Homeowners

Amid confusion over whether a federal judge can still decide if an Aurora woman's constitutional rights are violated by Colorado foreclosure laws, U.S. Bank has filed a lawsuit in state court to take the house.

A flurry of documents filed in the federal lawsuit Lisa Kay Brumfiel brought against the bank and some of the state's top foreclosure lawyers indicate that a giant question mark remains: whether Colorado foreclosure law violates the 14th Amendment right to due process and whether a federal judge can still take on the issue even if it doesn't affect Brumfiel anymore.

U.S. Bank, the trustee for the investment trust that bought Brumfiel's note shortly after she signed the loan in 2006, argues that the entire issue is moot since it dropped its public-trustee case against her.

An Aurora woman is fighting to keep her home, without the help of any lawyers. Lisa Brumfiel says her fight is one of biblical proportions. “I completely see the analogy between this story and David and Goliath.”

Brumfiel bought her home in 2006, but fell behind in her payments, and says U.S Bank issued a foreclosure notice in 2011. Here’s where it gets tricky. Her original loan was with First Franklin Mortgage.

In court, Brumfiel asked to see proof that U.S Bank had the rights to her home, but they had no paperwork. She eventually argued the foreclosure process violated her 14th amendment rights to due process, and a U.S District judge agreed.

http://kdvr.com/2013/05/15/womans-foreclosure-fight-is-all-about-constit...

A new partnership is taking place in order to prevent home foreclosures in Grand Rapids.

The Michigan State Housing Development Authority (MSHDA) Step Forward Michigan Faith Partnership campaign is designed to engage clergy, congregants and leaders of all religions in the fight against home foreclosure. It also promotes awareness that free help for homeowners, who are at risk of foreclosure, is available.

"It gives us a viable tool that doesn't work from already deleted assets. We have more requests than we have income, and now we're able to work in co-partnership with the government, a state entity, a public and private partnership, that allows us to some real tangible hope and help," said Pastor Jerry Bishop of Lifequest Ministries. 

http://www.woodtv.com/dpp/news/local/grand_rapids/new-program-to-help-pr...

If you’ve read AGBeat for any number of years, you’ve read endlessly about cases wherein banks foreclose on the wrong address, homes that no longer exist due to storms, or worse, when a payment is made early. Yet another homeowner has gotten the dreaded, nasty foreclosure filing papers on his Orlando door, according to WFTV because he overpaid.

Having never missed any payments, the man is likely in disbelief as he says he was offered a loan modification last year, and should he make four consecutive monthly payments on time, a permanent modification would be awarded and a lower rate would be given. During the trial period, he overpaid, so Wells Fargo would no longer accept payments and began the foreclosure process. 

http://agbeat.com/housing-news/wells-fargo-foreclosing-on-home-for-overp...

Considering the hoops that too many borrowers have to go through to obtain mortgage modifications, the news from the Treasury Department wasn't encouraging.

In an April 24 report to Congress, the Office of the Special Inspector General for the Troubled Asset Relief Program, or TARP, reported that homeowners whose mortgages had been modified under the federal Home Affordable Mortgage Program were defaulting "at an alarming rate."

Data from the Treasury Department, which oversees HAMP, showed that the longer a homeowner remained in the program, the more likely he or she was to re-default out of the program.

http://www.chicagotribune.com/classified/realestate/sns-mct-the-philadel...

Q:   I do not have a lease, This is a 4 family apartment. The Summons states , the bank vs the landlord, his business, and two people who do not live here anymore. One moved out over 10 years ago the other moved out 2 months ago. My name and the other tenant was not on the summons just referred as John or Jane Doe. The sheriff knocked on the door, handed the summons and wrote down my name as a tenant at the apartment.

