Fannie Mae, whose Net Income is $3.9 billion and its Comprehensive Income is $4.0 billion for the third quarter (Q3) of 2014 is going after old mortgage debts that are 5 years-to-decades old.
When the housing market bubble burst, hundreds of thousands of Americans lost their homes through foreclosure. Many walked away from homes whose worth dropped so drastically (underwater) they knew it would take 20-30 years to recoup the equity they lost. Others had lost their jobs, depleted their savings and retirement funds only to find themselves unable to make mortgage payments. They hung on as long as they could until foreclosed on, having to pack up and leave their homes.
Fannie Mae is a government-controlled housing finance company that lend residential mortgage money to low-moderate and middle-income Americans. Like other lenders, Fannie Mae was left with millions of dollars worth of defaulted mortgage loans when the housing market collapsed. All told – more than $1 trillion in foreclosed loans were lost to the banks during the crisis.
The banks sold the majority of the homes, but the proceeds of those sales more often than naught it was not enough to cover the entire loan, penalties, fees, legal motions and bills. Lenders want their money back.
The borrowers who walked away from their homes have gotten new jobs and have begun to rebuild their lives – and their finances. The banks, and in particular Fannie Mae figure now, when the borrowers are getting back on their feet, is the time to go after those borrowers.
Lenders are using a legal maneuver called “deficiency judgment” that ensure the lender can go after borrowers for decades. A deficiency judgment is secured against the borrower for the difference still owed after the sale on the foreclosed home. If the lender sold your home for $100,000 but you owed $280,000, the judgment against you is the difference owed – or $180,000 plus fees and miscellaneous expenses. With a deficiency judgment, the lender can freeze your bank accounts and garnish your wages. You may also owe money to the IRS.
In Colorado, most foreclosures are non-judicial, which does not result in a judgment. The lender must file a separate lawsuit if the foreclosure sale results in a deficiency. There is a potential for these lawsuits to be barred by statute of limitations. There are ways to avoid or handle the deficiency through a qualified attorney.
Bank advocates say homeowners should pay what they owe – no matter how much time has gone by. Consumer advocates argue that deficiency judgments knock the borrowers off their feet – again – after they’ve just begun to recover from financial collapse. Further, they say the banks bear some responsibility making unsustainable loans to them in the first place.
If you are facing a deficiency judgment, or facing foreclosure, call Gantenbein Law Firm for a consultation. Gantenbein Law Firm has many options and alternatives to consider and are available to you.
If you are facing a post-foreclosure deficiency, contact foreclosure defense attorney Keith Gantenbein.
Denver foreclosure defense attorney Keith Gantenbein is a premier foreclosure attorney, serving all of Colorado. The Gantenbein Law Firm is the only Colorado foreclosure defense law firm to have an in-house loan modification specialist. Our loan mod specialist- whose work experience includes SPS loan mod servicing- works with the attorney on your case to maximize your home retention options. Contact Gantenbein Law Firm for a one-hour consultation to discuss your foreclosure or post-foreclosure issues: 303-618-2122.
Keith Gantenbein, of The Gantenbein Law Firm, Colorado foreclosure defense practice includes: post-foreclosure deficiencies, loan mods, Rule 120 Foreclosure Hearings, post-foreclosure litigation, foreclosure prevention, Colorado foreclosure help, foreclosure help in Denver, judicial foreclosure, HOA foreclosures, evictions, foreclosure settlement, foreclosure settlement, foreclosure assistance, short sale assistance, foreclosure assistance, cash for keys, loan modifications, foreclosure set-aside, and all other foreclosure defense legal help.
His real estate practice includes real estate litigation, title issues, real estate contracts, quiet title actions, lien issues, real estate closings, mortgage negotiations, contract and contract disputes, lender liability, evictions, and landlord/tenant. Keith Gantenbein also practices HOA defense- including helping homeowners with defense against wrongful covenant enforcement, HOA lawsuits, foreclosures, and HOA liens.
Gantenbein Law Firm practice includes Colorado and Federal Tax Law, Colorado Foreclosure Defense, Colorado Real Estate Law, Colorado Business Law, Credit Dispute and Credit Repair, and Colorado Wills & Trusts. For more information, visit our website: www.gantenbeinlaw.com