Individuals who are faced with foreclosure or adverse lender action can be overwhelmed. Not only might some Texas homeowners already be in financial duress, but facing large mortgage lenders who can afford to litigate cases can be frightening. One couple in another state fought back against a foreclosure on their home and won both the case and a bid for attorney fees.

The homeowners received a mortgage in 1998. According to reports, one company originated the loan, but it was serviced by Washington Mutual. According to allegations from the couple, Washington Mutual wrongfully foreclosed on their property. The foreclosure allegedly occurred in 2008.

In the same year, Washington Mutual was purchased by Chase. The couple sued Washington Mutual in 2009 over the wrongful foreclosure, and in 2010 a motion was granted to Chase, allowing it to intervene in the suit because it held interests in the loan.

According to reports, the case was ultimately decided against Chase. The court ruled that the couple owned the property in question. It also ruled that Chase had created false documents regarding ownership of the mortgage. The court ruling voided the Chase documents and the foreclosure.

The couple, who had spent around a quarter million dollars on legal fees for the battle, then filed a motion to have Chase reimburse the attorney fees. The court allowed the motion and required Chase to reimburse the couple $255,135. Chase originally appealed the ruling, stating in part that the couple was excessively billed due to too many attorneys being involved. The couple’s law firm pointed out that Chase itself had four attorneys involved.

The appeals court sided with the couple again, forcing Chase to reimburse them for legal fees. In the end, it was a very positive outcome. Not all foreclosure proceedings have such outcomes, but homeowners who understand their rights and are willing to stand up for them have a better chance at a positive outcome than those who do not.

Source: HousingWire, “Chase’s fraudulent foreclosure: Court finds for plaintiffs“, July 2, 2014

A woman is filing a civil lawsuit in the Texas courts against her former husband, stating he hid facts during their divorce that caused an unequal division of property.

According to reports, the couple had been married for three years, were both living in the house, and during that time, the husband maintained the property was in foreclosure. Thus, the home was not included in the division of assets and property.

The wife maintains the husband had continued to live in the home as late as last year, and she disputed the allegation that it was in the foreclosure process. The suit alleges that the division of property was not completed correctly at the time of the divorce. The plaintiff is asking the home be sold immediately and profits divided equally between the two parties.

The wife’s charges include breach of contract, breach of fiduciary duty, fraud by nondisclosure and common-law fraud. The plaintiff is also requesting a temporary restraining order and demanding the defendant assume responsibility for all court costs and damages.

With much of the country suffering the loss of their homes following the recent recession, there have been numerous victims of the mortgage crisis. Losing one’s home and going through a dissolution of marriage are two serious life-changing events.

If you have been involved in the loss of your home along with fraudulent concealment of assets by an ex-spouse, you have the right to speak to someone who can provide wisdom and experience in representing the complications of asset division involving foreclosure. Find someone who can provide sound and results-based information to help guide you through the trauma of loss of your relationship and your dwelling.

Source: Southeast Texas Journal, “Woman demands ex-husband sell home” Matt Russell, Jun. 12, 2014

While the last ten years have proven to be an economic nightmare for homeowners and credit card users, the state of Texas, like most of the nation, is starting to spring forward in a slowly growing housing market. As the economy shows signs of recovery, many Americans are looking to invest in a home. There are many factors on the laundry list to consider, especially if children are in the picture. A good location, successful school district, the number of bedrooms one should have — these are all important. But one often-forgotten point involves debts incurred on credit cards.

According to a 2013 survey by the Consumer Federation of America, banks and lending institutions scrutinize credit scores when an applicant applies for a mortgage. It is not too soon to anticipate potential credit-score issues before you begin your housing-hunting adventure. There are ways to improve your credit.

The credit card reporting agencies are not infallible. They make mistakes. Request a copy of your credit score from all the agencies and go over it with a fine-tooth comb. Your lender may pull all three versions and study them.

Another common sense strategy is to reduce your credit card spending. Lenders will frown upon high debt-to-income ratios. Don’t spend more than you make. Especially during the loan application process, be prudent about posting charges to your cards. You can buy that boat after your house loan finalizes.

Another good tip is to stay well below your spending limit. Just because your Discover card has given you a $3,000 limit, you don’t have to use it. A guideline is to keep your amount under 30 percent of the allowed maximum.

Property is still affordable in Texas. A prospective homeowner should take the time to speak to someone who can explain what his or her scores really mean. Why they are low and what one can do to raise them may involve time and dedication. Legal and financial professionals can assist you as you contemplate entering a decision that will keep you on a steady path. It is a move that can affect the rest of your life.

For some, however, bankruptcy may be the best option, as it provides a fresh financial start. Many people have too much debt to overcome on their own, and bankruptcy may provide a needed solution.

Source:El Paso Online, “The do’s and don’ts, how to prime your credit score before you house hunt” No author given, May. 01, 2014

Losing a parent can cause incredibly powerful, sometimes debilitating emotions. At the same time, you know that there are a lot of different things you have to take care of. Handling your parent’s estate is one of those things. Unfortunately, if your parent had a reverse mortgage, time might be working against you.

The reverse mortgage program allows people who are 62 and older to access the equity in their homes to make life easier for them as they age. Under the program, the person’s heirs are supposed to be able to settle the mortgage for a percentage of the current market value. Many heirs are discovering that not all reverse mortgage companies are adhering to that portion of the program. Others are discovering that the reverse mortgage is underwater.

Some heirs are reporting that reverse mortgage lenders are seeking a foreclosure on the home within weeks of the homeowner’s death. Sadly, not all heirs know their rights when it comes to reverse mortgages. In some cases, that lack of knowledge will lead to them losing the home their parent owned.

