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Hitting the right buttons

Anonymous • Dec 27, 2012 at 11:34 AM

When you consider that the law of “securitized mortgage loan defense” (not simply “foreclosure defense”), is only a little over four years old, rising from the ashes of the housing market collapse of 2008, you realize that this area of the law has developed recently and extremely rapidly, and with it our ability to learn how to “push the right buttons” of the profit-driven banks eager to foreclose because it is profitable to do so. Only by knowing where to locate the banks’ buttons and how to push them effectively can the homeowner win the battle for real, long-lasting mortgage relief.

I often tell clients that once you are “in the cross-hairs” of the mortgage company, the only way of successfully saving your home is to exercise a strange blend of “fighting back” and “playing nice” at the same time. One approach without the other will always fail. Let me explain. By “fighting back”, I mean asking the right questions about your loan. In turn, asking the right questions means being knowledgeable about how loan securitization works and the law, rules and regulations meant to help homeowners avoid foreclosure. “Playing nice” means working in good faith with the mortgage company to provide it with the homeowners’ financial information, which is always required to even be considered for a home loan modification.

Earl’s story is the latest example of a successful application of this strategy. Earl came to us in May, 2012, just coming out of bankruptcy. The bank wasted no time in filing a foreclosure action against him. Because he failed to exercise the right blend of “fighting back” and “playing nice” he was not able the break the bank’s drive to foreclose. We immediately entered a defense to the foreclosure, which included extensive discovery, or questions meant to sift through and expose the fraud which no doubt existed in the background of Earl’s loan. At the same time, we reached out to Earl’s bank by requesting a financial package for Earl to complete. Once received, we assisted Earl in completing the package and getting it back to the bank for its consideration.

The result of the effective use of this strategy? – a phenomenal loan modification for Earl; one that any homeowner would envy. With a reduction in his interest rate from 7.1% to 2 % for the first five years, capping off at 3.39% for the remaining term of the loan, Earl’s monthly payment of principal and interest fell by almost one-half – from $1159 to $593 per month. With this payment, Earl is safely in his home as long as he chooses to be. All of this happened as a result of hitting the right buttons.

Note from the author: If you have questions or comments regarding this or any Foreclosure Story article, please visit www.mcgookeylaw.com

Next week:  Never say never – the story of the Jamisons.

Copyright 2012 Daniel L. McGookey


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