Articles Posted in Mortgage/Foreclosure


If you’re facing a foreclosure in Alabama, one option is to do what is called a deed in lieu of a foreclosure. In essence, this means you give the deed to the mortgage company instead of the mortgage company taking the deed through a foreclosure.

Here’s an example to illustrate this — Bob and Jenny and Wells Fargo.

Bob and Jenny have a house in Birmingham and they owe $300,000 on their mortgage to Wells Fargo. They have encountered financial difficulties and have not been able to get a loan modification and they are now facing a foreclosure.


If you are facing a foreclosure in Alabama, one option to avoid a foreclosure is to do a “short sale” which is where you sell your home for less than what you owe the mortgage company.

Why is it called a short sale?

Because you are looking to sell your house for less than what you owe.


If you are facing foreclosure or have already been foreclosed, you need to think very seriously about whether it makes sense to fight while staying in your home. I’m all about wanting to fight the mortgage companies but it has to be done in a smart way and in a way that makes financial sense for you as the homeowner.

We only fight mortgage companies when the mortgage company has violated the law. So in this discussion we take it as a given that the mortgage company has done something wrong to you.

So you have a legal right to fight back to either stop the foreclosure or to perhaps undo the foreclosure.


There was a recent decision relating to Nationstar which was sued under the FDCPA and RESPA and we thought it was an interesting opinion so we did a video review of the actual opinion. You can read the decision (Dynott v. Nationstar) and we have copied it below for your convenience.

If you have questions, feel free to give us a call at 205-879-2447 or contact us through our website

John Watts


Douglas Jacobs has an interesting article about seven myths that he sees as a California bankruptcy attorney. Specifically myths about modifications — bankruptcies — and foreclosures.

I agree, from an Alabama perspective on foreclosures, that doing a modification will not stop a foreclosure unless the mortgage company tells you. But then they often lie and we end up suing them after the foreclosure.

And modifications are not something that you are entitled to — more common to be denied than accepted.


There is a lot of news right now about foreclosures and potentially wrongful foreclosures. More and more lawyers (and non lawyers) are claiming they can help.

The non lawyers will give you a “loan audit” or “loan analysis” and tell you all of the laws that were violated in your loan. All of the ones I have seen have been worthless. But not free — typically a thousand or two thousand dollars.

The lawyers all claim to be “Alabama Foreclosure Defense Lawyers” or “Birmingham Foreclosure Defense Attorneys.”


We recognize it is a difficult decision when you are facing a foreclosure, or have already been foreclosed, and you have to decide whether to make decisions and take action with a lawyer or without a lawyer.

There is no right or wrong answer to every legal issue you face.

We do suggest, however, that foreclosure type cases can be some of the more complicated cases and may not be the right legal matter to handle yourself. We just posted an article that discusses some thoughts and ideas about hiring an Alabama foreclosure defense lawyer or handling it yourself (“pro se”).


You can read the actual opinion and our analysis on a wonderful Alabama Supreme Court order that clearly establishes that, under most mortgages, a letter must be sent to you before the mortgage company accelerates your mortgage.

This is something that we have been arguing and that we always believed but there was some doubt as to which way the court would go. We are thankful the Alabama Supreme Court simply applied the plain language of the contract (mortgage) and did not accept the mortgage bank industry’s argument to ignore contracts.

Our Alabama Supreme Court is a conservative court that does not intend to “legislate” from the bench — instead it simply desires to apply the law as it is written and enforce contracts as they are written.


Ever wonder why it seems the mortgage foreclosure disaster is not getting better? When Freddie Mac and Fannie Mae say they are on the side of the consumers?

Read this article and be disturbed….

Freddie Mac, a taxpayer-owned mortgage company, is supposed to make homeownership easier. One thing that makes owning a home more affordable is getting a cheaper mortgage.


You can follow the link below to read about our client who was sued by Freddie Mac for ejectment (or eviction) after a foreclosure by CitiMortgage.

Many Alabama consumers, unfortunately, just give up even when they have valid claims and defenses.

Our client, however, felt the foreclosure was wrongful and improper and she decided to take action.

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