MORTGAGE SERVICER JUMPS THE GUN ON FORECLOSURE
ADAM AND SANDY’S STORY
SAVE THE DREAM TO THE RESCUE!
When Adam was laid off from his job as a boat captain a year ago, he and his wife Sandy faced serious financial issues. Their household income was reduced by almost 90%. This meant they could no longer afford to pay their mortgages, among other bills. Fortunately, they were able to connect with Ohio’s Save the Dream Program, which provides mortgage assistance to homeowners whose income is drastically reduced due to unemployment. In their case, the Program stepped up to the plate and made Adam and Sandy’s mortgage payments for the past year.
NOT OUT OF THE WOODS
Presently, Adam has regained his position as boat captain. Unfortunately, that does not mean that he and Sandy are out of the woods on their mortgage issues, however. They have a second mortgage on their home which has gone unpaid since the lay-off. And even though they immediately reached out for help to the Bank holding the second mortgage when learning of the reemployment, the Bank has totally blown them off, refused to offer them any options to save their home, and filed foreclosure.
NOT JUST INCONSIDERATE
By refusing to cooperate with Adam and Sandy, their Bank was not just inconsiderate, but violating the law as well. Federal law requires banks to engage in “loss mitigation” (workouts) with borrowers prior to filing foreclosure. When the second mortgage holder didn’t do so, it violated the law. We will now write the Bank a letter demanding that it immediately offer Adam and Sandy a loan modification application and give it good faith consideration. If they fail to do so, they could be liable for all of Adam and Sandy’s fees and costs. By jumping the gun and filing foreclosure, the Bank may have provided Adam and Sandy just the way out of their mortgage problems once and for all.
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Kathryn Eyster contributed to this article.