PHH Mortgage Corporation Foreclosure Defense

PHH Mortgage Corporation is a mortgage servicing company. This means that they manage mortgages for banks and other financial institutions. It also means that if you have fallen behind on your payments, PHH may or may not have the right to foreclose on your home. Losing your home is always a very frightening prospect, but even if PHH is threatening you with foreclosure, it does not necessarily mean it will happen. PHH Mortgage Corporation may be violating federal or state law, or there may be other defenses available in your case. Below, our Fort Lauderdale foreclosure defense lawyer explains further.

How Can a Foreclosure Defense Lawyer Help?

There are many federal and state laws mortgage servicers such as PHH must comply with. These laws protect homeowners and ensure their rights are protected. Whether or not PHH Mortgage Corporation has the right to foreclose on your home, there may be options available. If any of these situations have happened, our foreclosure defense lawyers can help:

• PHH has stated that you have defaulted on your mortgage and will foreclose even though you are current with your mortgage payments.
• PHH has refused to review or honor your loan modification.
• PHH has wrongfully denied your loan modification application.
• PHH has refused to accept a mortgage reinstatement or payment.
• PHH has proceeded with a foreclosure sale while your loan modification application is still under review.

There are other instances in which PHH Mortgage Corporation may have violated your rights. If you feel as though they have treated you unfairly, it is important to speak to an attorney who can advise on your case.

Who is PHH Mortgage Corporation and Can They Foreclose On Your Home?

Again, PHH is a mortgage servicing company. Mortgage servicers are often confused with the company that owns the actual loan. The mortgage loan owner is the bank or company that gave you the mortgage originally. Some owners of mortgage loans also service them, but many rely on mortgage servicers. The servicer of the loan simply manages it, but the loan still belongs to the original company.

PHH Mortgage may only be able to foreclose on your home if they own the loan. That is, if you originally took the loan out with them or they have purchased the mortgage from another company. If they have sent you a notice of foreclosure, it is critical to confirm that they own the loan. If they do not, and they are simply servicing the loan, they have no right to foreclose. Still, if you do not act after receiving the notice of foreclosure, PHH may be able to proceed with foreclosure in as little as six months.

You Have Rights in Foreclosure

Receiving notice of foreclosure is extremely stressful. You may automatically imagine the worst, but those fears may not become a reality. There are many laws that protect consumers during the process, and you have many rights. It is important to work with a lawyer who will ensure these rights are upheld. During foreclosure, you have the right to:

• Challenge the foreclosure: The fact that many lenders foreclose on homeowners without legal standing or otherwise violate the law is unfortunate but true. Legal standing refers to the fact that PHH owns the loan and therefore, has the right to take legal action against you. If they cannot prove that they own the loan, they have no legal standing. Forcing PHH Mortgage Corporation to validate the loan is just one right you have, and it can also serve as a defense.
• Mediation: Sometimes, a judge will send a foreclosure case to mediation before it goes to trial. During mediation, you and PHH will meet with a third-party mediator who will try to foster communication and compromise between you and the company. It is not uncommon in foreclosure mediation cases for the two parties to reach an agreement that allows the homeowner to keep their home.
• Counterclaim: If PHH Mortgage Corporation has acted illegally, you may be able to file a counterclaim against them. For example, the Dodd-Frank Act prohibits mortgage lenders and servicers from dual tracking. Lenders engage in dual tracking when they proceed with a foreclosure while they are still reviewing or negotiating a loan modification application. If PHH has engaged in such a practice, you can file a claim against them to obtain damages for your losses.

Predatory Lending

Predatory lending was commonly seen before the housing market collapse in 2008. This occurs when a sophisticated party preys on a homeowner who is desperate. Predatory lending is outlawed by the Florida Fair Lending Act. Some examples of predatory lending are as follows:

• Loan documents that do not provide complete disclosure or that contain hidden terms or forged signatures,
• The terms of the loan or the name of the lender change in the mortgage documents right before closing,
• The loan is unsuitable, such as if the lender requires the loan to be structured as a commercial loan when it is for a primary residence,
• Borrowers are encouraged to take out loans that are unaffordable,
• The loan is structured with a balloon payment which is refinanced with exorbitant fees,
• The loan is structured with small monthly payments with a significantly larger last payment,
• The terms of the loan include prepayment penalties that are meant to keep the borrower in debt for as long as possible,
• The balance of the loan is refinanced into a new mortgage without the consent or knowledge of the homeowner, and
• Excessive interest rates and fees.

The above list is not exhaustive. If you believe PHH, or any other company, is treating you unfairly, it is critical to speak to a Florida foreclosure defense attorney.

Call Our Foreclosure Defense Lawyer in Florida for a Free Case Review

If PHH Mortgage Corporation is threatening you with foreclosure, you need a strong legal defense. At Loan Lawyers, our Florida foreclosure defense lawyer can advise on your case, make sure your rights are upheld, and give you the best chance of a favorable outcome. Call us now at (954) 523-4357 or contact us online to request a free consultation and to get more information.