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Bankruptcy Basics Part 6: Bankruptcy Crime
A debtor must be honest and accurate in dealing with the court or face serious consequences, including being charged with a bankruptcy crime.
“Produce the Note” is a strategy to delay foreclosure on a residential mortgage. In essence, a homeowner who has received a foreclosure notice on their residential property has the right to ask the mortgage lender to produce the original promissory note that they (the homeowner) have signed when accepting the terms of the mortgage. In many cases, the mortgage has been sold, resold and passed from one lender to another, that the original note, signed by the homeowner, has been lost, stored away, or even destroyed.
If you are facing foreclosure, contact the attorneys at Garces & Grabler for help.
Produce the Note Act of 2009 – Prohibits commencement of any foreclosure in connection with certain residential mortgages unless the person commencing the foreclosure complies with specified prerequisites, including identification of the actual holder of the mortgage note, the originating mortgage lender and all subsequent assignees, and other all parties who have an interest in the real estate subject to the mortgage or in the mortgage or its proceeds. Requires the person commencing the foreclosure to:
Contact Garces & Grabler for foreclosure help.
If you are unable to pay – or haven’t paid – your mortgage, contact your lender or the company that collects your mortgage payment as soon as possible. Mortgage lenders want to work with you to resolve the problem, and you may have more options if you contact them early. Call the phone number on your monthly mortgage statement or payment coupon book. Explain your financial situation and offer to work with your lender to find the right payment solution for you. If your lender won’t talk with you, contact a housing counseling agency. You can find a list of counseling resources at NeighborWorks and on the U.S. Department of Housing and Urban Development’s (HUD) website or by calling (800) 569-4287.
Find your original mortgage loan documents and review them. Review your income and budget. Gather information on your expenses, including food, utilities, car payment, insurance, cable, phone, and other bills. If you don’t feel comfortable talking to your lender, contact a housing or credit counseling agency. Counselors can help you examine your budget and determine the options available to you. They may also advise you about ways to work with your lender or offer to negotiate with your lender on your behalf.
Some options provide short-term solutions/help, while others provide long-term or permanent solutions. You may be able to work out a temporary plan for making up missed payments, or you may be able to modify the loan terms. Sometimes, the best option may be to sell the house. For information on different options, visit HUD’s website or Foreclosure Resources for Consumers for links to local resources.
Protect your credit score by making timely payments. Prioritize bills and pay those that are most necessary, such as your new mortgage payment. Consider cutting optional expenses such as eating out and premium cable TV services. If your situation changes and you can no longer meet your new payment schedule, call your lender or housing counselor immediately.
Con artists take advantage of people who have fallen behind on their mortgage payments and who face foreclosure. These con artists may even call themselves “counselors.” Your mortgage lender or a legitimate housing counselor can best help you decide which option is best for you. For tips on spotting scam artists, see our previous posts about foreclosure scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Consumer Action Website.
Several options are available to you. Some options provide temporary solutions for short-term problems, such as being one or two months behind in your mortgage due to illness. Other more permanent solutions address long-term financial difficulties, such as job lay-offs or long-term unemployment. If you have an FHA-approved loan, special loan modification programs may be available to you – ask your lender about them. Unfortunately, in some cases, keeping your home may not be possible – options for handling that situation are available as well.
For more information about loan options that may address your unique situation, visit the HUD website.
This article about foreclosure is brought to you by the NJ Bankruptcy Lawyers at Garces & Grabler, P.C.
If you are considering filing for bankruptcy in NJ, contact our New Jersey Bankruptcy Lawyers to set up a free consultation. We offer payment plans to fit your budget.
This article is fourth in a series of articles about foreclosure scams to help people facing foreclosure avoid getting taken advantage of.
If you are looking for help to prevent foreclosure, be sure the counseling agency is on the Department of Housing and Urban Development’s list of approved agencies. Visit HUD’s website for an easily searchable list of HUD-approved housing counseling agencies, or call 877-HUD-1515 (877-483-1515) for more information. If you are approached by foreclosure counselors–by mail, phone, or in person–make sure the counseling agency is HUD-approved before you do business with them.
You should not have to pay hundreds – or thousands – of dollars. Most HUD-approved housing counselors provide no-cost counseling services and many more provide low-cost counseling. Do not agree to work with a counselor who collects a fee before providing you with any services or who accepts payment only by cashier’s check or wire transfer. In general, do not pay money to anyone unless you know exactly what services you will receive.
