Homeowners in Florida and around the country work each month to pay their mortgages and remain in their homes. In difficult financial situations, some may seek loan modifications to reduce the amount of monthly mortgage payments. Others may choose to file for bankruptcy in order to keep their home but start with a clean slate to rebuild financial stability. Recently, a consumer affairs columnist highlighted the woes of a couple in another state that believed they had taken the necessary steps to keep their house but now face home foreclosure.
In 2000, a couple had purchased their home, but they filed for bankruptcy in 2013. An agreement was reached with their bank to keep their home, and the couple made payments regularly for three years. However, in 2016, the bank tried to foreclose on the home for non-payment.
The couple was offered a modified mortgage nine months after they had filed for bankruptcy. Payments were routinely made, but some unusual activity was observed on one of the statements in Dec. 2015. After contacting the bank, the husband discovered that the bank had not recorded all the monthly payments. He had cancelled checks to support his claim that payments had been made. However, the bank never reconciled the account.
The bank began the foreclosure process in June 2016. The couple is confused as to why someone who has faithfully made payments the entire time would receive a foreclosure notice. They believe the bank is in violation of several regulations, including UDAAP or Unfair, Deceptive or Abusive Acts and Practices.
When dealing with personal financial struggles or unfair actions by a financial institution, it would be beneficial for Florida homeowners to consult with a knowledgeable bankruptcy attorney. An experienced lawyer familiar with personal finance can discuss all possible options with clients and determine the best path forward. A skilled attorney can help homeowners avoid home foreclosure and identify a plan for getting back on track financially.
Source: nj.com, "Bamboozled: Bank 'pulls a fast one,' misplaces payments, threatens foreclosure, customer says", Karin Price Mueller, April 10, 2017