Mortgage Foreclosure Legislation Stalls in General Assembly
On February 24, 2020, Kelly Guzzo attorney Kristi Kelly testified in opposition to a bill in the Virginia General Assembly that would result in increased wrongful foreclosures for Virginia homeowners. Kelly’s testimony before the Senate Judiciary Committee, along with representatives from the Virginia Poverty Law Center and Housing Opportunities Made Equal, led to the bill’s defeat.
The Virginia Supreme Court has maintained for over 200 years and as recently as 2018 that the trustee in a foreclosure must act impartially as a fiduciary to both the debtor and creditor. Banking interests sought to overturn this most basic doctrine of fairness, tilting the playing field in their favor and making it even easier to foreclose on homes.
In Virginia, consumer protections in foreclosure cases are already weak, even with the requirement for trustees to act without bias. With just 14 days notice, a bank can sell your home on the steps outside of a courthouse. There is no court oversight. In Virginia, you have more rights as a tenant than as a homeowner.
Compounding the risk for homeowners is how often cases of “wrongful” foreclosure occur. A wrongful foreclosure occurs when a mortgage company makes a mistake, such as improperly applying payments or “dual tracking” your mortgage, which is when a foreclosure occurs despite a homeowner entering a modification or loss mitigation process.
Kelly Guzzo has helped hundreds of homeowners resolve mortgage errors and prevent wrongful foreclosures. If you feel your mortgage company has violated your rights or you are facing foreclosure when you should not be, please contact our office. Our attorneys have extensive experience advocating for homeowners rights and can help to prevent and rescind unlawful foreclosures. We will evaluate your case free of charge.
Fri Mar 6, 3:05pm Share on Social Media