Representing the Homeowner in Foreclosures, Short Sales and Everything in Between

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1 Representing the Homeowner in Foreclosures, Short Sales and Everything in Between Lorray S.C. Brown Michigan Poverty Law Program Ann Arbor Outline Exhibits Exhibit A Michigan Pre-Foreclosure Process: Amended 90-Day Law Exhibit B Federal Programs for Borrowers: HAMP, HARP, etc The Institute of Continuing Legal Education 1-1

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3 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Outline I. Foreclosure By Advertisement A. In Michigan there are two methods to foreclose: 1) Judicial Foreclosure MCL et seq and 2) Foreclosure by Advertisement MCL et seq. A judicial foreclosure is rarely used by the lender. However, under the 90-day pre-foreclosure law, a court can convert a foreclosure by advertisement to a judicial foreclosure if the lender fails to comply with the pre-foreclosure requirements. B. Requirements to Foreclose by Advertisement: Comply with the 90-day pre-foreclosure process To foreclose by advertisement, the mortgage must contain a power of sale clause. MCL A power of sale provision gives the lender the power to sell the property when the borrower defaults. There must be a default under the terms of the mortgage that triggers the power of sale clause. MCL (1)(a). There is no pending court action to recover the debt secured by the mortgage. MCL (1)(b). The mortgage and any assignments have been properly recorded. MCL (1)(c) and MCL (3). The party foreclosing is either the owner of the indebtedness or the servicing agent of the mortgage. MCL (1)(d). C. Notice and Publication Requirements The foreclosure notice must be published for 4 successive weeks at least once a week, in a newspaper published in the county where the property is located. If no newspaper is published in the county, the notice shall be published in a newspaper in an adjacent county. MCL The Institute of Continuing Legal Education 1-3

4 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, A copy of the notice must be posted in a conspicuous place upon any part of the premises within 15 days of the first publication. MCL No requirement to post the notice on the house itself. Cox v Townsend, 90 Mich App 12 (1979). No requirement to mail, personally serve, or otherwise notify the borrower in any other manner. Jennings v Arnold, 258 Mich 599 (1935). The notice of foreclosure must contain the following information: Names of the mortgagor, the original mortgagee, and the foreclosing assignee. The date of the mortgage and the date the mortgage was recorded. The amount claimed to be due on the mortgage on the date of the notice. A description of the premises. Length of the redemption period. MCL Note: Section 3212 does not require notice of the time and place of the sale. However, most notices contain that information. The foreclosing party may adjourn the sale on a weekly basis by posting a notice of adjournment at the auction site. If the adjournment is for more than a week, the foreclosing party must publish a notice in the same newspaper as the original notice, within 10 days from the date the sale was adjourned, and again once per week for each week the sale is adjourned. MCL D. Foreclosure Sale The sale must be public and held between 9:00 a.m. and 4:00 p.m. in the same building as the circuit court for the county where the property is located. The sale is conducted by the sheriff, deputy sheriff or a person appointed to conduct the sale. The property is sold to the highest bidder. MCL The mortgagee may purchase the property at the foreclosure sale. MCL The purchaser will receive a sheriff s deed. The sheriff s deed transfers legal title to the property subject to the borrower s redemption right. The borrower may redeem the property to void the sheriff s deed. MCL and MCL After the sale, any surplus proceeds are paid to any subsequent mortgagee or lien holder pursuant to MCL If there are none, the surplus proceeds are paid to the borrower. If after the sale, there is a deficiency, the mortgagee may bring an action against the borrower to recover the deficiency. The borrower can defend against the The Institute of Continuing Legal Education

