Massachusetts Courts Have Given The Green Light To A New FHA Foreclosure Defense Strategy
However, that doesn’t make the process of saving your home any less painful. You still need to deal with local judges who are clueless when it comes to lending laws.
One particular FHA foreclosure defense strategy that seems to be working with the courts is 24 CFR 203.604.
24 CFR 203.604 requires a face-to-face meeting between the lender and the homeowner within the first 61 days of the default to find a solution. If they don’t comply with this law, then they can’t foreclose. However, most mortgage servicers and foreclosure mills ignore this law and for good reason. It delays them from cashing in on the FHA insurance claim.
This where you can strike your servicer with the poisonous venom of a Scorpion and stop them in their tracks. Courts in both Ohio and Massachusetts have upheld the argument that the face-to-face meeting is mandatory.
However, there is one caveat to the rule. The lender must have a banking or lending presence within a 200-mile radius of the property in default.
Wells Fargo Attorney David Fialkow attempted to argue in JOSE vs. WELLS FARGO BANK that because Wells Fargo doesn’t have mortgage offices in Massachusetts, Wells Fargo is exempt from the rule. However, the Massachusetts Appellate Court noted that there were Wells Fargo bank branches in Connecticut and Connecticut is under 75 miles away. In other words, 200 miles is 200 miles regardless of state lines.
Massachusetts Superlawyer Glenn Russell Successfully Uses This FHA Foreclosure Defense To Stop An Eviction!
This summer, Orlans PC initiated a post-foreclosure eviction against the Camara family in Plymouth, Massachusetts.
The only problem was that Orlans PC screwed the pooch when they did the foreclosure.
The Camaras had an FHA mortgage. That meant that their lender Wells Fargo was required to have a face-to-face meeting with them to negotiate a loan modification within the first 61 days of the default.
Orlans and Wells Fargo never did this and they know they didn’t
Russell argued that the Camaras were never given an opportunity for a face-to-face meeting to negotiate options regarding reinstating the mortgage as required under 24 CFR 203.604.
That’s what Glenn Russell was going to explain to the judge. However, Orlans lawyer Nicholas Lajoie never showed for the hearing and his motion for summary was denied.
Also, read more about FHA Foreclosure Defense at: