Evcitions

January 5, 2022 By Marc Dann

DannLaw founder Marc Dann As the new year begins nearly all the mortgage support programs implemented in response to the Covid 19 pandemic are coming to an end. That means millions of homeowners who have taken advantage of mortgage forbearance must begin making their house payments again. Many are finding it difficult to secure permanent loan modifications or repayment plans, some are about to lose their homes because the foreclosure moratoriums imposed by the Consumer Finance Protection Bureau (CFPB) have been lifted, and others are unable to make mortgage payments because advance Child Tax Credit payments ended abruptly just as a new wave of COVID-19 infections began sweeping across the nation.

The mortgage and foreclosure experts at DannLaw are already helping hundreds of homeowners deal with the challenges we described above. If you or someone you know is leaving forbearance, attempting to negotiate a loan modification with a lender, facing foreclosure, or having difficulty making mortgage payments please contact us at once to arrange a no-cost, no-obligation consultation.

It is important to contact experienced attorneys like the members of the DannLaw legal team because loan mods and foreclosure proceedings are extremely complicated areas of the law. Last week Whitney Horton, Brian Flick, Dan Solar and I shared our expertise and strategies with more than 200 lawyers from across the U.S. As we prepared our presentation, we identified numerous problems borrowers are confronting as they deal with lenders and servicers:

Mortgage loan servicers often provide inaccurate and/or incomplete information about the loss mitigation options available to borrowers leaving forbearance or seeking loan modifications.
The CFPB has developed and implemented specific rules and procedures designed to protect homeowners with federally-backed loans, i.e. those issued by the FHA, VA, USDA or owned by Freddie Mac or Fannie Mae, who are exiting forbearance. Unfortunately, some servicers are ignoring the rules and pushing borrowers to accept options that offer less favorable terms or are easier for the lender to implement. This deplorable practice puts borrowers at risk of entering into a repayment plan that isn’t right for them.
Servicers may seek exceptions to the above-mentioned rules in certain circumstances.
Servicers are misrepresenting the rights of borrowers whose FHA, VA, USDA, Fannie Mae or Freddie Mac loans have been sold to new, private investors.
The incompetence of mortgage company staff combined with the mail delivery problems that are plaguing the U.S. Postal Service have caused some borrowers to miss first payment deadlines established under reinstatement or loan modification agreements through no fault of their own.
Some mortgage servicers are adding unjustified/unwarranted fees and charges to mortgage loan balances.
People attempting to contact servicers by phone are placed on hold for hours. When they do manage to speak to a staff member, they often receive inconsistent or incorrect information.
Mortgage companies are not completing their work within the 30-day time limit established under the CFPB rules.
Mortgage companies have initiated foreclosures against borrowers in violation of Federal Dual Tracking prohibitions.

While the CFPB offers extensive online resources, borrowers who attempt to deal with servicers on their own are at a serious disadvantage. Accepting the wrong loan modification or repayment plan could put your home and your family’s financial future at risk. Fortunately, you don’t have to go it alone: the experienced attorneys at DannLaw are here to help.

Whether you are ready to exit forbearance or are now facing foreclosure, we are just a phone call or email away. To arrange a free consultation call 216-373-0539 or complete and submit our contact form.

Stay well, stay safe, and Happy New Year to you and yours.

August 7, 2021 By Marc Dann

DannLaw founder Marc Dann It seems like just weeks ago we saw bright light at the end of the COVID-19 tunnel. Turns out that thanks to people who refuse to be vaccinated and the resultant spread of the highly contagious Delta variant of the Coronavirus that light may once again be an oncoming train that puts both lives and the nation’s economic recovery at risk. To eliminate that risk, we encourage everyone who has not already been vaccinated to roll up their sleeves and get their shot ASAP.

Unfortunately, the economic slowdown, more than 400,000 people a week are now filing new jobless claims, combined with Ohio Mike DeWine and other governors’ decision to rescind federally funded unemployment benefits leave millions of people at risk for losing their homes via eviction or foreclosure.

