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Lawyers Realty Group Second Mortgage Liability

HOMEOWNERS INCREASINGLY ON THE HOOK FOR SECOND LIEN LIABILITY

A Texas company is aggressively pursuing hundreds of Californians to collect second-mortgage debt on homes they’ve already lost to foreclosure. Most homeowners believe their mortgage debt will be wiped out after the bank takes the property through foreclosure. But this company, Heritage Pacific Financial, has aggressively pursued collections and filed lawsuits to collect on the still viable debt.

These vulture funds prey upon unsuspecting people who have already suffered the trauma of losing their home. They often wait years to spring up, taking advantage of the 4-year statute of limitations that California provides. Therefore, these funds can wait a long time for the prior homeowner to recover financially before they commence litigation. They pay very little when they purchase the old debt, and they do not need to act quickly.

Once these claims for debt collection pop up, it costs time and money trying to defend against them. Often, there is little chance of success. The law is clear that certain debts remain viable post- foreclosure. Just when an individual is recovering financially from a foreclosure, they are hit with threats to destroy their credit and seize their bank accounts.

The newest breed of vulture will go after debts that should have been wiped out, but the collectors claim fraud in the applications for the original loan. If income was misstated, they might be able to collect on debt that was otherwise uncollectable through foreclosure or even bankruptcy.

The company’s lawsuits often accuse defendants of misstating their incomes on loan applications. While many borrowers did overstate their incomes on applications, consumer attorneys say Heritage Pacific is targeting people who filled out their forms honestly or whose mortgage brokers pumped up their applications without their knowledge.

Critics of these collection practices say the company’s central tactic is forcing settlements from people who can’t afford a drawn-out legal fight and who don’t know the details of California law. The company has sued people with second-mortgage debts of less than $150,000, despite a state law prohibiting lawsuits alleging fraud on mortgages below that amount. It is extremely important for homeowners to deal with this issue BEFORE the foreclosure is processed. Anti-deficiency laws must be carefully evaluated by an experienced real estate attorney. Contact Lawyers Realty Group today for a comprehensive analysis of all of your options and an examination of the hidden liability traps that are almost always missed by real estate agents and loan mod consultants.

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EXCEPTIONAL SERVICE – UNPRECEDENTED PROTECTION

LAWYERS REALTY GROUP is an attorney owned and operated real estate brokerage that was formed to help level the playing field between struggling homeowners and the banks who are threatening them with foreclosure, eviction, deficiency judgments, and collection actions.

Unlike traditional real estate agents, loan mod companies, bankruptcy attorneys, litigators and others who aggressively market their particular one-size-fits-all solution regardless of a homeowner’s future liability and financial well-being, Lawyers Realty Group provides clients with a customized analysis of their options, free legal counseling and clear direction on how to best resolve their particular mortgage issues – all without charging fees to the homeowner.

 

Derik N. Lewis, Esq., is the founder and president of Lawyers Realty Group. Derik is a California real estate attorney, a licensed Realtor® and a member of the National Association of Consumer Bankruptcy Attorneys. He graduated magna cum laude from Boston University School of Law and has nearly 30 years of real estate experience. For more than two decades as an attorney in private practice, Derik has represented California homeowners with difficult real estate matters. Derik previously served as legal counsel for some of the world’s largest lenders including Bank of America, Wells Fargo and JPMorgan Chase (he knows how they operate and how to work within their systems to help you achieve the best possible outcome). He is also a visiting lecturer at the University of Southern California School of Law speaking on real estate law, brokerage and litigation.

Professional Associations

  • Admitted to all State and Federal Courts in California
  • California Bar Association
  • Orange County Bar Association
  • National Association of Consumer Bankruptcy Attorneys
  • National Association of Realtors
  • California Association of Realtors
  • Orange County Association of Realtors
  • California Regional Multiple Listing Service

No Cost Services

Free legal analysis of all of your options, including how to limit or eliminate tax and deficiency liability.

Complete representation for the option that best suits your situation, whether you need assistance in reviewing a loan modification, filing bankruptcy, seeking a deed-in-lieu of foreclosure, pursuing a planned foreclosure or selling in a short sale.

Free Bankruptcy filing in the BK/Short Sale package.

Free legal review and fraud analysis of all solicitations from the bank, real estate agents, lawyers or others.

Free and complete short sale representation including MLS listing, marketing, negotiation, deficiency waivers and closing. You need an Attorney/Realtor® to provide legal leverage and fully protect your interests.

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