One important point for Texas residents to remember is that the reverse mortgage company has to give you up to 30 days to decide what you want to do with the home. If you want to keep it, you are allowed up to six months to find financing. Also, remember the 95 percent rule. Lenders have to allow you to buy the home back at 95 percent of the current market value. If you are dealing with a parent’s reverse mortgage and a potential foreclosure, getting answers to any questions you have and learning your rights might help you to keep the home.

Source:El Paso Southwest Senior, “Bitter inheritance” Jessica Silver-Greenberg, May. 01, 2014

While the economic world went about its business in 2006, none suspected they were inside a bubble about to burst. When it did deflate, so went the dreams, hopes and savings of many, down the drain. There were multiple victims to this housing bust, including commercial property, as evidenced this week by a hotel chain that is facing the loss of another property.

The manager of the former Doubletree property on NW 53rd street has 183 rooms and had been in deep litigation five years ago when a bank in Texas filed a foreclosure suit against the hotel parent company and a “managing member.” That individual is now facing a federal indictment.

After the Texas bank won a previous foreclosure judgment against the Boca chain, with mortgage interest and fees in excess of $25 million, the hotel was scheduled to be auctioned. But, the owner filed for Chapter 11 bankruptcy protection a day before the auction in order stop the foreclosure auction and an almost $37 million judgment.

Identifying unsecured claims were over $100,000. The parent company of the hotel chain had lost properties in Detroit, Pittsburgh and Palm Beach County.

The managing member is listed as the same person in the litigation two years ago. Although he was indicted in Chicago two years ago on federal fraud charges, he was allegedly also accused of misappropriation of funds on a charge related to the hotel loans in Pittsburgh and Boca Raton.

While the indicted individual’s criminal case is pending, the debtor’s legal spokesperson indicated the manager is out of the country,. Since he failed to appear at his court arraignment, he has been declared a fugitive by the federal court.

She has issued a statement that regardless of the charges, the hotel remains in good condition, and there has been interest by various outside groups to purchase it.

Regardless of what state you may live in, many homes and commercial businesses were lost during the mortgage crises several years ago. Foreclosures and bankruptcies are words that strike terror in the hearts of most people, but there are factors to consider on all sides of real estate issues. It is vital to make sure you have proper advice and professional care during all financial and legal aspects of any property transfer. Your financial present and future may depend on it.

Source:South Florida Business Journal, “Boca Raton hotel owner files Chapter 11 to halt foreclosure” Brian Bandell, Feb. 28, 2014

The threat of a foreclosure can make you feel terrible and like you’re losing the place you call your own, but you may be surprised to hear that delinquency mortgages in Texas have been as high as one percent recently. What does that mean to you? It means that around 39,000 foreclosures were completed in all of Texas in 2013, which makes Texas the number 4 state on the National Foreclosure Report from CoreLogic.

According to the story from Feb. 10, by the end of Dec. 2013, one percent of all mortgages left outstanding in Texas were considered to be in serious delinquency. Serious delinquency occurs when home owners have not paid their mortgage payments for 90 days or longer. In the United States, the average percentage of homes in serious delinquency is 2.1. While Texas may be doing better than some areas, the housing market is still following national trends.

When considering deeply underwater mortgages, which are mortgages where the loan-to-value ratio is 125 percent or higher, a homeowner could be left owing 25 percent or more on their home than it’s worth. In Texas, around 11 percent of homes were considered deeply underwater in Dec. 2013. That’s about 400,617 homes. In the U.S., that number is an astonishing 9.3 million residential properties. However many that seems, it’s actually a decrease from the 10.9 million homes deeply underwater in Jan. 2013, according to the story.

Much of the loan-to-value ratio problem came about during the downturn of the U.S. housing market. When homes lost their values, even selling wouldn’t result in getting out of debt. For some, that means foreclosure, but there are options for each individual case.

Source:Go Banking Rates, “Texas Among Top 5 States for Completed Foreclosures” Amanda Garcia, Feb. 10, 2014

Most of us have heard more about home foreclosures in the past five years than ever before. If you haven’t been involved in one, you probably know someone who has. Texas has had their share of people being dislocated during the recession. However, like everything else, there will be companies trying to take advantage of every situation, including foreclosures.

Numerous ads have also been on the market with mortgage companies promising to help lower rates with refinances or companies promising to help prevent foreclosures. In addition, some banks have even been accused of using unfair practices to drive people into foreclosure.

Bank of America is one such bank. Recently, they lost a case against a man who claimed that “unfair and deceptive” practices resulted in him losing his home. Bank of America has allegedly been accused before of tactics such as stalling homeowners in loan modifications, dishonestly denying modifications and rewarding staff for deliberately contributing to homes being foreclosed on.

The 32-year-old crane worker in this case lost his home to foreclosure by Bank of America in 2009. He claims that he was told not to make his house payments in order to qualify for a loan modification; however, once he was delinquent on his payments, he didn’t qualify for the loan modification. By this time, he was too far behind to bring his mortgage current.

He also claims that BANA consistently contacted him, offering to help him refinance, which he wanted to do, but they would not help him do it or tell him what he should do. He did not want to lose his home. He told them he would do whatever he needed to.

Bank of America allegedly could still appeal the case. The man’s attorney stated that he had never seen a Superior Court overturn a home foreclosure sale that occurred four years ago. He also noted that the trustee on the home, ReconTrust, was a subsidiary of Bank of America. That would make them biased in the foreclosure action.

People who are facing foreclosure may be able to contest a foreclosure action on their home in a court of law if they believe their mortgage company is using unfair practices. Attorneys can investigate to ensure that all actions taken by the mortgage company are above board and legal. In this market, too many companies are looking for loopholes to take advantage of unfortunate situations.

Source:;thestranger.com, “Judge Overturns Bank of America Foreclosure” Ansel Herz, Feb. 05, 2014