5 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between deficiency by showing that the property sold was fairly worth the amount of the debt secured by it at the time and place of the sale or that the amount bid was substantially less than its true value. MCL E. Redemption Period After the sale, the borrower continues to have the right of possession of the property until after the redemption period expires. The redemption period varies from 1 year to 30 days. MCL and MCL For residential property, the redemption period is 6 months from the date of the sheriff s sale, if the amount due on the mortgage is more than 2/3 of the original indebtedness secured by the mortgage. For residential property, the redemption period is 1 year, if the amount due on the mortgage is less than 2/3 of the original indebtedness secured by the mortgage. For residential property, the redemption period is 6 months from the date of the sheriff s sale, if the amount due on the mortgage is more than 2/3 of the original indebtedness secured by the mortgage and the property is more than 3 acres and not used for agricultural purposes. For residential property, the redemption period is 1 year, if more than 3 acres and is being used for agricultural purposes. The redemption period is shortened to 30 days for abandoned properties if the mortgagee complies with the statutory procedures under MCL A borrower can redeem the property by paying the amount that was bid at the sale plus interest at the same rate as the mortgage, taxes and insurance. MCL II. Challenging a Foreclosure in Michigan A. Procedural Defenses A borrower can challenge the foreclosure by showing that the foreclosing party failed to comply with the procedural requirements. Possible procedural defenses: Incorrect amount claimed to be owing. No posting on the premises. Failure to name a wife on the notice when she is a mortgagor is a basis to set aside the foreclosure sale. Oades v Standard Sa & Loan Ass n, 257 Mich 469 (1932) The Institute of Continuing Legal Education 1-5

6 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, Incorrect legal descriptions. The mortgage was not properly recorded. The foreclosing party has no standing to foreclose. Standing to foreclose issues in Michigan: The foreclosing party is not the record holder. Arnold v DMR Financial Services, 448 Mich 671 (1995) ( only the record holder of the mortgage has the power to foreclose under MCL ). The foreclosing party is not the owner of the indebtedness or the servicing agent. Residential Funding v Saurman, 805 N.W.2d 183 (Mich 2011) (reversing the Court of Appeals finding that Mortgage Electronic Registration System (MERS) has an interest in the indebtedness. This interest in the indebtedness i.e., the ownership of legal title to a security lien whose existence is wholly contingent on the satisfaction of the indebtedness authorized MERS to foreclose by advertisement under MCL (1)(d). Procedural defenses may be raised in defense to summary proceedings after the redemption period expires. Manufacturers Hanover Mortgage Corp v Snell, 142 Mich App 548 (1985); Reid v Rylander, 270 Mich 263 (1935). But see: Overton v Mortgage Electronic Registration Sys, unpublished opinion per curiam of the Court of Appeals, issued [May 28, 2009] (Docket No ); 2009 WL (finding that homeowner had no standing to challenge foreclosure sale because homeowner had no interest in the property once the redemption period expired). B. Contesting the Underlying Mortgage or Mortgage Transaction A borrower can try to rescind the mortgage if there are any federal Truth in Lending Act (TILA) violations (15 USC 1601 et seq. The federal Truth in Lending Act (TILA) requires lenders to disclose five material terms of the credit transactions to borrowers. Under TILA, lenders must disclose: 1) the Amount Financed 2) the Finance Charge 3) the Annual Percentage Rate 4) the Total Payments 5) the Payment Schedule. These disclosures can be found on the HUD-1 Settlement Statement. In a non-purchase money mortgage for the borrower s primary residence, TILA gives the borrower a three-day right to cancel that mortgage. It is also required that the lender gives each borrower two copies of the notice of their right of cancel. If the lender fails to give the consumer any of the material disclosures listed above or fails to inform the The Institute of Continuing Legal Education

7 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between borrower of the right to cancel, then the right to cancel can be extended for up to three years. The borrower must rescind prior to the sheriff s sale. The right to rescind does not survive a sheriff s sale. Marschner v RJR Financial Services, 382 F Supp2d 918 (ED Mich 2005). Other defenses against the obligation secured by the mortgage may be defenses to the foreclosure: fraud, misrepresentation, bait and switch, Mortgage Brokers, Lenders, and Servicers Licensing Act (MCL et seq.) MCL : It is a violation of this act for a licensee or registrant to any of the following: (b) Engage in fraud, deceit, or material misrepresentation in connection with any transaction governed by this act. [or] (c) Intentionally or due to gross or wanton negligence, repeatedly fail to provide borrowers material disclosures of the information as required by law. C. Challenging Violations of the Home Affordable Modification Program (HAMP) Private Right of Action Courts have consistently found that HAMP provides no private right of action. See: Hart v. Countrywide Home Loans, Inc., 735 F. Supp. 2d 741 (E.D. Mich. 2010) (the statutes do not create a private right of action under which Plaintiff may seek relief. There is no express or implied right to sue fund recipients... under TARP or HAMP. ) See also Aleem v. Bank of America, 2010 WL (C.D. Cal. Feb. 9, 2010)); Melton v. Suntrust Bank, 780 F.Supp.2d 458, 459 (E.D.Va. 2011); Luster v. Mortgage Electronic Registration Systems, 2012 WL (E.D. Mich., Jan. 17, 2012); Yunanova v. BAC Home Loans Servicing, 2012 WL (E.D. Mich., Feb. 10, 2012). But see: Deutsche Bank National Trust v Hass, No AV (Macomb County Circuit Court)(Sept )(Judge Donald Miller); and Wells Fargo v Jones, No AV (Wayne County Circuit Court)(Sept 20, 2010)(Judge Daphne Means Curtis)(allowing HAMP as a defense to eviction) 2012 The Institute of Continuing Legal Education 1-7