With that in mind, this update includes vital information about evictions, forbearance, and foreclosure…

First, a few updates on what we’ve been up to:

DannLaw Leads the Fight to Restore $1 Billion in Federal Benefits that Governor Dewine turned down for Unemployed Ohioans

You may have read about our effort to have the supplemental unemployment benefits restored to over 330,000 Ohioans. We argued in court that Governor Dewine lacked the legal authority to refuse benefits made available to unemployed Ohioans by the Federal Government. While we lost the first round in Franklin County Court we are urging that the 10^th District Court of Appeals to reverse the trial Judge’s decision. We are optimistic that our legal arguments on behalf of over 330,000 Ohioans will prevail. This is important not only to unemployed people but also to all of us. Those benefits will (and would have) pumped over $100 Million a week into Ohio’s economy. That money would be spent to support small businesses and employed workers throughout the state.

Ryder v. Wells Fargo Class Action Settles for $12 million: DannLaw Leads the Way

DannLaw and its co-counsel recently helped their clients resolve a class-action lawsuit against Wells Fargo related to glitches in the bank’s loan modification program: Ryder v. Wells Fargo Bank N.A., No. 1:19-cv-00638-TSB (S.D. Ohio). Through the settlement, roughly 1,830 class members will receive over $ 9 million in direct cash payments. No claim forms are required–checks will be issued directly to the class members. The rest of the settlement amount will be used to pay settlement administration fees and expenses, attorneys’ fees and expenses, and class representatives’ incentive awards. A copy of the settlement agreement may be found here and Plaintiffs’ Unopposed Motion for Preliminary Approval, filed on July 2, 2021, may be viewed here.

Foreclosure Moratorium Ends

The federal government’s foreclosure moratorium ended on July 31, 2021. Under new rules issued by the Consumer Financial Protection Bureau, foreclosure actions may proceed if the borrower:

Has abandoned the property.
Was more than 120 days behind on their mortgage before March 1, 2020.
Is more than 120 days behind on their mortgage payments and has not responded to specific required outreach from the mortgage servicer for 90 days
Has been evaluated for all options other than foreclosure and it is determined that foreclosure is unavoidable.

While foreclosure proceedings may begin, foreclosure is not necessarily a done deal. DannLaw’s experienced foreclosure defense attorneys have helped hundreds of families save their homes and their financial futures. We know how to use the law to protect borrowers and to hold lenders who violate the rules accountable.

If you were in foreclosure when the moratorium went into effect last year or believe your servicer or lender is about to begin proceedings to take your home, do not delay, contact DannLaw today to arrange a no-cost, no-obligation foreclosure defense consultation.

If you even suspect that a foreclosure will be initiated or reinstated Do not delay, contact us TODAY! Click here to schedule an in-person, video conference, or telephone appointment or call us at 877-475-8100.

In Forbearance? Now is the time to begin planning your exit strategy…

There is also good news for homeowners in forbearance. The CFPB recently issued new rules designed to protect homeowners as mortgage forbearance programs and the moratorium on foreclosures end. The CFPB said the regulations, which take effect August 31, 2021, will give borrowers who stopped making their mortgage payments time to explore their options and require servicers to “redouble their efforts to work to prevent avoidable foreclosures.”

Among other things, the new rules will:

Give borrowers a meaningful opportunity to pursue loss mitigation options. To ensure that borrowers can pursue foreclosure avoidance options, servicers must meet temporary special procedural safeguards before initiating foreclosures through the end of the year.
Allow mortgage servicers to help borrowers faster.Servicers can now offer streamlined loan modifications to borrowers without making borrowers submit all the paperwork for every possible option. These streamlined loan modifications cannot increase borrowers’ payments and have other protections built into them.
Tell borrowers their options.Servicers will be required to increase their outreach to borrowers before initiating foreclosure and tell borrowers key information about their repayment or other options when they communicate with borrowers who are exiting forbearance or struggling to make mortgage payments.

