The Missouri Bar

Law in Your Life #65: Foreclosure Lawsuits

The bursting housing market bubble has opened up new venues for homeowners in foreclosure to sue. Who can sue their lenders? What criteria do attorneys look for in a case? Today, Missouri Attorney Ed Hershewe discusses this and more with Law in Your Life host Angela Wilson.

Who can sue? Just homeowners? Or are there others?

What types of documents should people bring with them when they consult with an attorney?

What are some common denominators in these cases?

Listen to the full interview with Ed Hershewe below.

Download audio to your computer. (MP3, approx 13 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

What types of documents should people bring with them when they consult with an attorney?

What are some common denominators in these cases?

Listen to the full interview with Ed Hershewe below.

Download audio to your computer. (MP3, approx 13 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

What are some common denominators in these cases?

Listen to the full interview with Ed Hershewe below.

Download audio to your computer. (MP3, approx 13 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

Listen to the full interview with Ed Hershewe below.

Download audio to your computer. (MP3, approx 13 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

Download audio to your computer. (MP3, approx 13 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

3 Arrested in Foreclosure Scam

Three were arrested for falsely claiming they could stall foreclosures for desperate homeowners. The California Attorney General says the three operated as First Gov or Foreclosure Prevention Services, and charged up to $5,000 to allegedly renegotiate terms to save homeowners from foreclosure. The San Jose Mercury News has more details on the case.

Scammers are taking advantage of homeowners as a foreclosure relief package stalls in Washington. The FDIC wants to use part of the $700 billion bailout plan to fund the effort, while the White House looks at alternative measures. (See The Wall Street Journal for more)

What should you know if you need foreclosure relief?

• Buyer beware. If a company sounds too good to be true with their promises of foreclosure relief, chances are it is. Contact the Missouri Attorney General's Office and Better Business Bureau to see if complaints have been filed and if the business is considered in good standing.
• Negotiate early. Do not wait until you are in trouble to tell your lender you cannot make payments. Tell them quickly, try to negotiate a lower rate. They are more likely to work with you if you are honest from the start.
• Get budget help. Contact your area Consumer Credit Counseling Service for budget assistance. Nonprofit organizations charge little to nothing to help consumers get back on the right financial track. In some cases, they will help negotiate with creditors.
• Don't stop yet. If your home is in the midst of foreclosure, you still may be able to negotiate a deal to save your home. Continue working with your lender to find a solution both of you can live with.

Find out more in these Law in Your Life podcasts:

Foreclosure: Own a home in foreclosure, or looking to buy one? Listen here. 

Foreclosure and Bankruptcy: Think bankruptcy can help save your home? Find out here.

Bankruptcy Cases on the Rise

Already this year, Missouri federal bankruptcy courts have 7,000 cases to decide - an astronomical leap from just 1,400 filed last year. That's according to a new story from KCTV-5. Most are related to medical bills. (Read the full story)

What do you do if you have medical bills you can't pay for? Attorney Larry Ferguson discusses accuracy of medical bills and how you can negotiate a reasonable payment if you don't have insurance in this Law in Your Life interview.

Host Angela Wilson also finds out about bankruptcy and how bankruptcy can impact foreclosure in these Law in Your Life podcasts.

100 Foreclosed Homes Hit Auction Block Next Week

Buyers intent on good deals are headed to Missouri next week for foreclosure auctions in St. Louis, Kansas City and Springfield. According to a recent MarketWatch story, these deals are meant to be steals.

"Now is really the best time to buy a home and people waiting on the sidelines for the market to bottom out will probably miss out on deals," said Dave Webb, Principal, Hudson & Marshall. "Because of the oversupply of foreclosed homes banks are holding, lenders are eager to unload these properties at discounted prices," added Webb. (Read more at MarketWatch.com)

But look out. The process isn't as easy as just buying the home. And you could pay more than you anticipate after the auction. Attorney Lee Viorell explains what you should know before bidding on a foreclosed home in this Law in Your Life podcast with Angela Wilson.

Feds Take Over Fannie, Freddie

On Sunday, the federal government announced that it would take over Fannie Mae and Freddie Mac, two major players in the housing market. The companies are on the verge of going under with the collapse of the housing market, where Fannie and Freddie are leading lenders.

According to USAToday:

Fannie and Freddie will be placed in a government conservatorship that will assume the powers of their boards and management, said James Lockhart, head of the Federal Housing Finance Agency, which regulates Fannie and Freddie.

The Fannie and Freddie shake up is part of a housing market filled with foreclosed homes and some families who now face bankruptcy as a result. The Law in Your Life has several podcasts to help understand the situation.

Bankruptcy

Conservatorship

Foreclosure

Foreclosure and Bankruptcy

Bus Tours Highlight Foreclosed Homes

In Springfield realtors will hold bus tours to show prospective home buyers which homes are on the market as a result of foreclosure. The tours, which take place in Springfield this weekend, are part of a nationwide trend to let buyers know what some call foreclosure best deals versus homes that are simply for sale. (Read more)

But some say buying a foreclosed home is a buyer-beware situation, and only informed consumers should consider buying. What should you know before you decide to buy? Find out in this Law in Your Life podcast.

Post-Dispatch Tackles Missouri Foreclosures

The St. Louis Post-Dispatch takes readers through the foreclosure process from the perspective of bankers, lawyers, auctioneers and investors in this article.

The Law in Your Life offers several podcasts on this topic, including Friday's cast on how bankruptcy can impact foreclosure proceedings. You can also find out more in The Missouri Bar's Consumers and the Law Resource Guide.

Law in Your Life #45: Foreclosures and Bankruptcy

This week, lawmakers approved a plan to bail out lending giants Fannie Mae and Freddie Mac, two top companies in danger of losing billions as a result of the subprime mortgage mess. The U.S. government will give the nation's two top home lenders access to funds to make a turn around.  The plan could save the homes of nearly 400,000 Americans. (Read more)

This news means everything to the few whose homes will be saved, but the bailout won't save everyone from foreclosure. Some may consider bankruptcy to stall the process, or to start over with a clean credit record. In a special podcast this week, host Angela Wilson delves into the process of foreclosure and what impact bankruptcy has on the process with St. Louis attorney Ed Karfeld. (Internet Explorer users click twice.)

Download audio to your computer. (MP3, approx 14.4 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

Download audio to your computer. (MP3, approx 14.4 meg)
Note: in some browsers, the file may not begin playing until full file is downloaded.

Foreclosures at an All-Time High

Foreclosures nationwide topped the one million mark this week, and many analysts say it's only going to get worse. Nearly 450,000 homes went into foreclosure proceedings the first quarter of this year. Almost three million homeowners have missed at least one mortgage payment, with nearly 740,000 behind by three payments. (Read more in CNNMoney)

A recent study showed Missouri ranks 20 in the nation when it comes to foreclosures. That could easily change as more Show Me state families feel the economic pinch.

If you face foreclosure, or are afraid you might, check out this Law in Your Life podcast with attorney Lee Viorell. He discusses the before, during and after of foreclosure proceedings, and what prospective home buyers should know before buying or bidding on a foreclosed home. The Missouri Bar's Consumers and the Law Resource Guide
also offers up helpful information.

Foreclosures Up in Missouri

According to a recent study, the entire state ranks No. 20 in foreclosure rates nationwide. Nearly 9,000 Missourians faced foreclosure last quarter, which ended in March. That's one in nearly 300 families.

In this Law in Your Life podcast, attorney Lee Viorell discusses what you need to know before, during and after foreclosure proceedings. You can also learn more from The Missouri Bar's Consumers and the Law Resource Guide.