Mortgage Foreclosure SettlementPosted on February 15, 2012 in Arizona Law Regarding Business and Real Estate
Some folks love and others hate the recent $25-billion federal-state mortgage foreclosure settlement, but there’s no getting around one huge and significant issue: Besides, prolonging the crisis, there’s a large, sink hole right in the middle of it. The hole is that if your home loan has been bought from your lender by Fannie Mae or Freddie Mac, you’re not eligible for the mortgage relief encompassed by the deal.
Since Fannie and Freddie control well more than half of all outstanding mortgages, this shortcoming looks to be what engineers would call “non-trivial.” But it is nothing like this. It means ½ of the pool is now not eligible for the program. But the goal in restructurings is to prevent homeowners from re-defaulting after a modification, and the record shows that forgiveness is much better than any other option in achieving that. This program will NOT help as designed.
We focus on fraud, securities, business disputes and commercial loan workouts at the law firm of William A. Miller in Scottsdale Arizona. Call Bill with questions at 602-319-6899
William A. Miller, PLLC 8170 North 86th Place, Suite 208 Scottsdale, Arizona 85258