Along with issuing the new rules, the federal government is also:

Extending the application deadline for homeowners who have not previously requested forbearance from July 1, 2021 to September 30, 2021. Six months of forbearance is available for new filers.
Providing homeowners who entered forbearance between July 1, 2020, and September 30, 2020, one additional three-month extension that will allow them to recover financially before resuming mortgage payments.

Now is the time to begin planning your forbearance exit strategy.

Remember: forbearance is not forgiveness. At some point, borrowers will be responsible for missed payments, taxes, and other fees. The phase-out of the forbearance program and end of the foreclosure moratorium means now is the time for borrowers to plan and execute an exit strategy.

Fortunately, the CFPB’s new rules provide a clear roadmap to the future for many homeowners. Let’s take a look at the options available based on the type of loan you have. As always, the experienced legal team at DannLaw is available to help assess your situation and select the path that is right for you and your family. To arrange a no-cost, no-obligation consultation please complete and submit our contact form. We are eager to help you.

Generally speaking, borrowers whose loans are backed by the federal government have four ways to repay balances that accumulated during forbearance:

Repayment Plan

This option might be right for you if…
You can afford to pay more than your regular mortgage payment for a few months.

How it works
A portion of the amount you owe will be added to the amount you pay each month.

Deferral or Partial Claim

This option might be right for you if…
You can resume your regular payments but can’t afford to increase your payments.

How it works
These options will either move your missed payments to the end of your loan or put them into a subordinate lien repayable only when you refinance, sell, or terminate your mortgage.

Loan Modification

This option might be right for you if…
You can no longer afford to make your regular mortgage payment.

How it works
Your payment can be reduced to an affordable amount and your missed payments will be added to the amount you owe. Your monthly payments could also be lower, but it could take longer to pay off your loan.

Lump-sum Reinstatement

This option might be right for you if…
You want to pay back all of your missed payments at once.

How it works
For most loans, servicers cannot require you to pay a lump sum. So, if you only hear about a lump-sum repayment, ask about other options.

Now let’s look at the options available by the type of loan:

Fannie Mae/Freddie Mac.

Fannie Mae and Freddie Mac do not require a lump sum payment at the end of forbearance and offer repayment plans, deferrals and partial claims, and loan modifications. Your servicer should reach out to you about 30 days before your forbearance plan ends to determine which program is best for you.

HUD/FHA

HUD/FHA does not require lump sum repayment at the end of the forbearance. Servicers will determine if the borrower is eligible for FHA’s COVID-19 Recovery Standalone Partial Claim home retention option no later than at the end of the forbearance period. This program is for homeowners able to resume making their monthly mortgage payments and places arrearages into a subordinate lien that is repaid only when the home is refinanced, sold, or the mortgage is terminated. This lien does not accrue interest.

Borrowers who cannot resume making existing monthly mortgage payments may be eligible for the COVID-19 Recovery Modification which extends the term of the mortgage to 360 months at a fixed rate and targets reducing the monthly principal and interest portion of monthly mortgage payments.

USDA Rural Housing Service

USDA does not require a lump sum payment at the end of the forbearance. Borrowers able to resume making regular payments should be offered an affordable repayment plan or term extension that defers arrearages to the end of the loan. Servicers should determine if borrowers unable to begin making regular payments qualify for other loss mitigation options.

VA Loans

Servicers of VA loans cannot require borrowers to make a lump sum payment at the end of forbearance. VA currently offers repayment plans and loan modifications and is now evaluating other options that may be made available in the future.

An important note for borrowers with private loans.

Homeowners whose mortgages are held by private lenders are especially at risk at the end of forbearance. If you are in forbearance, please stay in regular contact with your servicer because they have the ability to change the terms of your plan at any time. They can also require you to make a lump sum payment when forbearance ends. In addition, it is highly likely that any repayment options they offer will be designed to maximize their profit at your expense.

DannLaw’s experienced legal team knows how to deal with and hold private lenders accountable. If you have a private mortgage, don’t hesitate to contact us to arrange a free consultation so we can assess your situation and help ensure that your home and your finances don’t become victims of the pandemic.

