The Real Deal Miami

Foreclosure defense law firm claims lenders violating US rules

Jacobs Keeley partners said they’re prepared to sue against lenders
From left: Court Keeley, 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.

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

  • Fannie Shame

    That is great news – The law is called dual tracking! They OCC, The CFPB and the Attorney General will gladly take your claim, and then do absolutely nothing about it. They will side with the bank and say you need your private attorney to look into it.

    Then the attorney, will corner you and tell you that you have to let them have a portion of your upside for “recovery”, or drown you with monthly fees. Ultimately then place a lien on your home. So instead of having the lender make money from you the lawyer will.

    No one will help you unless you have plenty of money to pay your lawyer, and if you do have plenty of money then why do you need a mortgage modification?

    Does any of this make sense? Of course not, — Moral of the story, you are a sitting duck unless you are very lucky and have such a strong case that you could almost represent yourself.