Even the faintest hint of a foreclosure is enough to give any homeowner nightmares. For the homeowner that has missed mortgage payments, the idea of foreclosure is even more frightening. After receiving notice after notice concerning default payments and defending threats of an impending foreclosure for as long as possible, it is easy to understand why a homeowner would think they have a golden ticket out of harm’s way in the form of a mortgage forgiveness letter. However, as the saying goes, not everything that glitters is gold.
In some cases, homeowners have received letters from their lender stating that the mortgage has been forgiven and/or that the foreclosure case has been dropped. Now, it is entirely possible that the lender may not have had a solid foreclosure case against the homeowner, and decided not to invest in the fees and court cases associated with pursuing a foreclosure to the maximum extent. If this is the case, it is certainly realistic that the lender would inform the homeowner that the foreclosure is not moving forward.
However, it is highly important that any communication sent by a lender to a homeowner is independently evaluated for accuracy. Many homeowners are weary to trust banks, and may automatically want to verify that what the lender says is true. For those homeowners eager to accept the lender’s statements as true, it is crucial to be skeptical when it comes to the status of your home.
The only way to know with 100% certainty if the lender has discharged your debt is if you receive a satisfaction of mortgage from your lender and it gets recorded in the public records. It is important for homeowners to understand that lenders are swamped with potential foreclosures and could easily make a mistake in informing the wrong homeowner with good news. If the lender does not easily comply with your demands for proof of its claims, you will want to consult with an attorney to ensure that the lender’s letter is valid and to obtain the proper documentation to prove the lender has forgiven the mortgage. Once the satisfaction of mortgage is recorded, then, and only then, the homeowner can finally rest easy.
Stephen K. Hachey, a Florida foreclosure attorney, can help your wade through this process and determine a positive solution. Contact him at 813-549-0096.
The opinions in this post are solely those of the author. The author takes full responsibility for the content. Like all blog posts, this is offered for general information purposes and does not constitute legal advice.