For comprehensive information about forbearance, repayment options, and other COVID-19-related mortgage issues please visit the CFPB’s Help for Homeowners webpage.

For Renters

The good news: on Tuesday, August 3, the Centers for Disease Control and Prevention (CDC) extended the eviction moratorium that had expired on July 31 until October 3, 2021. The eviction ban is in effect for areas of the nation experiencing “substantial and high levels of community transmission” of the coronavirus. That means 90% of the nearly 11 million people behind in their rent are protected.

According to the Biden administration, the extension will give renters and landlords time to access the more than $46 billion in aid that has been approved by Congress. To date only $3 billion has been disbursed. That means lots of dollars are available to pay for rent, late fees, utilities, and moving costs. You can learn more about the assistance programs here.

If you are behind in your rent payments, we strongly urge you to take the following steps:

Determine if you are eligible for assistance. To be eligible you must have an agreement to pay rent for your home or mobile home lot. You don’t need to have a signed lease, and your home could be an apartment, house, mobile home, or other place. In addition, these factors must apply to at least one member of your household:

They did or should qualify for unemployment benefits;
They lost income
They owe large expenses or had other financial hardships
They are experiencing housing instability, which means they are at risk of becoming homeless or would have trouble finding a stable place to live.

Eligibility is also determined by household income based on where you live. For detailed information about eligibility click here then select your state, territory, or tribe from the pulldown menu.

If you are eligible, apply TODAY! Do not wait, take advantage of the help that is available as soon as possible by clicking here then select your state, territory, or tribe from the pulldown menu.
Communicate with your landlord. If you are behind in your rent, please communicate with your landlord. If you have applied for aid tell them. If you are not eligible, keep them advised of your situation and explore the possibility of working out a payment plan that will enable you to stay in your home when the moratorium ends.
Do not ignore letters or summonses issued by a court. When and if you receive an eviction notice or are summoned to court, you must respond. Ignoring letters or failing to appear practically guarantees that you will be evicted.

Thanks for taking the time to read this important update, and as always feel free to contact us should you have questions or need our help. https://calendly.com/mdann

December 30, 2020 By Marc Dann

Hello, happy holidays, and welcome to DannLaw COVID-19 update 12. In this edition, I’ll unwrap the details of the long-overdue stimulus package that was just passed by Congress and signed by the President.

While the 5,600-page bill doesn’t contain anything that would set 12 lords to leaping or qualify as tidings of great joy, it does provide some much-needed financial relief and protection for consumers, workers, and homeowners impacted by the ongoing pandemic.

Direct Payments

Like the CARES Act, the new bill funds direct payments to individuals and families. Single adults with adjusted gross incomes of up to $75,000 in 2019 will receive $600. Couples earning up to $150,000 will receive $1,200. People who earn up to $112,500 and file as “head of household” will also receive $600. The payment will increase by $600 for each child under the age of 17 in a family. People with incomes above these levels will receive a partial payment that declines by $5 for every $100 in income.

If you earned less in 2020 than 2019 and would be eligible for a payment as a result, you will be able to claim the money as a refundable credit when you file your tax return for 2020. Be on the lookout for instructions on how to request the payment when your tax forms arrive—if you don’t ask for it you won’t get it.

According to Treasury Secretary Steve Mnuchin, payments via direct deposit should start showing up in bank accounts within two weeks. If yours is being delivered via the USPS it may take much longer to arrive.

Extended Unemployment Benefits

The bill extends unemployment benefits until at least March 14, 2021, for people receiving state-level benefits as well as those who are receiving checks from the Pandemic Unemployment Assistance (PUA) program which covers the self-employed, gig workers, part-timers, and others who are typically ineligible for regular unemployment payments. Everyone who qualifies for unemployment checks will also get an additional weekly payment of $300 through March 14.

Although it is half the amount provided by the CARES Act, the extra $300 per week will be critically important for families struggling to keep their heads above water as the third wave of the pandemic washes over the U.S. and the wait for vaccines to become widely available continues.

