Information On Mortgage Loan Modification Fraud

Losing your home or property may not be just a symptom of subprime lending ailments or employment woes.

First scenario: You were the victim of mortgage broker or loan officer cheats who were filing for a fraudulant mortgage.

Second scenario: Your personal finances have suffered, putting you behind on your house payments and making you easy bait for fake foreclosure “rescue” services.

Whatever the case, a mortgage fraud or foreclosure attorney can help you through the process, perhaps regaining your equity. Meanwhile, however, you are still at risk for economic crime.

The Lender Files Suit
Foreclosures are lawsuits brought by a bank or its representative against a property owner who fails to make mortgage loan payments for 90 days. The lender files a public record called a notice of default announcing the pending lawsuit. These can be viewed by the public, making such homeowners vulnerable to those who would use foreclosure status to their advantage.

Consulting a real estate attorney immediately may help you take corrective action, if possible, before it is too late. If a mortgage broker approaches you at this time offering cash for temporary surrender of your deed, you should also seek professional legal counsel or report the incident to authorities.

Redemption Period Precedes Foreclosure
Property laws vary by state. The legal right to inhabit the property, however, is usually surrendered when the foreclosure process is complete. Following the notice of default, the pre-foreclosure phase extends for 30 to 365 days, depending on the state, before the process ends in transfer or sale of the home in question. Your mortgage attorney will keep you informed of the time frame and options for you at that juncture. Some states give homeowners another chance to catch up on their outstanding loan payments during this redemption period.