8 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, Third-Party Beneficiary Claims Majority of courts have held that borrowers were not the intended beneficiaries of the Agreement between Treasury and the servicers. See: Acuna v. Chase Home Fin., LLC, 2011 WL , at *4 (E.D.Va. May 17, 2011); Zendejas v. GMAC Wholesale Mtg. Corp., 2010 WL (E.D. Cal. 2010) (concluding third party beneficiaries cannot enforce government contracts absent a clear intent to the contrary and finding that HAMP expresses no such intent); see also Federal Nat. Mortg. Ass n v. LeCrone, 868 F.2d 190, 193 (6th Cir.1989) (no express or implied right of action in favor of the mortgagor exists for violation of HUD mortgage servicing requirements); Duff v Federal National Mortgage, Civ. No. 11-cv (E.D. Mich., Feb. 29, 2012)(Judge Rosen) See also Astra USA, Inc. v. Santa Clara County, U.S., 131 S.Ct. 1342, 1348, 179 L.Ed.2d 457 (2011). But See Marques v Wells Fargo, 2010 WL (S.D. Cal. Aug. 12, 2010)(finding borrowers to be intended beneficiaries because the purpose of the agreement was to provide loan modification services to eligible borrowers). Breach of Contract Trial Period Plan (TPP) are contracts See: Bosque v Wells Fargo Bank, 762 F.Supp.2d 342 (D. Mass. Jan. 26, 2011)(TPP looks like a contract, as it characterizes itself as an agreement, contains signature lines for the lender and the borrower and contains distinctly contractual phrases such as under seal and time is of the essence. ) See also: Faulkner v Onewest Bank, 2010 WL (N.D.W.Va. June 16, 2010); Hanson v Wells Fargo Home Mortgage, 2010 WL (E.D. Ark. Aug. 18, 2010); Wells Fargo v Meyers, 913 N.Y.S.2d 500, 504 (Nov. 10, 2010); Durmic v J.P. Morgan Chase Bank, 2010 WL (D. Mass. Nov. 24, 2010)(denying lender s motion to dismiss homeowners breach of contract claim); Jackson v Ocwen Loan Servicing, LLC, 2011 U.S. Dist. LEXIS (E.D. Cal. Feb. 9, 2011). But see: Wigod v Wells Fargo Bank, 2011 WL (N.D. Ill. Jan. 25, 2011); Brown v Bank of New York Mellon, 2011 WL (W.D. Mich. Jan. 21, 2011); Vida v Onewest Bank, 2010 WL (D. Oregon Dec ); Grill v BAC Home Loans Servicing, 2011 WL (E.D. Cal. Jan. 14, 2011); Prasad v BAC Home Loans Servicing, 2010 WL (E.D. Cal. Dec. 7, 2010) The Institute of Continuing Legal Education

9 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Statute of Frauds Issue: MCL provides, in relevant part, that: An action shall not be brought against a financial institution to enforce any of the following promises or commitments of the financial institution unless the promise or commitment is in writing and signed with an authorized signature by the financial institution:.... (b) A promise or commitment to renew, extend, modify, or permit a delay in repayment or performance of a loan, extension of credit, or other financial accommodation. (Emphasis added). See Crown Technology Park v. D&N Bank, FSB, 619 N.W.2d 66, 71 (Mich. App. 2000) (barring a promissory estoppel claim based on a Banks oral promise to waive the prepayment penalty) The Institute of Continuing Legal Education 1-9