If your benefits have run out, log onto your state’s unemployment website to see if you must do anything to receive the extended aid. According to experts, most states should automatically restart your payments, but I strongly urge you to be proactive and check for yourself.

And I know this will come as a surprise, but you will probably have to wait a few weeks for new payments to arrive.

Mortgage Forbearance

As we’ve noted in previous updates, the CARES Act provides for up to 12 months of payment suspension/forbearance for borrowers with federally-backed loans owned by Fannie Mae, Freddie Mac or insured by the FHA, VA, or the Department of Agriculture. While forbearance is a valuable tool that is helping many families remain in their homes, there are some important things to keep in mind about forbearance:

First, forbearance is not automatic—you must apply. Fannie and Freddie have not set a deadline for accepting applications but if your loan is insured by the FHA, VA, or USDA you must contact your servicer and request an initial Covid-19 forbearance on or before February 28. Click here to learn more about the Fannie/Freddie forbearance process and here for info if your mortgage is backed by the FHA, VA, or the U.S. Department of Agriculture.

Second, and I know I’ve said this numerous times, FORBEARANCE IS NOT FORGIVENESS. At some point, you will be required to make the principal, interest, and escrow payments that have been deferred. Whether you have been in forbearance for some time or intend to apply, you should consult with an experienced mortgage attorney to discuss the financial challenges you will face when forbearance ends. I invite you to contact DannLaw to arrange a free consultation so we can evaluate your situation and begin planning an exit strategy that will enable you to preserve your equity and keep your home.

Third, if you are in forbearance look closely at your monthly statement to make sure it is correct. You should also check your credit report. If your servicer is entering negative information or you notice discrepancies contact us so we can help protect you and determine if you have legal claims that may entitle you to financial compensation.

Fourth, If you haven’t been able to make payments because you lost your job or were laid-off when the COVID-19 crisis cratered the economy but are now back to work you should consider taking your loan out of forbearance before the amount of delayed interest, principal, and escrow you owe becomes unmanageable.

Foreclosure Moratoriums Extended

I’m pleased to report that Fannie Mae, Freddie Mac, the VA, FHA, and USDA have extended the moratoriums on foreclosures enacted earlier this year. Single-family homeowners with loans backed by Fannie, Freddie, or the VA are now protected from foreclosure through at least Jan. 31. The FHA moratorium will remain in effect until February 28.

In addition to the CARES Act moratorium, the governor of New Jersey issued an executive order in March that prohibits foreclosure-related evictions. Under the order, homeowners cannot be removed from a residence even if a final judgment of foreclosure has been entered and a sheriff’s sale of the property has taken place. The order will remain in effect until two months after the governor declares the COVID-19 crisis has ended. In addition, more than 150 private lenders in the state have agreed to offer relief to homeowners impacted by COVID-19. You can learn more about the programs being offered in New Jersey here.

You can find a complete list of states that have imposed foreclosure/eviction moratoriums here. Ohio is conspicuous by its absence–the state has done nothing to assist homeowners.

Unfortunately, the CARES Act forbearance and foreclosure programs do not apply to borrowers whose loans are not “government-backed.” That means unless you live in a state that has enacted protections that apply to private lenders foreclosure remains a very real threat. If you are being threatened with or are already in foreclosure, I urge you to contact DannLaw today to arrange a free consultation. We may be able to take steps to slow down the process and help you save your home.

Eviction Relief

The bill extends the CDC-ordered moratorium on evictions until January 31 and provides $25 billion that will be distributed by state and local governments to people who have fallen behind in their rent.

To receive assistance a renter’s household income for 2020 may not exceed more than 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals must qualify for unemployment benefits or have experienced financial hardship — directly or indirectly — because of the pandemic.

We will provide details on how to apply for this critically important aid as they become available.

Student Loans

The Department of Education has extended the federal student loan relief included in the CARES Act, including zero-interest-rate forbearance and a moratorium on collection activity, until January 31. Here’s an important tip: make your payments if you can because every dollar will be used to reduce the principal on your loan. Follow my advice and you will owe considerably less when the relief programs end.