A:    Under the Federal Protecting Tenants at Foreclosure Act of 2009 (see link below), the requirement of 90 days' notice only applies to "bona fide" tenants, those tenants who are not related to the mortgagor and who are paying rent at fair market value.  

http://www.avvo.com/legal-answers/i-received-a-summons--from-the-state-of-wis--my-la-1246914.html

Consumer groups are pushing for rate cuts up to 50 percent for the biggest “force-placed” insurer in Florida, arguing rates scrutinized at a Monday hearing punish struggling homeowners and are inflated by massive kickbacks to mortgage servicers.

American Security Insurance Co.’s proposed rate cut: Zero.

Lenders impose “force-placed” insurance on homeowners who fall behind on payments or otherwise let property insurance lapse. The premiums are often double or triple the normal cost, and sometimes more.

http://www.mypalmbeachpost.com/news/news/big-insurer-seeks-no-florida-ra...

Q:    Will the 2nd mortgage and all junior liens be wiped out?

A:    Liens take priority according to the date of their recording. The foreclosure of the HOA lien will wipe out any liens recorded after it was recorded in the public records in the county in which the property is located....

http://www.avvo.com/legal-answers/with-an-hoa-foreclosure-in-florida--will-only-the--1227609.html

Q:    We purchased a home in a foreclosure that we now reside in. After the foreclosure, the bank filed a motion to set aside the foreclosure due to an error on their part. After nearly a year, they lost the motion and the appeal. We filed a motion for attorney fees but the judge denied it? Is this typical?

A:     In order to receive an award of attorney's fees there must be a basis for fees either through a statute or a contract. Without more information, it is difficult to say why you might have been denied or what your chances on appeal might be.

http://www.avvo.com/legal-answers/bank-tried-to-set-aside-foreclosure---they-lost-an-1219653.html

Just one month after the seventh round of funds was appropriated by Congress, the National Foreclosure Mitigation Counseling program is making $70.1 million available to various agencies across the country.

Beneficiaries include 30 state housing finance agencies, 17 HUD-approved housing counseling intermediaries and 72 community-based NeighborWorks America member organizations, which will use the money to provide counseling to families and individuals at risk of losing their home to foreclosure.

Link To Article >>>>

Q:    BANK says it is already on foreclosure but there no date yet for deed of sale

A:    Foreclosure is a process. It begins with the service and filing of a Notice of Default. Once that notice records, the house is "in foreclosure." 90 days after the NOD records, the trustee may serve and record a Notice of Sale which will set the date for the sale. Unless the sale is postponed, the trustee will sell the property on the sale date to the highest bidder and prepare and record a Trustee's Deed Upon Sale. Once the deed records, the trustee has "foreclosed." Until the TDUS is prepared and records, the borrower is still the owner of record. After that time the owner is the purchaser at the sale....

http://www.avvo.com/legal-answers/who-is-the-owner-of-the-house-if-it-was-already-fo-1237745.html   

Q:    This was the notice received today from my attorney.

A:    The Affidavit as to Amounts Due and Owing is usually filed prior to a hearing on a Motion for Summary Judgment. It is the way the bank testifies as to outstanding interest, principal and other charges. If it was withdrawn it likely means that it was not calculated correctly and will have to be resubmitted....

http://www.avvo.com/legal-answers/what-is-the-meaning-of-a-withdrawal-of-affidavit-a-1260869.html

Q:    she was told she had 20 days to respond, she hired a Foreclosure Attorney, she paid his Fee , he cashed the Check and that was about it, here she is almost 5 Month later and a judgement has been entered against her in Court ( she was not informed of the Court Date ) and the Lawyer is not returning her calls, at this there is no evidence that he even tried to contact GMAC or their Lawyers and he did not file any Papers with the Court that he was the Attoeney on Record, what should my Daughter do at this point ?? We need some advise please.

A:     Your daughter should seek the assistance of another attorney, immediately. There may be ways to open the judgment but promptness is critical....

http://www.avvo.com/legal-answers/the-beginning-of-october-2012-my-daughter-was-serv-1156423.html

Q:    Just learned person who was responsible for mortgage will be served.