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11 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Exhibit A Michigan Pre-Foreclosure Process: Amended 90-Day Law Michigan Pre-Foreclosure Process: Amended 90-day Law Lorray S.C. Brown Amended Pre-Foreclosure Law 2009 Law Began July 5, 2009 Applies to the Foreclosure by Advertisement Intent to bring all parties to the table Requires a mandatory 90-day pre- foreclosure process to avoid foreclosure. Sunsets July 4, 2011 Amendments Still applies to proceedings in which the first notice for foreclosure by advertisement is published after July 5, 2009 Amendments apply to foreclosure proceedings in which the first notice for the 90-day pre-foreclosure process is mailed on or after February 1, 2012 Sunsets December 31, Law Amendments (No Changes) Applies to: principal residence exempt from taxes (homestead property tax exemption) Applies to: principal residence exempt from taxes (homestead property tax exemption) 2012 The Institute of Continuing Legal Education 1-11

12 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, Applicability: It does not apply if the borrower and the person designated have previously agreed to modify the mortgage loan under section 3205b, this section [3205a] and sections 3205b and 3205c do not apply unless the borrower has complied with the terms of the mortgage loan, as modified, for 1 year after the date of the modification. Section 3205a(6) Amendments: The 90-day pre-foreclosure law does not apply to a mortgage of a property used for agricultural purposes if the mortgage is subject to borrower s rights under federal law, if the pre-foreclosure period under federal law is longer than the 90 days under Michigan law. Requirements for Mortgage Holder or Servicer -- Cannot begin to foreclose by advertisement before participating in a 90- day pre-foreclosure workout process -- Send written notice to borrower The Institute of Continuing Legal Education

13 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Contents of Written Notice (section 3205a(1): 2009 Law I. Why the mortgage loan is in default, the amount due and owing under the mortgage loan. I. Same Amendments II. The names, addresses, and telephone numbers of the mortgage holder, servicer or agent designated by mortgage holder or servicer. II. Same Contents of Written Notice (cont d): 2009 Law Amendments III. The person designated as the person to contact and the person who has the authority to make agreements to modify the loan or other loss mitigation alternatives. III. The person designated as the person to contact and the person who has the authority to make agreements to modify the loan or other loss mitigation alternatives. IV. A list of housing counselors approved by the United States Department of Housing and Urban Development (HUD) or the Michigan State Housing Development Authority (MSHDA). IV. The person designated shall be the individual, department or unit of the mortgage holder or mortgage servicer or an agent of the mortgage holder or servicer. V. Notice that within 14 days after the written notice is mailed, the borrower may request a meeting with the designated agent to attempt to work out a loan modification to avoid foreclosure and the borrower may also request a housing counselor to attend the meeting. V. The notice shall give the name and address, a dedicated telephone number and a dedicated VI. Within 30 days after the notice is mailed, the borrower may request a meeting, either directly or through a housing counselor 2009 Law Amendments VI. Notice that if the borrower requests the meeting, foreclosure proceedings will not begin until 90 days after the date the notice is mailed to the borrower. VII. Same VII. Notice that if the borrower and the designated agent agree to modify the loan, and the borrower complies with the terms of the loan, the mortgage will not be foreclosed. VIII. Same VIII. Notice that if the borrower and the IX. designated agent do not agree to modify the loan but it is determined that the borrower is eligible for a loan modification based on the criteria set out in the statute and foreclosure by advertisement is not allowed under section 3205c(7), the mortgage holder or servicer cannot foreclose by advertisement and will have to foreclose by going to court. Same 2012 The Institute of Continuing Legal Education 1-13

14 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, IX Law Amendments Notice that the borrower has a right to contact an attorney. The X. Same telephone numbers of the state bar of Michigan s lawyer referral service and a local legal office must be listed. X. A list of housing counselors approved by the United States Department of Housing and Urban Development (HUD) or the Michigan State Housing Development Authority (MSHDA). XI. Same XI. Borrower may request a housing counselor to attend the meeting XII. Same 2009 Law Amendments XIII. XIV. The notice shall include the length of the redemption period. The notice shall state that the borrower will be held responsible for damages to the property during the redemption period Law Amendments Regular first class mail Certified Mail Must Publish in the Newspaper Regular first class mail Certified Mail May Publish in the Newspaper The Institute of Continuing Legal Education

