Thousands of Americans who have started recovering their finances after a foreclosure are being pressured by lenders to settle outstanding debts, an article on Reuters stated on October 14.
Investors may pursue those who have defaulted through “deficiency judgments” for the remaining money they owe on a loan after the foreclosed property was sold. Now, years after many borrowers were lead to believe that the matter was settled, lenders like Fannie Mae and Freddie Mac are pursuing some formers clients to settle their remaining debts by seizing assets, garnishing salaries, and freezing bank accounts. Lenders are justifying their actions by claiming that they suffered record losses in the housing crisis, but critics say that they should shoulder that responsibility because they knowingly invested in the risky mortgages.
Facing foreclosure aftermath can be frustrating, especially if you are just now getting your life and finances back on track. However, you may be able to prevent this from happening by enlisting an experienced foreclosure or debt negotiation attorney. Learn more about your legal options from the Cedar Rapids lawyers of Hong Law, PLC today by calling (319) 632-1400.
Coralville, IA 52241
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