The Consumer Financial Protection Bureau (CFPB) recently approved rules that seek to diminish the amount of wrongful foreclosures in the United States.
The New Rules
The newly introduced rules are an extension of the regulations currently in place that mandate foreclosure protections be provided to struggling borrowers at least once over a loan’s repayment schedule. Under the new rules, protections must be provided on more than one occasion. By doing so, loan servicers will allow borrowers with a history of making payments on time to secure a suitable solution for avoiding foreclosure, such as a loan modification.
The changes will also extend the protection to family members in the event that the homeowner passes away. Additionally, bankruptcy information will now need to be provided to homeowners by the servicer to ensure the borrower is informed well in advance about his options. Furthermore, the new rules mandate more efficient communication on the part of the lender regarding foreclosure alternatives, requiring servicers to send out a notification when loss mitigation applications are complete. Lenders will also be barred from proceeding with foreclosure actions prior to the completion of applications, putting an end to the “dual tracking” performed by many lenders when legal actions coincide with the application review.
What Homeowners Need to Know
With the help of a West Palm Beach foreclosure defense lawyer, homeowners are more likely than ever to be able to keep their home in the midst of a financial crisis. The new rules approved by the CFPB put the power in the hands of homeowners, allowing them to better protect themselves from abusive foreclosure techniques. With the changes implemented, foreclosure alternatives will be a viable option for more borrowers. As a result, homeowners will have the ability to avoid the repercussions of foreclosure, which go far beyond the loss of one’s home — such as a tarnished credit report.
If you’re facing foreclosure, a West Palm Beach foreclosure defense lawyer at Kelley & Fulton is here to see you through it. Call our office today to be advised on your unique situation.