A:    Transferring the title through a quit-claim will not affect the liability of whomever signed the note. By the same token, the fact that you are on the deed to the property does not create any personal liability for you to repay the loan. if you did not sign the NOTE, you are not liable for anything that is owed to the lender, and a foreclosure on the mortgage will not result in a money judgment against you....

http://www.avvo.com/legal-answers/lender-filed-lis-pendens--can-you-do-a-deed-removi-1251611.html

On January 16, 2013, just after 5 AM, 12 sheriff's deputies and 10 Portland police officers forcefully evicted the original Portland foreclosure fighters - Debbie and Ron Austin - from their NE Portland home. The eviction was at the demand of the government sponsored and funded mortgage finance vehicle, Fannie Mae.

The family was evicted, but their home is not empty. A force of armed private security guards from McRoberts Security was immediately installed in Debbie Austin's home. The guards have been on 24-hour duty in the home ever since.

http://truth-out.org/news/item/16080-fannie-mae-evicts-family-in-foreclo...

The owners of an Aurora woman's mortgage said they absolutely will file a foreclosure lawsuit to take her house because of claims that Colorado's public trustee process is unconstitutional.

In a request to dismiss a federal lawsuit against them, lawyers for U.S. Bank on Thursday said they'll pursue a foreclosure against Lisa Kay Brumfiel in Arapahoe County District Court "to remove any due process concerns" that come from a public trustee foreclosure.

U.S. District Judge William J. Martínez stopped the Arapahoe County public trustee from auctioning the house until he could hear evidence that Brumfiel's constitutional rights were violated.

http://www.denverpost.com/business/ci_23262594/lawsuit-take-aurora-woman...

Here’s what can happen when people get lulled into a false sense of security listening to the news stories about how our housing markets have rebounded and foreclosures are down… we risk losing the things that are helping homeowners.

When the foreclosure crisis began, and for the first few years as foreclosures continued unabated, foreclosure mediation programs were unheard of… in fact, it wasn’t until people realized that HAMP wasn’t really working as advertised and banks weren’t modifying loans in the numbers they should that states started considering making mediation part of the process.

http://mandelman.ml-implode.com/2013/05/bill-to-end-foreclosure-mediatio...

More than 700 Oklahomans who applied for relief under the Oklahoma Mortgage Settlement Fund (Phase I) have received an average payment so far of $11,173.

That’s about five to ten times more than anticipated payouts for victims in the other 49 states, who can expect an estimated payment from just under $1,000 to $2,000 — although administrators of the national deal have yet to release precise amounts.

Oklahoma Attorney General Scott Pruitt announced this week the beginning of Phase II of his state’s compensation program for eligible borrowers. Foreclosure victims who did not meet last year’s deadline to file for relief with the state can do so until Dec. 31, 2013.

http://ecreditdaily.com/2013/05/oklahomas-mortgage-settlement-trumps-nat...

Five years after the mortgage meltdown sparked a wave of home foreclosures, millions of Americans are still in housing "limbo," battling to save their homes despite government programs meant to help them.

Courtney Scott is one of them. Having fended off three foreclosure attempts by her lender, she said she was hopeful that a recent national review of troubled loans ordered by bank regulators would help resolve her long-running effort to modify the loan on her modest suburban Atlanta home.

So the retired nurse and grandmother filled out the paperwork late last year, sent it in and waited. 

http://www.cnbc.com/id/100722965

“The administrator of the estate of Larry Delassus sued Wells Fargo, Wachovia Bank, First American Corp. and others in Superior Court, for wrongful death, elder abuse, breach of contract and other charges.

Delassus died at 62 of heart disease after Wells Fargo mistakenly held him liable for his neighbor’s property taxes, doubled his mortgage payments, declared his loan in default and sold his Hermosa Beach condominium, according to the complaint.”