I do have bad news for people with private student loans: you don’t qualify for the relief programs. That means debt collectors can continue to pursue and torment you during the pandemic.

Renewal of Paycheck Protection Program

Most of the funding in the new stimulus package is devoted to renewing and strengthening the Paycheck Protection Program (PPP) created by the CARES Act. Unlike the original version of the PPP, the revised edition focuses on small businesses, including those with ten or fewer employees, minority-owned firms, and companies located in low-income areas. You can find more info about the restructured program here.

We will provide details of how and where to apply for the new, improved version of the PPP in the coming weeks, but I urge any and every business owner who may be eligible to explore and participate in the program.

Thanks for taking a few minutes to read DannLaw Covid-19 Update 12. As always, we are here to help homeowners and consumers so please feel free to contact us if you need help or advice.

Happy New Year to you and yours and best wishes for a great 2021.

July 27, 2020 By Marc Dann

I was Ohio’s Attorney General when the fraud-driven collapse of the housing market documented in “The Con” began. I’m proud to say that my office was at the forefront of the effort to hold the big banks, predatory lenders, rating agencies, mortgage brokers, stock and bond speculators, brokerage firms, real estate appraisers and others who ignited the near-collapse of the global economy accountable for their actions.

The things I learned as we investigated the mortgage industry were extremely disturbing and distressing. We discovered the home mortgage, which had for decades been the very foundation of the American dream, had become the cornerstone of a multi-trillion dollar racket run by charlatans, scam artists, and cheaters who gleefully used deceit and trickery to prey upon and ruin working and middle-class families.

While their behavior was deplorable, I was even more outraged by the fact that the regulators responsible for protecting the American people had turned a blind eye to the scam that was taking place under their noses and then refused to prosecute any of the criminals once it blew up.

I founded DannLaw in response to the government’s utter failure to protect and seek justice for homeowners and consumers. For more than a decade, DannLaw has filled the void left by regulators and prosecutors who refuse to do their jobs. We have used the law and the civil justice system to help thousands of families save their homes and to force banks, mortgage servicers, and other cheaters to play by the rules and compensate our clients.

I urge you to watch “The Con” which is fascinating and infuriating and to remember that we at DannLaw are here to do the job the regulators won’t.

You can register for the August 5 free Virtual live premiere of The Con here: https://www.thecon.tv/event

I hope you will join me for this important event.

July 20, 2020 By Marc Dann

Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense Attorney A lot has happened since we issued our first COVID-19 on March 13. In our tenth update we’ll take a look at recent developments, discuss impending challenges and opportunities, issue a couple warnings, and dispense some sage advice…

Involuntary Forbearance can threaten your financial future

Let’s start with a cautionary tale about involuntary mortgage forbearance. As we’ve said repeatedly, while it can be a lifesaver for people who are facing financial disaster as a result of the pandemic, forbearance is NOT forgiveness. Homeowners will eventually have to make the interest, principal, and escrow payments they have been delaying.

In addition, forbearance may jeopardize court-approved bankruptcy repayment plans and could make it difficult to buy a new home or refinance an existing loan. That’s why we urged homeowners to think carefully before taking advantage of the forbearance programs made available by the CARES Act and many private lenders.

Unfortunately, a number of banks and servicers didn’t give borrowers a choice. Back in May we warned that a number of banks and mortgage servicers were putting homeowners into forbearance by “mistake.” One of the offenders, and I’m sure this will shock no one, was Wells Fargo. According to a CNBC report, borrowers who called servicers seeking information about forbearance and other relief programs were put into forbearance without their consent by swamped call center workers.

At that time we doubted that Wells, perennial winner of the worst bank in the world award, was really doing this by accident. Turns out we were right. NBC News reported on July 16 that Wells was purposely placing borrowers into forbearance without seeking or receiving their permission.

The story focused on Troy Harlow of Buchanan, Virginia who filed personal bankruptcy in 2017 after a kidney transplant put him on permanent disability. Troy never missed a house payment because his primary goal was to stay in his home.

Wells Fargo is among the banks and servicers who have placed borrowers into forbearance without their consent.

