Consumer Power — New Help For Homeowners Facing Foreclosure — RESPA Rules Changed In January 2014

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Over the last 5 or 6 years we have primarily helped those who have already been foreclosed. It is a long battle to get the mortgage company to agree to set aside the foreclosure but sometimes we have been successful — other times the company will not agree. But we did not help as many consumers who have not yet been foreclosed because the law was — ironically — in some ways not as good before a foreclosure as it was after a foreclosure. And it was not good for anyone and the law has been getting worse.

That has now changed and so we are staying flexible and changing with it as it has been a long time since there was any positive change in the law in favor of homeowners.

Let me give you a little bit of summary about these new rules as this might be of help to you or your family or friends who are facing foreclosure. Really I should say if anyone is 30 days late on their mortgage these rules will be very helpful.

These new rules are the RESPA rules which went into effect in January 2014.

First, they apply to homewoners who are living in their home — so not rentals or investments.

Second, there is not much help after a foreclosure as these rules are focused on what can be done before a foreclosure to prevent it.

Third, there are very strict deadlines the mortgage company has to follow when it wants to foreclose. We doubt the mortgage companies will follow these deadlines — we intend to motivate them to follow the law by suing them in federal court.

Fourth, these new rules will (directly and indirectly) help prevent the normal games mortgage companies play when considering a loan modification including lying about receiving your loan modification package, giving you 48 hours to give more documents, etc.

Fifth, the rules give you the ability to demand information and documents from mortgage companies. They hate this and have always been reluctant to give any information. If they continue this, then they need to be sued in federal court to encourage them to become flexible and actually start — amazingly — following the law.

Finally, when the mortgage companies break these new laws they can be sued in federal court and have to pay you damages as well as attorney fees. This should be a nice kick to their backside to get them moving. 🙂

There is a lot more detail and we will be writing articles — shooting videos — and probably doing a webinar on these new laws but I hope this gives you a flavor of some of the protection that is now out there that we didn’t have before January. (Here is one article on using RESPA to help stop Alabama foreclosures).

As I mentioned abover, anyone who is 30 days late on their mortgage should contact a foreclosure defense lawyer to find out their options — if you live in Alabama we will glad to chat with you.

Thanks for taking the time to read this as this can help you or your friends and family who are behind and facing foreclosure.

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