A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your home – but be wary of people who promise a sure thing. Again, get the details of your transaction, along with any promises, in writing first.
Don’t let a counselor pressure you to sign paperwork you haven’t had a chance to read through carefully or that you don’t understand. Don’t sign any blank forms or let “the counselor” fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.
If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission’s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center’s Consumer Action Website.
This article about foreclosure scams is brought to you by the NJ Bankruptcy Lawyers at Garces & Grabler, P.C.
If you are considering filing for bankruptcy in NJ, contact our New Jersey Bankruptcy Lawyers to set up a free consultation. We offer payment plans to fit your budget.
This article is third in a series of articles about foreclosure scams to help people facing foreclosure avoid getting taken advantage of.
Homeowners in foreclosure should be aware of Surplus Funds scams. Surplus Funds are proceeds generated from the sale of your home at a sheriff’s sale*. If your home is sold for more than what you owe on your mortgage and for taxes, you may be entitled to Surplus Funds, which in some cases could total thousands of dollars.
Foreclosure is the equitable proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust.”
Con artists and companies looking to capitalize on your misfortune have been approaching home owners after the sheriff’s sale takes place offering to apply for Surplus Funds on your behalf. Many will send letters offering assistance, or may even knock on your door.
These con artists and/or companies are charging exorbitant fees, sometimes up to 75% of your surplus amount, to apply for this money on your behalf. The reality is, for less than $100 and, in many instances, without the assistance of an attorney, you can apply for Surplus Funds on your own.
a) After the sheriff’s sale takes place, contact the sheriff’s office in your county to determine if the sale of your home resulted in Surplus Funds.
*A sheriff’s sale is an auction of property conducted by the sheriff following a court order to seize and sell a property to pay a debt after notice to the public.
b) Contact the N.J. Superior Court Trust Fund Unit for assistance in applying for the Surplus Funds the sale of your home has generated. The Trust Fund Unit may be contacted by calling 609-292-3937 or by writing to:
The Trust Fund Unit
c/o Superior Court of New Jersey
P.O. Box 971
Trenton, N.J. 08625
c) Speak with a trusted attorney.
d) Contact the Division of Consumer Affairs if you feel you have been a victim of fraud.
This article about foreclosure scams is brought to you by the NJ Bankruptcy Lawyers at Garces & Grabler, P.C.
If you are considering filing for bankruptcy in NJ, contact our New Jersey Bankruptcy Lawyers to set up a free consultation. We offer payment plans to fit your budget.
This article is second in a series of articles about foreclosure scams to help people facing foreclosure avoid getting taken advantage of.
The thought of losing one’s home through foreclosure is a frightening prospect. In desperation, many homeowners fall victim to con artists who offer to help them save their homes, but ultimately make the situation worse. These con artists cheat homeowners out of thousands of dollars and their homes through deceit, deception and lies.
Foreclosure is the equitable proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner’s failure to comply with an agreement between the lender and borrower called a “mortgage” or “deed of trust.”
Homeowners are urged to transfer their property deed for a minimal payment offered by the con artist. The con artist may promise to transfer the deed back after certain conditions are met. A homeowner may receive a few thousand dollars in return for signing away his or her ownership of the home but can end up losing tens of thousands of dollars in equity due to the homeowner as well as the title to the home. The con artist’s verbal promises go unfulfilled.
The Foreclosure Process
Often times, after obtaining the deed, the con artist allows the home to go through foreclosure. At the sheriff’s sale, the home often sells for more than what is owed to the mortgage company and the taxing authorities. A sheriff’s sale is an auction of property conducted by the sheriff following a court order to seize and sell a property to pay a debt after notice to the public. The difference between the sales price and amount owed is called Surplus Funds. The deed holder is entitled to the Surplus Funds. The con artist who bought the deed, sometimes for a small amount, is entitled to apply for the Surplus Funds. The original homeowner who would have been entitled to those funds loses out on potentially tens of thousands of dollars.
When homeowners are contacted about foreclosure options by a third party, homeowners should:
This article about foreclosure scams is brought to you by the NJ Bankruptcy Lawyers at Garces & Grabler, P.C.
If you are considering filing for bankruptcy in NJ, contact our New Jersey Bankruptcy Lawyers to set up a free consultation. We offer payment plans to fit your budget.