Underwater mortgage settlements are possible for homeowners in foreclosure. Citigroup as reported in the Bloomberg news article Citigroup Settles Fraud Cases Tied to Texas Mortgage Assigner settled at least 5 claims by borrowers.
What Was The Foreclosure Defense?
The borrowers who received their settlements in their underwater mortgage foreclosure proceedings claimed as their foreclosure defense that the bank had filed fraudulent mortgage documents.
These borrowers had filed bankruptcy to forestall or stop their foreclosure proceedings. That took their cases into the federal bankruptcy court. Linda Tirelli, the borrower’s attorney in the bankruptcy court, made the following claim according to the Bloomberg report:
“Citigroup created and filed the assignment after proceedings began because it otherwise couldn’t prove its right to collect the debt, she wrote in an e-mail. The bank denied the allegations and didn’t admit liability in the settlement.”
Are Banks Willing To Settle In Foreclosure Proceedings?
According to Bloomberg the banks are willing to settle when they are clearly caught with their pants down.
“Citigroup paid almost $82,000 in opponents’ legal costs when settling challenges to four bankruptcy claims that used Orion letters in 2010, according to agreements filed with federal bankruptcy courts in New York and Arkansas.”
Do You Have A Foreclosure Defense?
What kind of a foreclosure defense do you have for your underwater mortgage? Do you know what the banks have been doing with your mortgage note? Have they been doing proper assignments? Did they have the right to assign your note in the first place?
All of these are questions you need to consider when you’re caught in a foreclosure proceeding.
In terms of a foreclosure defense, we at Mortgage Debt Reset consider all these questions and more to come up with a way to give you underwater mortgage relief.
To get more details about how our program works, take a look at our Mortgage Debt Reset Program. Just follow the Find Out More About Our Mortgage Debt Reset Program link and sign up to receive our free no obligation information package.
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