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Is this Illegal Foreclosure?

Marietta, GA |

I have not been paying my mortgage for some time now but later after some thoughts I decided to call the mortgage companies to allow me to Sign over the ownership(Deed-in-Lieu) since I have got two mortgages. My first mortgage suggested that I email the offer to the second mortgage to see if they will settle for a specific amount. I did like i was told. I was also told to move out of the property which i did. A few days later, I traveled to my country and on getting back after two months, the first mortgage now took over the property by putting their lock box and winterized the entire property.
Now, i am receiving letters from the mortgage company saying the property is under accelerated Foreclosure. Please, advise me, what do I do? I am currently pregnant and homeless!!!

Attorney Answers 3

Posted

So far you have failed to do the one thing that everyone in financial distress should do. Lenders lie and engage in anti-consumer practices every day. Much of their conduct is frankly despicable, and sometimes it is even illegal. Because of that, you should have seen a lawyer long ago. You may or may not have remedies to protect or save the home, and you also need to look at what to do to protect you from an enormous suit (and future garnishment) by teh 2nd mortgage lender (and maybe also the first). This means see a lawyer immediately (as in today).

If your foreclosure is set for February, you are nearly out of time. At this late stage, likely your immediate remedy may be Chapter 13 (or 7) bankruptcy. Feel free to contact me at 404-768-3509 if you wish to look at options, but don't wait another day.

If you find this answer helpful, please mark it here on AVVO as helpful. In answering you, I am attempting to communicate general legal information and am not representing you (and am not your lawyer). Do feel free to call me at 404-768-3509 if you wish to discuss actual representation (the phone call also does not retain counsel; that requires an office visit and appropriate paperwork). In that a forum such as this provides me with limited details and doesn't allow me to review details and documents, it is possible that answers here, while meant to be helpful, may in some cases not be complete or accurate, and I highly recommend that you retain legal counsel rather than rely on the answers here. (You can also email my office at geaatl@msn.com . An email also does not retain my office, but can help you get an appointment set if you prefer not to call). I am happy to discuss possible representation with you. Any information in this communication is for discussion purposes only, and is not offered as legal advice. There is no right to rely on the information contained in this communication and no attorney-client relationship is formed. Nothing in my answer should be considered as tax-advice. To ensure compliance with IRS Circular 230, any U.S. federal tax advice provided in this communication is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or other transaction addressed herein. I am also required to advise you, if your question concerns bankruptcy, that the U.S. Congress has designated Ashman Law Office as a debt relief agency that can help people file bankruptcy.

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Posted

As was mentioned in the earlier answer - you need to talk to a good bankruptcy attorney now.

Bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. I am attaching a link to some free videos that explain how bankruptcy works. Most Arizona consumer bankruptcy attorneys offer a free consultation about the basics of bankruptcy.

Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don’t assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them – the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney.

When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. Check them out with the various ranking sources: such as www.AVVO.com, and the State Bar. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of “bankruptcy” attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them.

IF YOU FOUND THIS ANSWER "HELPFUL" or "THE BEST ANSWER," PLEASE MARK IT SO AS AVVO AWARDS THE ATTORNEY POINTS. All attorneys providing answers on this site are donating their time and not financially compensated.

This firm is in the business of helping people and companies file for bankruptcy protection. Therefore, the bankruptcy code requires that we call our firm a "debt relief agency." This information is provided for general information purposes only and is not intended to be a legal opinion, legal advice or a complete discussion of the related issues. Nor is this advice intended to create a client - attorney relationship. Every individual's factual situation is different and you should seek independent legal advice from an attorney familiar with the laws of your state or locality regarding specific information.

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Posted

While some of the things you posted are curious, a couple things stand out. One, you have not been paying your mortgage for some time. That means you are in default and the lenders will foreclose. Second, you mention a letter about foreclosure (which should be no surprise), but don't tell us who it is from, exactly what is says (there is no "accelerated foreclosure"), and if a foreclosure date has been set (such as the first Tuesday of February) or if it has already taken place. If there is no foreclosure, there is no illegal foreclosure. Details and facts matter. As far as the second lender taking over the property, perhaps they thought you abandoned. Did you ask them?

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