Wrongful foreclosures often happen when mortgage companies engage in improper or abusive practices, such as:

• Failing to properly apply payments.
• Making false promises that a foreclosure will be canceled.
• Refusing to help borrowers modify a loan.

A foreclosure is one of the hardest situations you – and your family – can face. You shouldn’t have to suffer wrongful foreclosures at the hands of disorganized or untrustworthy mortgage servicers.

Let’s explore a couple common wrongful foreclosure scenarios. If these describe your current situation, contact us below for a free consultation.

Dual tracking

Have you applied for a loan modification, but your mortgage servicer referred you to foreclosure anyway? This is called dual tracking and is generally illegal.

There are specific timelines and requirements that mortgage servicers must follow after they have received a complete loan modification application before they can proceed with foreclosure.

If you believe you were unfairly referred to foreclosure after you applied for a loan modification, you might be able to take legal action.

Zombie second mortgages

Have you received a foreclosure notice or monthly statements from a second mortgage that was paid off years ago? When an old mortgage “comes back from the dead” like this, it’s called a zombie second mortgage.

With the recent surge in home prices, debt collection companies have begun attempting to collect payment for zombie mortgages more frequently.

This often happens due to a servicing error. For example, the collection company might have added late fees and interest charges that were waived by prior servicers. This means that they are attempting to collect more money than you owe on the loan.

Other times, these debts have passed the statute of limitations, particularly if they were accelerated before they were charged off.

Second mortgage companies can foreclose on your home, even if you are current on your second mortgage. So, if you are receiving monthly statements or foreclosure notices for zombie mortgages, don’t assume that it is a scam.

How can we help you avoid wrongful foreclosures?

Kelly Guzzo, PLC, has successfully represented many families facing wrongful foreclosures. Our attorneys work with foreclosure trustees and mortgage companies to give families time to develop solutions and avoid foreclosure sales.

We’ll meet with you at no cost to discuss how best to handle your situation. Even if a foreclosure sale is your only option, we’ll ensure that you’re treated with respect while you find a place to relocate your family.