Information on Ohio Foreclosure Defense, Foreclosure Fraud, Homeowners Facing Foreclosure, and the Recent Federal $25 Billion Mortgage Settlement.

Video: Bank of America forecloses on home after they said they wouldn't. Jump Legal files a class action lawsuit against BOA on behalf of Central Ohio family.

2/10/2012 Important Info on the $25 Billion Federal Mortgage Settlement

Who is participating in the settlement?

All states except Oklahoma (Oklahoma reached its own settlement). The five servicers are Bank of America, JPMorgan Chase, Citibank, Wells Fargo and Ally Financial. Smaller mortgage companies ones are expected to join later. If you live in Ohio we can help you determine if you qualify.

Who may get help under the settlement?

Borrowers whose loans are owned by the participating banks and those who suffered foreclosure by one of these banks. Certain homeowners who suffered foreclosures from 2008 through 2011 and some homeowners who owe more on their mortgage that their home is worth are also eligible. Our office will help you determine if you qualify and streamline your application process.

If I take this payment, can I still sue if I feel if I have been wronged by my mortgage company?

Yes, either as an individual or as part of a class action. This is very important to understand because our law firm has been successful in securing cash settlements for clients who have been wronged by their mortgage lender. You may be entitled to a settlement which far exceeds any amounts suggested in in the recent federal settlement. In particular, if you have been making payments on a loan modification and were still foreclosed on by your mortgage company, we may be able to re-instate your loan modification and secure a cash settlement for you. Call us at 614-556-4522 or send us a confidential email if you would like to set up a free telephone or office conference with one of our foreclosure defense and litigation attorneys.

How will $25 billion be spent?

 The terms include:

•At least $10 billion for reducing principal on loans for borrowers who are either delinquent or at imminent risk of default and are underwater meaning they owe more on their mortgages than their homes are worth. If you are behind on your mortgage payments, please call us at  614-556-4522 or email us to have your case reviewed by our law firm at no cost to you.

•At least $3 billion for refinancing loans for borrowers current on their mortgages and underwater.

•Up to $7 billion will go toward other kinds of assistance, including forbearance of principal for unemployed borrowers, anti-blight programs and short sales.

 •$1.5 billion will provide cash payments to borrowers whose homes were sold or taken in foreclosure between Jan. 1, 2008, and Dec. 31, 2011, and who meet other conditions. Officials estimate up to 750,000 borrowers could receive checks for $1,500 to $2,000.

$3.5 billion will be used to repay public funds lost as a result of servicers' misconduct and to fund housing counselors, legal aid and other public programs determined by attorneys general.

•An additional $1 billion will be paid by Bank of America to resolve a separate federal investigation related to alleged wrongful conduct by the bank and Countrywide involving inflated appraisals of Federal Housing Administration-insured mortgages. Half of that $1 billion will be used to fund a loan modification program for Countrywide borrowers who are underwater on their mortgages. Bank of America acquired Countrywide in 2008. Click Here to contact us if you have a Bank of America mortgage.  Our firm is engaged in litigation with Bank of America and you may be entitled to  a cash settlement.  

 How large could the settlement get if more servicers join?

  Officials estimate the deal could grow to $30 billion if the next nine largest servicers join the agreement.

  Does the settlement resolve all legal claims against the banks related to mortgages?

  No. State and federal authorities can pursue criminal actions and also punish wrongful conduct related to the bundling and sale of mortgage loans into investment securities, among other things.

  Who won't have any chance of a principal reduction?

  That would be most borrowers, including anyone current on a mortgage and people with loans owned or guaranteed by a government entity, including Freddie Mac, Fannie Mae or the Federal Housing Administration. They hold about 56% of existing home loans. However, you may qualify for other relief under separate programs.

In a recent paper, the Federal Reserve estimated that 12 million mortgages are underwater, and 8.6 million of them are current on payments. What's in the deal for people who are paid up?

Not much. If they still have high-interest loans above 5.25%, they might benefit from refinancing. Many underwater borrowers can't do that now because they don't have enough equity in their homes.

When could modifications and payments begin?

That's hard to say but the agreement requires servicers to fulfill their obligations within three years and gives them incentives to provide relief within 12 months. They must fulfill 75% of their obligations within the first two years. Mortgage servicers who miss settlement targets and deadlines will have to pay cash penalties.

What is Foreclosure Defense and Foreclosure Fraud?

Foreclosure defense is a strategic plan to stop a foreclosure without bankruptcy by challenging the validity of the foreclosure. Foreclosure fraud refers to the all too often violations lenders make against homeowners in foreclosing on their house.

More often than not, lenders and their attorneys are careless and they ignore the rules courts have set up to ensure homeowners are treated fairly and humanely throughout the foreclosure process. Jump Legal Group, LLC takes an "offensive" approach to foreclosure "defense" by identifying, exploiting, and attacking missteps banks and their attorneys often make. We are on the cutting edge of pursuing banks for foreclosure fraud and we are one of just a few law firms in all of Ohio that has successfully stopped foreclosures, sheriff's sales and evictions by challenging the legality of the foreclosure process itself.

"Many foreclosures by lenders in Ohio are fraudulent." -  Attorney John Sherrod

Inadequate Documentation: Most lenders filing foreclosure case in Ohio are unable to produce the documentation necessary to prove they have a legal interest in your home. This is because most mortgage notes have been sold many times leading up to the foreclosure. This is called an assignment of the note and it must be done according to strict legal requirements. We have found that most lenders DO NOT HAVE valid assignments. As a result, the foreclosure is fraudulent and may be stopped or overturned.