There are two reasons why I continue this blog and my return to the practice of law despite my commitment to retirement. The general reason is that I wish to contribute as much as I can to the development of the body of law that can be applied to large-scale economic fraud that threatens the fabric of our society.  

http://livinglies.wordpress.com/2013/05/15/wells-fargo-wrongful-foreclos...

http://www.alternet.org/economy/elderly-man-allegedly-dies-court-fightin...

Despite a $3.6 billion foreclosure settlement that had banks sending checks (some of which bounced) to wronged homeowners, many saw the payouts as a Band-Aid on a bullet wound. According to Salon, 679 homeowners who faced foreclosure -- even though they were never once in default -- got checks for just $5,000, while individuals who had loan modifications approved -- but were still foreclosed upon --were offered a mere $300. More than 80 percent of those receiving checks, Marketplace.org reports, will get between $300 and $1,000.

http://realestate.aol.com/blog/on/heres-what-you-can-buy-with-your-forec...

Q:    My mother passed away in 2009, the bank that owned the mortgage immediately started & pushed the foreclosure process after receiving word that my mother passed, she left her home to myself & a sibling; she had an insurance policy which would pay her mortgage balance in full at the time of her death....

A:     Depending on the actual dates involved, you may be time barred by the Statute of Limitations. You need to contact an attorney immediately to go over the full facts of this matter with. There are some disturbing issues that you bring up, but without all the facts, it is difficult to comment....

http://www.avvo.com/legal-answers/sue-bank-for-shady-foreclosure-process--1212716.html

Q:     I contacted Save The Dream and filled out all the paperwork . They said I am a very good candidate for help and the bank said they would work with me on the ECOL . Nobody can help unless My Ex signs the papers giving them permission to talk to each other and look at the finances.

A:       Don't worry about answering foreclosure complaint.  However, with the foreclosure package came a Mediation form
Usually on brightly colored paper REQUEST mediation 

http://www.avvo.com/legal-answers/i-just-received-a-summons-for-my-house-going-in-fo-1142956.html

The Congressional Budget Office released the result of its investigation into the potential costs a widespread mortgage principal reduction program may have on taxpayers' bottom line.

The CBO concludes that, in one scenario, such a program could actually save taxpayers up to $2.8 billion.

Back in November, Rep. Elijah E. Cummings, ranking member of the House Committee on Oversight and Government Reform, requested an investigation into reducing principal for underwater mortgages backed by Fannie Mae and Freddie Mac.

http://www.housingwire.com/news/2013/05/01/widespread-principal-reductio...

Q:    From late 2008 until 2010 I was attempting to modify my mortgage.  There was no reason for the modification to NOT take place. It should have been a slam dunk.

A:    A creditor's violation of the automatic stay of collection efforts is serious, and gives you a viable claim against the foreclosing entities and participants.  A secured creditor can sometimes get the bankruptcy court to grant relief from the stay and permit the foreclosure to proceed, but from you question I infer that relief from stay was not sought or granted in your case.  

http://www.avvo.com/legal-answers/do-i-have-recourse-to-sue-my-lender-for-illegal-fo-1234687.html

Despite rising home prices early in the year, a significant portion of U.S. homeowners with a mortgage — about 44 percent — still owed more on their home than it was worth or didn’t have enough equity to move at the end of the first quarter, according to Zillow’s first-quarter Negative Equity Report.

Zillow’s analysis showed that 25.4 percent of homeowners with a mortgage were underwater on their homes, while another 18.2 percent more were “effectively” underwater, with less than 20 percent equity in their homes.

Taken together, about 22.3 million U.S. homeowners likely don’t have enough equity in their homes to afford a down payment on another home, Zillow said, keeping them in their homes and preventing new inventory from hitting the market.

http://www.inman.com/2013/05/22/nearly-half-of-all-us-homeowners-with-a-...

