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Foreclosure Defense Florida

Mortgage Modifications and Mediation Agreements- Wolves in Sheep’s Clothing?

I’ve frequently posted comments and figures which document what a dismal failure the modification efforts have been….under the HAMP program, the federal government has set aside $75 billion dollars and we’ve gotten fewer then 180,000 modifications.

Having said that, getting a modification may be worse for the consumer in the long run

than not getting one.

Homeowners and advocates need to think long and hard before agreeing to any sort of modification.   What we’re seeing across the board and in many cases is that lenders simply cannot produce the basic paperwork and evidence they need in order to complete a foreclosure.   Rather than try and correct these paper deficiencies in legally permissible ways (although in some cases, there may be no way to correct these fatal flaws), the lenders and their agents are papering the files in fraudulent and impermissible ways that often leads to the case being dismissed.   Most of my residential foreclosure cases are now either stalled at the Motion to Dismiss stage or they have been dismissed and the case not refiled after a Motion to Dismiss based on the issues described above.

Mortgage Modification- How The Wolf Gets in Your Door

Some of the initial modification agreements had clear terms and conditions that were relatively favorable to homeowners.   The agreements I’ve seen lately however, turn the tables and have the homeowner giving away many of the important rights and defenses I can use to defend their case in foreclosure.   Put simply, buried in the modification agreement are terms to the effect that the homeowner agrees and consents that the new document they sign is evidence that the lender has the right to foreclose.   I suppose if the modification were a great deal for the homeowner, it might make sense to sign the agreement, but I have yet to see any modification that was so desirable that it made sense to trade important rights for.

When mediations start in wide scale across Florida, there will be a real push to sign new agreements.   It will be more important than ever for homeowners and advocates to be aware of this issue and not give up any important rights as part of any agreement.

3 Comments

  • Excellent advice Matt. Another reason that I always advise the pro se homeowners to seek legal counsel before actually signing any mediation agreement. It’s a mine field out there!

    https://facebook.com/MediatorKen

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