The Law Office of Carol A. Molloy

Tennessee Foreclosure Defense

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Tennessee Foreclosure Defense

You really don’t have to look very hard in the news lately, to see that the foreclosure situation in Tennessee is reaching frightening proportions. In fact Goldman Sachs Global ECS Research released a research paper on January 13, 2009 that predicted 13 Million mortgage defaults by the year 2014. See the report here at page 18 of the PDF.

It is hoped that the information on this website may provide beneficial advice, guidance, and be used as a resource of information for foreclosure prevention help by those who were victims of coercive tactics in the procurement of their loan, members of the bar, as well as others seeking information about foreclosures in general.

When faced with a foreclosure, most people figure they have no way out and do not challenge the foreclosure of their home. There may be several defenses you as the homeowner have, but fail to use by not challenging a threatened foreclosure. Over 80% of foreclosure actions go unchallenged by the homeowner, DON’T LET THIS HAPPEN TO YOU !!

When a homeowner is confronted with a potential foreclosure situation, you need to consult an experienced attorney who specializes in this area of the law, due to its highly complex nature. Experienced means much more than offering “loan modification services” or bankruptcy only. If these are the only services that are being offered to you, please take the time to research foreclosure defense on the internet. There are many good sources of places to start your research, Neil Garfield’s Living Lies website is a good place to begin.

There are many options a homeowner may have to possibly defend against foreclosure, including (but not limited to) challenging the mortgage servicer and lender on the defects, irregularities, and illegality of your home mortgage, and bankruptcy, just to name a few. Please refer to the links on the right side of this page for more detailed information about some of these topics.

My view is that servicers and attorneys that say that they will “modify your loan” are wasting your time and money. As an example of the proof of this statement, I would point to the percentage of loans that have received final approval for the Obama “HAMP” program. At last count approximately only 4 percent of the people who applied for HAMP were actually granted final approval. I predicted that this would be the outcome, as mortgage servicers make far more money in the fees associated with keeping you in foreclosure than that would ever receive under the President’s HAMP program. You the homeowner are “negotiating” with an entity (a mortgage servicer) that does not own your mortgage, and even worse has an incentive to keep you exactly where you are at, under the threat of foreclosure.

Anyone that has tried to negotiate a loan modification over the past year will tell you the same thing, you get the run around until the mortgage servicer makes you give up any attempt at working out a modification. Therefore, in most cases, pursuing a loan modification is a waste of time, and a home owner’s recipe for disaster.

One of the key concepts to understand foreclosure defense, is that your mortgage most likely is “securitized.” Gone are the days of driving down to your local bank, taking out a loan, and having that lender retain your mortgage note (although these days may be returning after the bloodbath America is now taking). Today your original lender has now “securitized” you loan, and ends up selling your mortgage note to the secondary market.. Your loan can be transferred again and again (if it is in a “mezzanine tranche as part of a CDO), even possibly selling it simultaneously to different investors).

Worse yet, there is Mortgage Guarantee Insurance (pool insurance), and credit default swaps (private contractual agreements to pay in the event of borrowers default) available which may have already extinguished your obligation. Yet the mortgage servicer presses on to foreclose on your home to collect yet again. Therefore many times when challenged, the entity foreclosing cannot produce your original note, or has great difficulty proving that they followed the mandates of the prospectus governing the securitization offering that included your mortgage) and tries to bluff its way through the foreclosure (if challenged), by saying they are presenting a “certified copy of the original note.” , and/or that they are the “record holder” of the mortgage.

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