What happens when the lender and the borrower agree to delay the foreclosure trial or delay the foreclosure sale because of a pending modification (as required under the 2012 National Mortgage Settlement) or short sale? In too many Florida courts – the judge says NO and the borrower loses the home! Florida Attorney General Pam Biondi sent a letter this week to the State Chief Judges to tell them that they could be violating – or frustrating the intent of the National Settlement Agreement.
“We have done our best to inform the courts about the requirements of the national mortgage servicing settlement and will continue that dialogue with the judiciary to ensure that homeowners’ rights are protected,” said a statement released by the Attorney General’s office Tuesday.
Our office has indeed experienced this ram-rod approach by the judges – especially where the dockets are still packed with foreclosure cases. Some judges can be expected to say in the beginning of the court that “I am granting no sale cancellations today”. And that is even before hearing from the counsel, who then one by one ask for cancellations and they get almost without exception, denied. What is troubling is that some of these cancellations are being requested by the lender under the guidelines of the National Mortgage Settlement which was designed to protect homeowners.
The top state law enforcement official must have had an earful from attorneys and borrowers on this judicial practice. The Palm Beach Post reported today, “It’s “highly, highly unusual” for an attorney general to directly address the judiciary in a letter, said Bob Jarvis, a Nova Southeastern University legal ethics professor. But he doesn’t believe it violates rules regarding separation of government powers if Bondi is just bringing information to the court’s attention.
“Attached to the letter is a fact sheet about the settlement. The $25 billion agreement between 49 attorneys general and Bank of America, Citibank, JP Morgan Chase, Wells Fargo and Ally Financial is in effect until Oct. 4, 2015.
““There’s no encroachment if it’s a matter of information and courtesy,” Jarvis said about the letter.”
Realtors are particularly miffed by the guidance they get from the National Mortgage Settlement and the results they get in Florida courts. Whereas it seems that their clients are conforming with the lender requirements, the court then throws in a monkey wrench that kills the deal and commission that has so much work already invested.
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© 2013 Richard P Zaretsky, Esq.
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com.
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