As negotiations over the $25 billion settlement dragged on, the banks involved in the settlement (Ally Financial, Bank of America, JPMorgan Chase, Wells Fargo and Citi) waited for the details. While they waited, they slowed down, or stopped the foreclosures they had been processing.
Now that the $25 billion settlement has been negotiated (Feb 9, 2012) it’s forecasted the banks will go ahead processing those foreclosures. Most of the slow-down or stoppage occurred in the last quarter of 2011.
The February 9, 2012 settlement will help an estimated 1 million homeowners but there are 11 million homeowners who are underwater. The settlement only applies to borrowers who are current with their mortgage payments.
Last year alone, it’s estimated 800,000 homes were repossessed. This year the estimates are likely to be over 1 million. Another 1 million homes are likely to be repossessed in 2013. It will be years before the housing market gets back on track.
If you are in jeopardy of having your home foreclosed, make sure you have all your paperwork in order. Foreclosure is a form of civil lawsuit and the preservation of all evidence is essential for an effective defense. Any and all correspondence with your lender should be in writing. Make sure you have confirmation your lender received all correspondence (i.e., fax copy, certified mail). Save and organize all your documentation because you may need it.
Even if you don’t think you can afford an attorney to represent you, it’s recommended you contact a qualified defense foreclosure attorney as soon as you can. Many homeowners wait until it’s too late – when their foreclosure process is in the final stages. Most attorneys will work with you and offer a payment plan.
And don’t give up hope.
Keith A. Gantenbein, Jr. is a Colorado foreclosure defense attorney located in Denver and servicing all of Colorado. He also handles bankruptcies, mortgage negotiations, lender liability, real estate, civil litigation, contracts and landlord/tenant. If you think you will be facing foreclosure, or are in the foreclosure process, or have had a wrongful foreclosure, contact Keith Gantenbein at (303) 618-2122 for a one-hour consultation where he will discuss your situation and go over all your options with you.
This article is not intended as legal advice. The opinions of this article are solely the opinion of the author.