15 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between 2009 Law Timeline -- Within 14 days after the written notice is mailed borrower must: contact housing counselor or contact designated agent -- Within 10 days after being contacted by borrower, housing counselor must contact designated agent -- After being informed of borrower s request to meet, the designated agent may request the borrower to provide any documents that are necessary to decide whether the borrower is eligible for a loan modification 30 days: Timeline -- The borrower, either directly or through a housing counselor, must contact the designated agent and ask for a meeting within 30 days after the notice is mailed -- The borrower must contact either the designated agent or a housing counselor within 30 days after the notice is mailed. -- Within 30 days after the notice is mailed, the housing counselor must inform the designated agent in writing that the borrower wants to negotiate a loan modification. -- If the designated agent doesn t hear from the borrower within 30 days, the borrower has opted out of the 90-day process, and the lender will proceed to foreclose by advertisement. What does this mean? 60 Days: -- The designated agent must request the documents within 10 days after being contacted by the borrower or the housing counselor. -- Within 60 days after the notice is mailed, the borrower must provide the designated agent with any requested documents. -- If the borrower does not provide the requested documents within 60 days after the notice was mailed, the lender can proceed to foreclose by advertisement The Institute of Continuing Legal Education 1-15

16 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, 90 Days: -- After being informed that a borrower wishes to meet, the designated agent must schedule a meeting with the borrower. -- Before 90 days after the notice is mailed or 10 days after the meeting between the borrower and the designated agent, whichever is later, the designated agent must provide the borrower with a copy of the loan modification calculations, and, at the borrower s request, a copy of the lender s modification guidelines, program or process. The meeting is with the designated agent, borrower and housing counselor (at borrower s request) to work out a modification of the mortgage loan. The meeting and any later meetings shall be held at a time and place that is convenient to all parties, or the county where the property is situated. (Section 3205b(3)) The Institute of Continuing Legal Education

17 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Role of the Designated Agent 2009 Law --A designated agent must have the authority to make agreements to modify the loan or other loss mitigation alternatives. Amendments -- Designated agent an individual who is an employee or agent of the mortgage holder, the servicer, or another entity that is an agent of the mortgage holder or servicer; or a specific department or unit of the mortgage holder or servicer or an entity who is an agent of the mortgage holder or servicer Designated Agent (cont d) - Amendments -- The designated agent is also authorized to facilitate negotiations and attend meetings with the borrower. -- Nowhere does the amendment eliminate the requirement that the designated agent should have the authority to make agreements. So how will this be interpreted? Additional Changes 1) Borrower will be liable to the purchaser or mortgagee at the sale for damages to the property beyond wear and near, if the damages were caused by or at the direction of the borrower during the redemption period. 2) A person who is not on the MSHDA list shall not perform the duties of housing counselor under the law - violation of this provision is a misdemeanor punishable by imprisonment or fine - attorneys, licensed to practice in Michigan and who provides mortgage assistance relief services as part of their practice, are exempt from this provision 3) There is a reduction of the redemption period from 1 to 6 months for nonagricultural properties that are more than 3 acres The Institute of Continuing Legal Education 1-17

18 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, What happens if the lender does not comply with the pre-foreclosure process? What happens if the borrower and the lender cannot agree on a loss mitigation alternative (such as a loan modification)? Lender must foreclose by going to court Loan Modification Program Targets a debt-to-income ratio of 38% Debt includes: mortgage principal and interest property taxes insurance homeowner s fees To reach the 38% target, the loan modification program may include 1 or more of the following features: -- Reduction of interest rate (subject to a floor of 3%), for a fixed term of at least 5 years. -- Extension of the loan term up to 40 years from the date of the loan modification. -- Deferral of some portion of the unpaid principal balance up to 20%. -- Reduction or elimination of late fees The Institute of Continuing Legal Education

19 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Other Loan Modification Programs Used: If the mortgage loan is sold to a governmental entity (Ginnie Mae) or government-sponsored enterprise (Fannie Mae, Freddie Mac), then use the modification guidelines used by those entities. Requirements to Foreclose by Advertisement Comply with the 90-day pre-foreclosure process Mortgage must contain a power of sale A default has occurred Mortgage and assignments have been properly recorded The foreclosing party is either the owner of the indebtedness or the servicing agent. QUESTIONS? 2012 The Institute of Continuing Legal Education 1-19