How did we get here? Given the run-up in values before 2007, appreciation floated all boats. Many consumers bought more house than they could afford and lenders were too eager to help them do it. When things headed south, there were not enough genuine lender efforts to renegotiate loans when they were first in danger of default.

“I was really concerned about doing the right thing,” Matt said. “It (stopping payments) was the toughest thing I’d ever done. There were tears, sleepless nights and family quarrels. We felt we gave it our best shot but got absolutely no help from the lender.”

http://www.spokesman.com/stories/2013/may/05/the-stigma-of-foreclosure-l...

Q:   Foreclosure date was 6-28-2011 and it was a FHA loan. I plan on purchasing the new house 100% on cash. Preferably looking for an answer from a Michigan attorney.

A:   Your former bank will only pursue you on the former residence if the foreclosure and sheriff sale of the home resulted in a deficiency. A deficiency results if your former home sold for less than the amount you owed on the mortgage. I would advise you to go to your local register of deeds office and find your sheriffs deed to determine the bid price of the sale....

 http://www.avvo.com/legal-answers/can-i-buy-a-house-on-cash-after-having-a-foreclosu-1254416.html

So far, after unleashing the first round of payments April 12, more than 2.2 million recipients have cashed or deposited more than $2 billion in checks as of May 9. 

Overall, 4.2 million borrowers are said to be eligible to receive a payment under the foreclosure settlement.

Of that total, more than 3.9 million checks valued at $3.4 billion have been sent.

The payments are the result of agreements between federal regulators and 13 servicers. The agreements replace the Independent Foreclosure Review that was first required through consent orders issued by regulators.

http://www.dsnews.com/articles/more-than-22m-foreclosure-review-checks-c...

According to a new report, people who take advantage of a key federal program to modify their mortgages in an effort to save their homes are defaulting "at an alarming rate."

The report from the special inspector general for the Treasury Department's Troubled Asset Relief Program doesn't say why an inordinately high percentage of owners who take part in the Home Affordable Modification Program, or HAMP, are unable to maintain their loan modifications. The report says only that the longer owners remain in the program, the more likely they are to default again.

http://www.latimes.com/business/realestate/la-fi-lew-20130512,0,7989633....

Just when the local housing market is looking stronger, red flags are emerging in Maryland, with foreclosure activity up triple-digits last month.

Some families, like the Hoovers, are finding it tough to get by. Randy Hoover has worked for 35 years and he and wife Ann have enjoyed owning their home in Frederick since 2001. They received their first foreclosure notification in January. As Ann's unemployment benefits ran out, the family faced unexpected medical bills and with the last of four children in college, there just wasn't enough left over to make December or January's payments. "When I came to the realization I may not be able to make the mortgage payment, it's very scary and terrifying," says Randy.

http://www.wusa9.com/news/local/story.aspx?storyid=259186

Q:    I purchased a condo by paying delinquent HOA fees at auction, subject to mortgage. Certificate of title was issued in my name. My research shows the prior owners mortgage has his last name misspelled, and the property address was written incorrectly. The owner initialed the correction on the property address when signing the mortgage, but nothing was done to correct his name.

A:     This is a loser. Your position does not give you a foundation to eliminate the first mortgage, since your title was from a junior lien. . And , in addition, the validity of a mortgage lien does not depend on the property address.           

http://www.avvo.com/legal-answers/should-i-file-quiet-title-action--1244986.html

Q:   After a foreclosure can a bank pursue the deficiency or is there a law that stops it? Can the gov make you claim it as income if it is forgiven?   What happens to the second mortgage if a foreclosure happens?

A:     There are a number of answers to your questions based on a number of factors. If you are agreeing to allow the foreclosure judgment to occur sometimes you can negotiate that they will waive the deficiency....

http://www.avvo.com/legal-answers/is-there-a-law-in-place-that-stops-the-banks-from--1248540.html

Q:    My main concern is the bank going after me for a deficiency judgment. Is it worth me attending the trial? Would it make a difference? Will I have the opportunity at trial to show the bank that I have zero assets/money to go after? Does the bank take this in consideration at time of the foreclosure trial? What is the likeliness that there will be a deficiency judgment?

