search

The Real Deal Logo

Trending

H-E-B snags 21 acres in Celina, hinting at development boomH-E-B snags 21 acres in Celina, hinting at development boomTrump accused of making false statements about $50M Chicago tower loanTrump accused of making false statements about $50M Chicago tower loanHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudHGTV’s “Mr. Flip It” gets four years in jail for $10M fraudChetrits have a problem in PassaicChetrits have a problem in Passaic
South Florida

Foreclosure defense law firm claims lenders violating US rules

From left: Court Keeley and Bruce Jacobs
From left: Court Keeley and Bruce Jacobs

A foreclosure defense law firm in Miami is reportedly planning on taking on lenders that it claims are violating federal mortgage servicing rules.

Jacobs Keeley partners said they’re prepared to sue against lenders that continue to pursue foreclosure sales while clients await decisions on mortgage modifications, according to the published reports.

Sign Up for the undefined Newsletter

The rules state that mortgage lenders must confirm each applicant can afford a mortgage before issuing a loan. Lenders also must comply with new protections for struggling homeowners, including rules that could prevent foreclosure sales if borrowers take steps to modify their mortgages, the Daily Business Review reported.

Attorneys from Jacobs Keeley say that mortgage servicers are benefitting from the region’s clogged foreclosure dockets and judges’ attempts to cut down on the backlog despite the rules. [Daily Business Review] — Katherine Kallergis