Government liquidating foreclosed homes
Watch out for those who makes promises and ask for payment of upfront fees.
Such offers are likely fraudulent and against the law.
A forbearance lets you pay less for a certain amount of time.
However, most often, any unpaid amounts will be due at the end of the forbearance.
Even if you do not receive this notice, you can still apply for a loan modification with your servicer.
The Service Members’ Civil Relief Act (SCRA) of 2003 also protects homeowners.
Courts must disallow a claim that is subject to any remedy for rescission under the Truth in Lending Act, notwithstanding the prior entry of a foreclosure judgment.The bill adds to conditions for court confirmation of a plan in bankruptcy that: (1) the holder of a claim secured by the debtor's principal residence retain the lien securing the claim until the later of the payment of the claim as reduced and modified, completion of all payments under the plan, or the discharge of a debtor from all debts; and (2) the plan modifies the claim in good faith and the court does not find that the debtor has been convicted of obtaining by actual fraud the extension, renewal, or refinancing of credit that gives rise to a modified claim.Upon request, the court may confirm a plan proposing a reduction in the interest rate on the loan secured by such security interest and that does not reduce the principal, if certain requirements are met.The SCRA notice doesn't mean it is too late to apply for a modification or other foreclosure prevention options. Your lender might be willing to rewrite the terms of the homeowner's loan to address a delinquency. A loan modification may be able to make your monthly payment more affordable.It is a long-term solution for when the original payments are unaffordable. A forbearance or a repayment plan are temporary agreements that may help stop the foreclosure process.
The bill excludes from the final discharge of a debtor from all debts any unpaid portion of such a claim as reduced.