Foreclosure MUST Be The Last Option!
A critical announcement out of Fannie/Freddie that has a dramatic impact on the conduct of foreclosure litigation. Foreclosure lawyers that defend consumers in foreclosure cases need to understand the implications of this on the foreclosure process…
The underlying message here is more confirmation of the “Wizard Behind The Curtain” phenomena.
THE BANKS THAT ARE FORECLOSING ARE NOT THE REAL PARTY IN INTEREST!
The banks, the servicers…they’re merely debt collectors, servants to a hidden master. And yet courts will not contemplate this critical dynamic. Where is today’s support for this? The recent announcement that a new portfolio of a billion dollars in loan servicing will be sold….consumers upset at the big, bad banks should consider where they get their marching orders from.
Loss mitigation waterfall requirements: Servicers must apply a waterfall of resolution tactics that includes evaluating borrower eligibility for a loan modification (HAMP and/or proprietary modification), a short sale, and a deed-in-lieu of foreclosure. Foreclosure must be the last option in the waterfall. The waterfall may consider net present value to the investor;