A:     I agree with both attorneys above - hiring an experienced attorney to negotiate a waiver of deficiency is your best bet. If you do not desire to retain an attorney, attending the trial will never hurt. You should find out what attorney is handling your case on behalf of the Plaintiff and speak to them about waiving deficiency in exchange for consent to judgment. 

http://www.avvo.com/legal-answers/a-trial-date-for-my-foreclosure-is-scheduled--woul-1190863.html

The timing couldn’t have been better for a family from north suburban Geneva when they hit the jackpot after finding some old Lotto tickets stuffed in a cookie jar.

Earlier this month, Ricardo Cerezo said his wife was cleaning the kitchen in the home they were about to lose to foreclosure. She told him to take the old Lottery tickets out of the jar and have them checked, or toss them out.

“It was either take them, get them checked, or she was going to trash them that night,” he said.

So he took the tickets to a local gas station to get them scanned. The first 8 or 9 tickets weren’t winners.

http://chicago.cbslocal.com/2013/05/16/facing-foreclosure-and-eviction-f...

Q:   In foreclosure what means certificate of mailing copies to US Attorney General / Certified Mail Green Card Attached on docket . Just looking at the docket text of my case and saw this. What does that mean?

A:   My best guess (and without seeing it, it is only a guess) is that you owe the IRS money and they have a lien against your property. The Bank listed everyone with an interest in your home which includes those with liens. 

http://www.avvo.com/legal-answers/got-served-foreclosure-papers-and-plan-to-fight-it-1251222.html

Q:    have not made payments in 3 years. just received lis pendens papers saying file a response in 20 days. It appears the response must be made in 20 days. How do i respond?

A:     If indeed you were married, and your spouse did not sign the mortgage, this is a technical error that may prevent the bank from completing its foreclosure. Obviously, you need to have an attorney review the records and file an answer in defense of the foreclosure within the 20 day period or you may lose your home by default.

http://www.avvo.com/legal-answers/foreclosure--if-a-spouse-did-not-sign-the-refinanc-1163606.html

Q:   Why do they get served? What does it matter?

A:   If you are referring to the entry in the docket, this would typically mean that the government was named in the lawsuit because a tax levy or similar lien was placed against the property being foreclosed upon and the foreclosing bank or homeowner’s association identified them as potentially having a claim on the property....

http://www.avvo.com/legal-answers/what-means---response-filed---from-united-states-o-1233467.html

Since the foreclosure crisis, several studies have linked foreclosures to falling property values for neighboring homes. However, one researcher from the Federal Reserve Bank of Boston recently set out to discover the impact of foreclosed properties on neighbors who aren’t looking to sell their homes. The study observes the residual effects of foreclosures on neighbors’ quality of life. 

http://www.dsnews.com/articles/foreclosed-properties-damage-quality-of-l...

Summary
At the end of 2012, housing prices were 30 percent below their peak in 2006, and about one-fifth of borrowers with residential mortgages were “underwater,” owing more than the value of their homes. Default rates are particularly high among such borrowers. One of the primary ways that the federal government has assisted underwater borrowers is through the Home Affordable Modification Program (HAMP).  That program, administered by the Department of the Treasury, has facilitated lower payments on some mortgages by providing incentives for mortgage holders and servicers to help borrowers avoid foreclosure.

In 2010, the Treasury Department expanded the program to include the possibility of principal forgiveness, a reduction in the amount the borrower owes. Before then, the program had been limited to other ways of reducing payments.

http://www.cbo.gov/sites/default/files/cbofiles/attachments/44115_Princi...