20 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, Resources Michigan Foreclosure Task Force Michigan State Housing Development Authority (MSHDA) finding a housing counselor in your area The Institute of Continuing Legal Education

21 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Exhibit B Federal Programs for Borrowers: HAMP, HARP, etc. Federal Programs for Borrowers: HAMP, HARP, etc Lorray S.C. Brown HAMP Overview I. HAMP is the Home Affordable Modification Program II. One program under the United States Department of Treasury s Making Home Affordable program III. Developed in connection with the Emergency Economic Stabilitation Act of 2008, PL , 109, 110 (October 3, 2008) HAMP Overview A. Non-GSE HAMP: HAMP Handbook available at hmpadmin.com B. Fannie Mae HAMP: Announcements and Chapter VII of the Servicing Guide (efanniemae.com) C. Freddie Mac HAMP: Bulletins and Chapter C65 of the Seller/Servicer Guide (freddiemac.com) 2012 The Institute of Continuing Legal Education 1-21

22 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, What is a HAMP mod I. Seeks to modify payment to 31% of the homeowner s gross monthly income. A. 31% of payment includes escrow B. To do that, the servicer finds that payment and then goes through the water fall to adjust the loan terms down to that payment What is a HAMP mod I. Water fall: A. Capitalize arrearage B. Reduce interest rate (2% floor) (after five years can step up) C. Amortization term extended to 40 years D. Principal forbearance (creates an interest free balloon payment) II. Net Present Value test: checkmynpv.com What is a HAMP mod I. Three month trial period plan (TPP) then supposed to convert to permanent modification A. Trial Period Plan used to require a signed document, now you accept but sending in the payments with coupons B. Permanent modifications require signed documents The Institute of Continuing Legal Education

23 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between HAMP Applicability: A. Applies to loans originated on or before January 1, 2009 B. HAMP slated to end December 31, 2012 but extended through December 31, 2013 C. See Handbook docs/hamp_servicer/mhahandbook_34.pdf Home Affordable Unemployment Program (UP) 1. Effective July 1, Forbearance period reduces mortgage payment or suspends the payment 3. 3-month forbearance period 4. Sunsets December 31, 2013 Home Affordable Unemployment Program (UP) Eligibility: 1. Unemployed and eligible for unemployment benefits 2. Primary residence 3. No previous HAMP modification 2012 The Institute of Continuing Legal Education 1-23

24 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, Home Affordable Foreclosure Alternatives (HAFA) 1. For borrowers who do not qualify for HAMP 2. Borrowers are offered short sales, deed in lieu 3. Must first consider HAMP and non- HAMP Home Affordable Refinance Program (HARP) I. Applies to borrowers who are current but wish to refinance II. Applies to borrowers who cannot refinance because house underwater III. Only Fannie and Freddie loans IV. Sunsets December 31, 2013 Independent Foreclosure Review The Office of Comptroller of the Currency (OCC) and the Federal Reserve Board Form must be completed and returned by September 30, 2012 Need to identify financial harm due to errors, misrepresentations or other deficiencies in the foreclosure Process Foreclosure process during January 1, 2009 to December 31, 2010 More info: The Institute of Continuing Legal Education

25 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between Basic Eligibility I. Serviced by one of these servicers. II. Home was primary residence. III. Loan was in any stage of the foreclosure process between January 1, 2009 and December 31, (if any stage occurred in that period, doesn t matter if foreclosure was completed, short sale, or deed in lieu.) List of Covered Mortgage Servicers America s Servicing Co. Aurora Loan Services BAC Home Loans Servicing Bank of America Beneficial Chase Citibank CitiFinancial CitiMortgage Countrywide EMC EverBank/EverHome Mortgage Company Financial Freedom GMAC Mortgage HFC HSBC IndyMac Mortgage Services 2012 The Institute of Continuing Legal Education 1-25

26 Representing the Homeowner in Foreclosures, Short Sales & Everything in Between, MetLife Bank National City Mortgage PNC Mortgage Sovereign Bank SunTrust Mortgage U.S. Bank Wachovia Mortgage Washington Mutual (WaMu) Wells Fargo Bank, N.A. Wilshire Credit Corporation QUESTIONS? Resources Michigan Foreclosure Task Force Michigan State Housing Development Authority (MSHDA) finding a housing counselor in your area The Institute of Continuing Legal Education