Recent figures show that the rate of home foreclosure is declining. According to April reports from RealtyTrac, foreclosure rates in the U.S. fell as much as 27 percent. That represents a three-year low.
The decline, however, doesn't apply to all Americans. Thousands of homes are still in foreclosure as homeowners have difficulty making their mortgage payments. When a homeowner is unable to make their mortgage payment, the bank will likely try to foreclose on the loan.
One growing concern for homeowners who are in foreclosure is the question of who actually owns their mortgage. In the years leading up to the great recession, banks throughout the country consolidated mortgages and sold them to other banks and investors. While this common practice may have meant big bucks for the banking industry, as the number of foreclosures rose, it became clear that the paper trail following the sale of mortgages was unclear, at best.
The problem of paperwork became an even bigger issue when it was discovered in 2010 that many banks were fraudulently signing foreclosure documents. In some cases, robo-signers were doing the work that was said to be completed by lawyers who are required to evaluate and analyze the critical documents. As a result, many homeowners who are in foreclosure can't locate the important legal documents related to their mortgage and, if they can, the documents are not properly signed.
Ask the Bank for Mortgage Documents and Call a Lawyer
Homeowners who are having difficulty determining the owner of a mortgage should request legal documents from the bank or mortgage servicer. The bank should be able to provide a cursory answer to the question of who owns the mortgage. If the bank or mortgage servicer is unable to provide the answer, a home foreclosure attorney may be able to assist you in locating the mortgage owner.
If the bank or mortgage servicer is able to provide the documents, it is recommended that you consult with an attorney to review the foreclosure documents. A knowledgeable attorney can help to fight against the home foreclosure if the documents were improperly signed.
In some cases, filing for bankruptcy may be the best way to save a home from foreclosure, even if there are issues with the mortgage or the mortgage paperwork. Filing for Chapter 13 bankruptcy may be able to provide relief to a homeowner. Chapter 13 bankruptcy provides homeowner with the opportunity to create a repayment plan to establish more affordable mortgage payments.
To learn more about the options available to Nashville homeowners who are facing foreclosure, contact a skilled bankruptcy lawyer.