Q:   My bank offered a modification that I completed successfully 2 times, making each and every payment on time every time. They denied my request for a 3rd modification and would not make either the first or the second permanent. After they told me not to send in any "partial" payment they told me to get out of the house and go live in a hotel if I had to because the sheriff could show up any day and put me and my child and all of our belongings on the street , so I left my home. Would this be considered unlawful eviction?

A:    Please see an attorney immediately! If what you are saying is true, there are multiple violations of the law.  

http://www.avvo.com/legal-answers/the-bank-told-me-to-leave-my-home-and-i-did---was--1237320.html

A program that helps homeowners in foreclosure is expanding.

Q:    My husband received notification from his father that someone tried to summon him and I for foreclosure. His parents live in Will County My husband and I have never held a residence at his parents house. Someone also tried to serve my husband and I at my parents house in McLean County....

A:    You need to get a copy of the complaint and see why they included you as a defendant. If you lived at the property at some point, they may be under the mistaken impression that you are still an occupant, and they might only be seeking possession from you....

http://www.avvo.com/legal-answers/can-homeowners-be-summoned-for-foreclosure-at-othe-1191660.html

It was a common practice during the boom times: A single home would be refinanced time and again, perhaps spurred by a broker hungry for fees or a borrower looking to use his or her home for cash.

Now, homeowners in that situation who've managed to get mortgage help from their banks are often finding they must pay federal income taxes on the mortgage aid.

Legislation originally passed in 2007 and renewed in January aims to protect people from facing such a liability after working out a loan modification or losing a home in a short sale. And in many cases it does.

http://www.charlotteobserver.com/2013/04/20/3992490/some-mortgage-aid-re...

Freddie Mac announced it is making its new Streamlined Modification program immediately available to all eligible borrowers nationwide in order to expedite financial relief for potentially thousands of distressed families. Freddie Mac's Streamlined Modification program had originally been scheduled to start on July 1, 2013.

"Today, Freddie Mac is giving a green light to its mortgage servicers to speed up financial relief for potentially thousands of families with delinquent mortgages across the nation. Now mortgage servicers can send eligible borrowers their Streamlined Modification trial period terms as soon as they are ready and borrowers can modify their loans by making the three trial period payments on time.

http://freddiemac.mwnewsroom.com/press-releases/freddie-mac-announces-im...

There’s some good news for military servicemembers on the horizon, after Capitol Hill lawmakers agreed on new legislation that would extend foreclosure protection to enlisted personnel who bought their homes after they went on active duty. Known as the Family Home Protection Act (H.R. 1842), the bill takes over from where the old Servicemembers Civil Relief Act left off.

HousingWire reports that, as things stand now, the Servicemembers Civil Relief Act allows members of the military to obtain protection against foreclosure, so long as their homes were purchased prior to beginning active duty. Presuming the new bill goes through, these protections would be extended to all servicemembers, no matter when they bought their properties.

http://realtybiznews.com/new-bill-proposes-extended-foreclosure-relief-f...

Foreclosures can do a number on your credit report, even for years after they happened. With the Great Recession causing an upheaval in the housing market and many homeowners behind on payments, the aftermath of foreclosures is still a reality for many Americans today. One reader wrote to Credt.com asking for help with a foreclosure on her credit report:

http://realestate.aol.com/blog/2013/04/12/foreclosure-credit-report/

Q:    My last house payment was made Oct. 2012. My final divorce date will be 5/30/2013. I have sent paperwork for loan modification to the bank,which they say they never got,just sent more copies, to their lawyers and Save The Dream. I am told it takes time to process. Got notice 6/18/2013 motion for default judgement . I have no idea what to do....

A:    You are broke. So stay in your home and start saving money. You are going to need it. It may still take the bank 6 ms. or more to move you out. By then you may have saved enough money to hire a truck, pay movers and put down a deposit on a new place, etc....   

http://www.avvo.com/legal-answers/how-do-i-proceed-on-foreclosure--do-i-have-to-have-1237611.html