That didn’t matter to Wells. Without his knowledge or permission, on April 29 the bank told the bankruptcy court overseeing Harlow’s payment plan that he had asked to pause his mortgage payments because he had been hurt by COVID-19. Harlow who never even thought about asking to be placed in forbearance continued to forward the full amount owed on his mortgage to Wells.

Harlow’s attorneys soon learned that he wasn’t the only victim. Wells had played the same dirty trick on homeowners in 11 states.

That news set off alarm bells here at DannLaw and led us to launch an investigation to determine if borrowers in Ohio and New Jersey have been scammed by Wells and other lenders. With that in mind, we’re asking homeowners to do two things:

First, contact your lender to determine if they have placed you in forbearance without your permission.

Second, if they have you should contact us right away so we can help rectify the problem and determine if we should file a class-action suit on behalf of every borrower who has been abused by Wells and other lenders. You can reach us by calling 216-373-0539 or filling out and submitting our contact form. Please do this right away because involuntary forbearance can cause real problems for years to come.

Is it time to take your loan out of forbearance?

If you chose to place your loan in forbearance, it’s time to start thinking about an exit strategy. If you haven’t been able to make payments because you lost your job or were laid-off when the COVID-19 crisis cratered the economy but are now back to work you should consider taking your loan out of forbearance before the amount of delayed interest, principal, and escrow you owe becomes unmanageable.

To determine if you should begin making your house payment again, consider the amount you owe on your home relative to its value. If your home is worth more than your mortgage balance it is an asset that you should protect. If it is worth less than you owe it is a liability so your mortgage payment should be viewed as a housing cost and compared to alternatives like paying rent. You should also evaluate other factors including the state of the housing market in your neighborhood, the company that owns your loan, and whether you intend to sell your house sometime in the next few years.

The moratorium on foreclosures is about to end

OH Foreclosure Timeline The moratorium on foreclosures imposed at the beginning of the COVID-19 crisis are coming to an end in some Ohio counties and will lapse for federally backed mortgages at the end of August. That means sheriff’s sales will resume soon.

If you were in foreclosure when the pandemic struck you should contact your attorney right away. If you have not retained a lawyer contact us to arrange a no-cost consultation so we can review your case and discuss ways we may be able to help save your home. To learn more about the options available to you click here to visit the Foreclosure Defense page on Dannlaw.com.

Evictions set to resume

Dann Law Firm - Foreclosure Defense Today it is estimated that more than 8 million Americans, including tens of thousands of Ohioans, are behind on their rent payments and may soon be evicted from their homes. This number could rise substantially when the CARES Act’s Pandemic Unemployment Insurance payments sunset at the end of July.

While distressing, the situation is not hopeless if renters and landlords communicate with each other and work together to overcome the challenges caused by the pandemic. Here are some important steps to take:

1. Renters should communicate in writing with their landlords about their ability to pay, partially pay, or not pay rent. Both renters and landlords are trapped in a dilemma they did not cause, so landlords may be willing to work out payment arrangements. No one benefits from a vacant apartment.
2. Check this list to determine if your landlord has a federally backed mortgage and is therefore prohibited from evicting tenants. If you are a landlord with a federally backed mortgage you may apply for forbearance if your tenants are unable to pay their rent. The eviction moratorium/forbearance program will end in late August unless Congress extends it.
3. If you reach an agreement with your landlord regarding late or partial payments put it in writing. We will soon post a form on our website that will make it easy to create written versions of tenant/landlord agreements.
4. Do not ignore letters or emails you receive from a court and always attend hearings when ordered. While there are legal defenses available to renters and strict procedures that must be followed before a landlord can evict a tenant, ignoring notices and/or failing to appear just about guarantees that your belongings are going to end up on the street.
5. Retain legal counsel. If you cannot afford an attorney call your local legal aid office. As a service to people impacted by COVID-19, we are making DannLaw’s Cleveland and Cincinnati offices available if you need a computer or internet access to participate in a virtual eviction hearing. A member of our legal team will also be on hand to answer general questions about evictions.
6. I and Jeff Watson, General Counsel to a number of real estate investor groups will conduct a virtual seminar for landlords and tenants on Thursday, July 23 at 8:00 P.M. This informative session, titled, “The Eviction Tsunami: Facts and Strategies that Lawyers, Landlords and Tenants Must Know,” will feature a discussion of the growing eviction crisis as well advice and strategies that will help landlords avoid insolvency and tenants escape homelessness. To register for the seminar click here.

