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Foreclosure Law

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Foreclosure Law Practice Description

Foreclosure law professionals assist lending institutions, bankers, and property owners in the foreclosure process. On the plaintiff side, foreclosure professionals represent lending institutions, mortgage bankers, and other grantors of credit in foreclosure, bankruptcy and related matters. On the defense side, foreclosure professionals help protect property owners from losing their property.

Why Foreclosure Law Is Hot

As the economy deteriorates, more homeowners are struggling to keep up with mortgage payments. Some experts estimate that as many as 10,000 foreclosures occur every day in the United States. Outdated state laws, such as fast-track foreclosures and excessive penalties, are exacerbating the national foreclosure epidemic. Consider the following statistics from the Mortgage Bankers Association:

 

  • 1 out of every 200 homes will be foreclosed upon.
  • Every three months, 250,000 new families enter into foreclosure.
  • One child in every classroom in America is at risk of losing his/her home because their parents are unable to pay their mortgage.

 

The national foreclosure crisis has created a growth in foreclosure law and a demand for legal professionals who can help protect the rights of lenders, investors, business owners and homeowners and guide them through the foreclosure process.

Foreclosure Law - Job Duties

Prosecution

On the plaintiff’s side, foreclosure law practitioners help lenders, creditors and loan servicers collect money owed to them. Foreclosure law practitioners:

 

  • Conduct judicial and non-judicial foreclosure sales;
  • Collect on collateral and deficiency balances;
  • Conduct forfeiture proceedings;
  • Drat deeds in lieu of foreclosure, loan forbearance agreements, loan modification agreements, and loan sale agreements;
  • Help lenders manage troubled assets in their loan portfolio;
  • Assist lenders recoup their capital investment;
  • Pursue repossessions;
  • Litigate judicial foreclosures, quite title actions and post-foreclosure evictions;
  • Represent clients in bankruptcy court.

 

Foreclosure law also involves commercial foreclosures – a foreclosure against a business such as a restaurant, factory, retail establishment, or commercial office building. Commercial foreclosure is a complex process that may involve a number of issues such as tenant rights, assignments of rents, separate sales of pledged collateral, and UCC liens on equipment, furniture, goods and other items of personal property not connected to real estate.

Defense

Foreclosure law also involves protecting the rights of property owners and saving property from foreclosure. Foreclosure law practitioners:

 

  • Advise homeowners regarding available non-bankruptcy options;
  • Negotiate forbearance agreements, short sales, refinancing agreements or mortgage modifications to create an alternative payment plan that avoids foreclosure;
  • Pursue claims for predatory lending practices such as improper disclosure of loan terms;
  • Mitigate fees and improper prepayment penalties;
  • Advise clients regarding the debt relief available under the Bankruptcy Code;
  • Advise clients of their rights under federal and state unfair debt collection practice laws;
  • Help shape legislative reform in foreclosure laws.

 

Related Practice Areas

 

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