If you don’t understand the difference between an escrow shortage and an escrow deficiency – you are not alone.  Many attorneys even get this confused.
Regulation X defines a deficiency as the “amount of a negative balance in an escrow account.” This happens when a mortgage servicer has advanced funds to cover disbursements (such as property [...]

Recently, a number of my clients have been complaining that their mortgage servicer won’t speak with them after they received their bankruptcy discharge.  What is going on?  You would think the mortgage companies want to get paid – especially considering the number of foreclosures these days.  I am told the servicers are of the opinion that their debt [...]

An over-looked Truth-in-Lending Act rule that goes into effect July 30, 2009 has mortgage companies scrambling.  The new rule requires timely delivery of the good faith estimate on home purchases, refinancings, and home equity loans.  Applications taken after July 29th require lenders to deliver the good faith estimate “GFE” to the borrower within three business [...]

Texas Attorney General Greg Abbott’s office filed for a Temporary Restraining Order against Excel Loss Mitigation Inc., United Servicing LLC, Bell Investments & Developments LLC and their key directors, David Bell and David Espy to stop their foreclosure rescue business.
Further, a Harris County (Houston) district judge froze their assets after the AG’s office charged the [...]

On Tuesday South Carolina’s highest court issued a court order to temporarily stop home foreclosure sales in the state so that homeowners have more time to take advantage of a new federal program to help them refinance their mortgage loans.

In Texas, February foreclosure filings dropped 14.1 percent from February 2008’s number according to RealtyTrac, a foreclosure listing firm.  However, February 09’s numbers increased 7.9 percent from January 09 totals.  And foreclosures for homes above $200,000 have increased in Bexar County (San Antonio).  According to Foreclosure Listing Service Inc. out of Addison, foreclosure postings rose [...]

Texas Attorney General, Greg Abbott announced that Texas’s enforcement action against Foreclosure Assistance Solutions (FAS) has concluded.  The Florida-based company can no longer engage in the foreclosure mitigation business in Texas.  Further, the company has paid more than $390,000 in restitution to 351 Texas homeowners.
FAS is the eighth foreclosure rescue operation shut down by the [...]

Many homeowners are surprised to learn, usually after their home has been flooded, that their homeowners’ insurance policy does not cover damage caused during a flood.  You must look to your flood insurance for coverage (National Flood Insurance Program).  And, according to FEMA (the Federal Emergency Management Agency), 90 percent of all natural disasters in the nation involve [...]

Democratic Senators Richard Durbin (Ill.) and Charles Shumer (N.Y.) have introduced a bill to create a Financial Product Safety Commission that could police mortgage products offered by any lender – including federally chartered banks.
The consumer credit protection agency would ensure mortgages and other consumer financial products are safe and not abusive or predatory for the consumer.
According [...]

With last week’s announcement of a new federal plan to help homeowners avoid foreclosure, Texas Attorney General Greg Abbott has issued a Consumer Alert: Foreclosure Rescue Scams Growing Threat to Consumers.  He advises Texans to be especially alert to foreclosure rescue scams, and should keep in mind that there is no charge to participate in the [...]