Collection firms are up to their old (dirty) tricks

While debt collectors are typically shameless, there has been noticeable slow-down in activity since the onset of the COVID-19 crisis in March. But as states take steps to restart their economies and courts begin to reopen, we’ve received reports that collection lawyers, debt buyers and creditors are ramping up operations. That means debtors must be on the lookout for and pay close attention to any legal notices they receive.

As we noted in our discussion about evictions, the quickest way to lose a case and have a judgement entered against you is to ignore the problem. Trust me, it’s not going to go away simply because you toss a letter in File 13 or don’t show up for court. So please, respond in writing to communications you receive and appear in court when ordered.

In addition, you should contact us to arrange a no-cost consultation. We’ll be happy to discuss your situation and your options. We’ll also determine if debt collectors have violated any of the laws and rules that protect consumers. If they have, you may be entitled to financial compensation. Here’s a brief overview of the rules that govern the collections industry:

The Fair Debt Collections Act (FDCA). Enacted in 1978, the FDCPAis the most well-known federal consumer protection statute. Its primary purpose is to prevent third-party debt collectors from using abusive, unfair, false, or deceptive practices to collect debts. To put it simply, collectors may not lie to or mislead consumers in the course of attempting to collect a debt. Violators of the Act may be liable for statutory damages, actual damages, and attorney’s fees.
Telephone Consumer Protection Act (TCPA) The TCPAlimits the use of automatic telephone dialing systems (ATDS) and artificial or prerecorded voice messages by telemarketers. Since its passage in 1991, the TCPA has been expanded to cover the use of ATDS’s and voice messages by debt collectors and now applies to cell phones if an affected consumer does not have a landline. Under the law collectors may not call a cell phone unless the owner gives consent. That means it’s important for consumers to deny consent verbally during the initial call and then to immediately withdraw consent in writing.

Statutory damages under TCPA range from $500.00 to $1,500.00 per call and may be applied to each and every call made if it is found that a debt collector willfully violated the Act. The ability to “stack” damages serves as an effective deterrent and provides just compensation for consumers who have been victimized by aggressive debt collectors who willfully violate the law.

Check Your Credit Report Weekly

The CARES Act allows you to obtain copies of your credit reports from annualcreditreport.com on a weekly basis. You should take advantage of this opportunity because a number of state unemployment computer systems have sustained massive data breaches. DannLaw has filed class-action lawsuits in Ohio and Arkansas related to those breaches.

In addition, several provisions of the CARES Act are inconsistent with the Fair Credit Reporting Act. Please reach out to us right away if you notice inaccuracies on your credit report because you can sue credit reporting agencies and entities that furnish information to them if they refuse to correct mistakes.

The Con Premieres August 5

Marc Dann - "The Con" Documentary Screenshot Finally, I would like to extend a personal invitation for you to join me on August 5 for the premiere of “The Con,” a four-part series about the 2008 fraud and corruption-fueled collapse of America’s housing market. I’m both proud and humbled to say the series highlights the steps I took as Ohio Attorney General and at DannLaw to hold those responsible for the crisis that led to 10,000,000 families losing their homes accountable for their actions. The series provides a lesson for the risks we face as we hurtle toward a pandemic-related recession.

“The Con,” like all movies being released in the midst of the pandemic, is being released direct to video via independent theatres. To receive your invitation to the free live premiere, click here and then click on “Follow” above the video. If you like The Con on Facebook, you’ll be invited to the free live premiere on August 5. We’ll be posting more news about “The Con” in our blog and on our Facebook page in the weeks to come.