"Robo Signers": Another reason many foreclosures are invalid is that most lenders in Ohio have filed affidavits stating one of their representatives reviewed your loan documents and account. In fact, they have signed these affidavits without any knowledge whatsoever about your account. Many lenders use the same person to mindlessly sign hundreds, even thousands of affidavits in support of the foreclosure of your home.. In today's news, you might have heard of these people described as "Robo Signers". "Robo Signers" tell courts they have "personal knowledge" and "custody" of your account. The reality is the "Robo Signers" know absolutely nothing about your account. Providing a court with a "robo signed" document is a sanctionable offense and may be grounds to completely invalidate a foreclosure judgment.

We have identified grounds for pursuing the following banks for foreclosure fraud:

Wells Fargo, Chase, GMAC, Ally Financial, Bank of America, BAC, PHH Mortgage, or Green Tree Financial

My bank is not on the list. Is there a chance my bank violated my rights? Most banks and lenders use the same unfair foreclosure processes. Accordingly, even if your foreclosure bank is not one of those listed, it is likely your bank has violated your rights. Call or email our office for a free consultation with an attorney.

Our foreclosure defense team has overturned many foreclosures and has stopped countless sheriff's sales and foreclosure eviction-without filing any type of bankruptcys. If your lender has initiated foreclosure proceedings, call our office immediately for a free consultation with one of our attorneys to learn if foreclosure defense is right for you.

If you would like to learn more about whether foreclosure defense is right for you and can help you keep your home, please call or email our office to schedule a free consultation with one of our attorneys. Our staff returns calls and emails promptly, even on weekends and after business hours. Click here to request a free consultation with a foreclosure attorney.

Frequently Asked Questions about Foreclosure Defense

My mortgage company said if pay them a lump sum of money, they will stop the foreclosure. Should I believe them?

No. Once you are in default on your mortgage, the mortgage company usually keeps pushing the foreclosure process forward. Most homeowners who hand over a lump sum to their mortgage company find that the mortgage company does not keep up their end of the deal. If your bank has asked you to do this or if you have given your mortgage company a lump sum to catch up on your mortgage or to stop a foreclosure, please contact our office immediately.

Should I hire a foreclosure attorney to fight my foreclosure?

Yes. The foreclosure process used by most lenders is improper and misleads the court. Banks and their attorneys count on the fact that 99% of foreclosed upon homeowners do not seek legal counsel. Unless as the homeowne,r you seek legal help to point out the lender's intentional missteps, these violations will likely go unnoticed by the court. Once retained by a homeowner, our attorneys move swiftly and efficiently to stop the foreclosure.

Can a foreclosure defense attorney stop a sheriff's sale in the Columbus Ohio area?

Yes. Banks and their attorneys have very little incentive to stop a sheriff's sale. Their goal has historically been to speed along the foreclosure to arrive at the ultimate goal - the sheriff's sale -- as quickly as possible, and to the detriment of the homeowner and his or her family. We employ strategies and tactics to stop the sheriff's sale so the homeowner can continue to remain in the home while helping to work out a resolution with the bank.

How do I know if my lender is foreclosing on my home illegally or fraudulently?

Chances are, the note and mortgage covering your home has been assigned from one bank or trust to another many times over the life of the loan. The final "assignment" before the initiation of the foreclosure lawsuit is generally from MERS to the plaintiff bank, e.g, from MERS to Wells Fargo, GMAC, or CitiMortgage. Courts in Ohio have become more and more skeptical of MERS assignments and there is some question as to whether a bank has standing to foreclosure on your home if it involves a MERS assignment. Before or during the free consultation, our attorneys can quickly examine your situation and determine whether it is likely your foreclosure is illegal.

How does stopping a foreclosure help?

Stopping or reversing a foreclosure gives you quick leverage to facilitate a loan modification with the bank. In the past, homeowners had to beg their lenders for a loan modification. Our strategic foreclosure litigation counsel provides the homeowner with the ultimate leverage - you no longer have to beg for a loan modification, you can demand one. Further, stopping a foreclosure can give you time to work out other solutions such as a short sale, a deed in lieu of foreclosure, or it simply gives you time to find alternative housing arrangements.

Can challenging a foreclosure in Ohio help me to negotiate a loan modification?

Yes. We find that when a lender is faced with being unable to foreclose on the house, they are more motivated to agree to a loan modification. This is especially important given that banks' attorneys often pursue a foreclosure even as the bank "considers" a homeowners' application for a loan modification. Too often the homeowner learns that the banks' attorneys have foreclosed on the home before the loan modification can be put into place. Stopping the foreclosure makes certain that the bank will not take your house away while you pursue a loan modification.

I made payments toward a trial loan modification and the bank still foreclosed on me. Is that common in Ohio?

Unfortunately, yes. In most cases banks set up "trial loan modifications" or "forbearance agreements" as a last ditch effort to collect money from a delinquent homeowner. In most cases, the homeowner makes at least three payments under the "trial loan modification" with the promise from the bank that the foreclosure lawsuit will be "suspended" or dismissed. The foreclosure lawsuit is never "suspended" or dismissed, and in the end the homeowner realizes he or she made three payments for nothing. Banks prey on desperate homeowners who will do anything to save their homes.

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