Signs That Bankruptcy is the Solution to Your Financial Woes

Are your finances causing you constant anxiety? Are you kept awake at night thinking about how you are going to pay your bills next month? Bankruptcy can provide you with financial relief and allow you to get a fresh start, but it is not the answer for everyone. Continue reading to learn about some signs that bankruptcy may be the right solution for you.

Facing Foreclosure

Foreclosure is one of the scariest financial situations most people will face. When you file for bankruptcy, the court will issue an automatic stay that requires your creditors to cease most collection activities. The stay will delay the foreclosure proceedings, usually for a few months, unless your creditor gets the court to lift the stay or the foreclosure notice has already been filed.

Struggling to Pay Debts

Most people have months where unexpected expenses stretch their budgets a little more than they would like. However, if you are having trouble paying your debts on a regular basis, bankruptcy may be the best solution for your financial situation. Bankruptcy will probably not allow you to discharge all of your debts, but it is useful for eliminating credit card debt, medical bills, and other types of unsecured debt.

Receiving Creditor Calls

Creditors and debt collectors can be relentless when it comes to collection calls. While the Fair Debt Collection Practices Act prohibits debt collectors from using abusive or deceptive practices to collect from you, the phone calls will undoubtedly add stress to an already tense situation. An automatic stay puts a stop to this by preventing most creditors and debt collectors from contacting you.

To learn more about the bankruptcy process, contact the foreclosure lawyers at the Jump Legal Group. Our attorneys will help you explore all of your debt relief options and determine what is best for you. To set up a consultation, call our Columbus office today at (888) 865-8539.

Fighting Foreclosure: How to Keep Your Home [INFOGRAPHIC]

Are you facing foreclosure on your home? If so, it is essential that you know your borrower rights. The U.S. Consumer Financial Protection Bureau has recently implemented new legislation to stop unlawful practices by some of the nation’s largest lenders, including Bank of America, Wells Fargo, and JPMorgan Chase. To ensure that you exhaust all possible means to keep your home, consider consulting a foreclosure attorney who understands the complexities of foreclosure defense. With the help of an attorney, you can determine if your lender has been dealing in dual tracking, robo signing, or unauthorized refinancing refusals. This infographic underscores both the state of foreclosure in the United States and ways that lenders force borrowers into giving up their homes. Ohio currently ranks fourth among all states in the number of foreclosures, so please share this infographic with your Columbus area family and friends.