If your home is sold to a third party (i.e. someone other than your lender) at your home’s foreclosure sale, that third party is considered a bona-fide purchaser, meaning that they cannot be held responsible for your lender’s wrongful foreclosure because they bought the property without knowledge of it. In that case, you may not get your home back even if you prove that your lender wrongfully foreclosed. Fortunately, the vast majority of homes are not sold to third party bona-fide purchasers at foreclosure sales. Instead, lenders usually buy homes they foreclose upon from their own foreclosure sale, and, because your lender is not a bona-fide purchaser, you CAN get your house back from your bank if you can prove wrongful foreclosure.
You are unlikely to be in a position to pay high attorneys’ fees for a protracted period of time, considering how you just lost your home to foreclosure. Also, you probably do not want to pay on an hourly basis because you do not want to be surprised with huge attorneys’ fees. At the Harouni Law Group, we listen to your situation and quote you a reasonable flat-fee to represent you.
Every case is different, but many lenders are willing to negotiate with us to settle such cases very early in the case, as soon as the first month. Other lenders take longer to settle, and some refuse to settle. In any case, we are ready to vociferously litigate your case to trial.
Under the federal Home Affordable Mortgage Program, lenders are to reduce distressed borrower’s monthly payments to 31% of their gross monthly income. Though not all borrowers are eligible for HAMP, we negotiate for similar terms in all cases. Further, we negotiate to have the full amount of your arrearages capitalized so that you will not be responsible for paying tens of thousands of dollars upon modifying your loan.
After years of foreclosure defense work, we found that most lenders are in violation of the Home Affordable Modification Program, which was a federal program enacted to ensure that participating lenders modify eligible distressed loans to 31% of the borrower’s gross monthly income. However, we also find many instances where lenders promise not to foreclose on borrowers’ property so long as the borrower’s HAMP application is pending, but they foreclose anyways despite never having determined whether the borrower is eligible for a modification. Some lenders will reject a borrower’s modification application based on facts which have no basis in reality. Some lenders do not follow the statutory procedures for conducting a lawful foreclosure sale. For example, some lenders do not wait 180 days between the time they file a Notice of Default and Notice of Trustee’s Sale on eligible loans. There are many more reasons why a foreclosure sale could be unlawful, so please call us to verify whether you have a case.