Second Mortgage Foreclosure

She needs to fight and fight hard to save her home. There is little chance the first mortgage lender will buy up the second for her no matter how good she has been on making her payments to them. They will be far more likely to jump in with their own foreclosure action on top of the second one. She has jeopardized their interest in the home and they can foreclose on that basis alone. Fighting back is going to be expensive which will further deplete her ability to pay even the first on time. She needs to start learning how to fight now before it is too late. Her first step should be to get a mortgage fraud audit on both notes right away. There goes $1,000 and maybe $2K. Armed with the results of the fraud audits she may very well have cause to take her lenders to federal court. I'd recommend either Neil Garfield or Norm Bradford to do the audits. She can get it done for much less from other sources but it might take a very long time to get the results if she ever does. I know of many people who have hired other auditors for much less money only to get ripped off. Many such auditors are simply not qualified to do what they claim to be able to do yet anyone who has ever been a bank compliance officer is well qualified to do mortgage audits. It isn't rocket science. Many will try to tell you they are certified fraud auditors but the question then becomes who certified them and what is the value of that certification? Most of the time their so called certification and a couple of bucks might get you a cup of coffee somewhere. The fraud auditors are more likely to be fraudsters themselves. I know of one man who claims to be able to save your home but just recently lost two of his own to foreclosure. That man has two web sites where he proclaims himself to be able to save your home for you. If he couldn't save his own then how can he be trusted to save yours?

One thing I can tell you for sure is that people who learn how to fight back and do it effectively stay in their homes and those who don't lose every time.

 

preditory lending isn't the only violation that lenders can commit by a long way. There are many other factors taken into consideration in a mortgage fraud audit. One of them might be whether or not she was given a written 3 day notice of right of recision at the time of closing. Was she given a full and complete disclosure of all costs and charges? There are so many more that I don't even know about that could have been present and would be revealed in a fraud audit. Tila, HUD, RESPA and other laws are all taken into consideration in a good audit. Any violation is actionable. Such an audit should be conducted by the homeowner immediately after the loan has been completed to be certain that they have not somehow been defrauded. Of course people don't do that because they are just happy to be in their new home and are busy with getting settled in as well. They are totally unaware that either their broker or their lender or the title insurance company might have just bilked them out of several thousand dollars all in the guise of doing them a good deed.

 

An amicable agreement satisfactory to all parties is always to be preferred to a litigated settlement. Right now your mother needs all the cash she can get her hands on or keep in her purse rather than spending it on such things as a fraud audit. But once this crisis is over and she is in a better position she really does need to get fraud audits on both loans. Granted that it is always a roll of the dice so to speak and might come back with no violations. On the other hand it might come back with enough serious violations to get her home free and clear for her or anything in between. Homeowners need to go ahead and roll the dice if at all possible to be certain that their rights have not been violated or they have somehow been ripped off in the loan process.