US Bank is one of the largest financial institutions in the country. As such, they offer mortgages to thousands of borrowers in Florida, and throughout the rest of the United States. Unfortunately, these mortgages can often bring more heartache than joy to borrowers. Instead of giving them a secure place to live, they can be placed at risk when the US Bank threatens homeowners with foreclosure, which happens often.
If you have a home loan with US Bank and they have notified you that they have started the foreclosure process, it is important to obtain sound legal advice. Just because this bank, or any financial institution for that matter, makes these threats, it does not mean you will automatically lose your home. Below, one of our Fort Lauderdale foreclosure defense lawyers outlines the defenses in these cases.
Repayment Plans
If you can negotiate a repayment plan with US Bank, you can make your regular monthly payments while adding a bit more to them. The surplus funds will be used to repay any delinquent mortgage payments. You should only enter into a repayment plan if you know you can afford the added payment while still also paying your monthly expenses. If you default on the repayment plan, the bank will still have reason to foreclose on your home.
Loan Modifications
US Bank offers loan modifications to qualifying borrowers. A loan modification can change any term of your mortgage including the interest rate, the length of the loan, the amount of monthly payments, and more. There are many rules lenders must comply with when negotiating a loan modification with a homeowner.
Lenders cannot start a short sale or foreclose on a home when your application for a loan modification is still being reviewed by a lender. In one case, US Bank was particularly dishonest during loan modification proceedings. A borrower had filed for Chapter 13 bankruptcy in order to make her mortgage payments more affordable and avoid foreclosure. US Bank convinced her to have the automatic stay lifted on the promise that they would agree to a loan modification. Once the stay was lifted, US Bank put her home up for short sale one month later.
Even when a bank agrees to a loan modification, it is still critical to work with a Fort Lauderdale foreclosure defense attorney. A lawyer will know the law and make sure your rights are upheld throughout the process.
No Standing
Foreclosure is a judicial process in Florida. This means that when a lender such as US Bank wants to foreclose on your property, they must file a lawsuit against you to do it. In order for the US Bank to have a legitimate legal action against you, they must have standing. Essentially, having standing means the bank has something to lose if you do not pay your mortgage payments and so, they have the right to file a lawsuit against you.
Many people assume that if a lender informs them they are initiating the foreclosure process, they have the legal right to do so. This is often not the case. Lenders bundle and sell mortgages to other financial companies all the time. As the documentation changes hands several times, notes can get lost. When lenders cannot produce the note that proves they actually own the mortgage, they have no legal standing to file a lawsuit.
Deferred Payments
When you defer payments, you are not responsible for paying delinquent payments until a specified time in the future. Once that period of time is over, you must repay the delinquent amount in total. It is important to note that while your delinquent payments are deferred, many times banks expect you to continue making your current mortgage payments. It is also important to know that interest still accrues on these payments, even during the deferral period. You are also responsible for paying the interest when the deferral period is over.
To defer payments with US Bank, you must meet two eligibility requirements. The first is that the mortgage must be delinquent between 30 and 60 days. The delinquent status must have also been unchanged for at least three months.
Forbearance
Forbearance is similar to a deferred payment plan. The difference is that instead of deferring delinquent payments, you can suspend all payments until a later date. Like a deferred payment plan, you must also show that you are experiencing a temporary hardship. Like with a deferred payment plan, the mortgage will continue to accrue interest, which will have to be repaid after the forbearance period is over.
Short Sale
A short sale can prevent foreclosure on your home, but you will still lose it. During a short sale, the home is sold for less than what is owed on the mortgage. The US Bank requires borrowers to show that they are experiencing hardships before they will agree to a short sale because they will not recover the full amount of the loan. If you cannot pay your mortgage and other expenses, or you want to sell your home but you owe more on the mortgage than what it is worth, a short sale may be a good option.
Deed in Lieu of Foreclosure
When you choose a deed in lieu of foreclosure, you give your lender the deed to your home and in exchange, they do not foreclose on your home. Again, you will have to vacate the home but you will not face other consequences of foreclosure, such as a lowering of your credit score.
Complaints Against US Bank
There have been many complaints against US Bank. In 2018, a man from Brooklyn was sued for foreclosure. His legal team later found that US Bank did not actually own the mortgage and therefore, had no legal standing to file a foreclosure lawsuit. The judge in the case not only deemed the foreclosure lawsuit to be frivolous, but he also ordered the bank to pay $10,000 in sanctions.
The above scenario happens more often than people think. Financial institutions often bundle mortgages together and sell them to other lenders. Once they do this, they no longer have any interest in the property and cannot foreclose on the homeowner.
In another complaint, a woman from Illinois alleged that US Bank had contacted her every day after they denied her loan modification and started the foreclosure process. Contacting consumers in a harassing manner, including calling them incessantly, is a violation of the Telephone Consumer Protection Act (TCPA). This was just one violation of the TCPA the lawsuit alleges. The woman is the plaintiff in a class action lawsuit. She is seeking $1,500 in damages for every violation, including every phone call made.
The above are just two common violations of the law that can serve as a foreclosure defense. Others include:
- Proceeding with a short sale or foreclosure while your loan modification is under review, a strategy known as Dual Tracking, which is prohibited,
- Refusing to review or honor your loan modification,
- Failing to respond to your application for a loan modification within 30 days,
- Refusing to accept your mortgage reinstatement or mortgage payment, and
- Stating that you are in default and threatening foreclosure when you are not behind on your loan payments.
Our Foreclosure Defense Lawyers in Fort Lauderdale Can Help Determine which Option is Best for You
If US Bank has filed a foreclosure lawsuit against you, it is critical to speak to our Fort Lauderdale foreclosure defense lawyers as soon as possible. At Loan Lawyers, we have extensive experience working with US Bank and we will put that expertise to work for you. Call us now at (954) 523-4357 or fill out our online form to request a free review of your case with one of our attorneys and to get more information.
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Loan Lawyers is made up of experienced consumer rights attorneys who use every available resource to develop comprehensive debt solution strategies. Our goal is to take on those burdens, resolve those problems, and allow our clients to sleep soundly knowing they are on the path to a better future.
