In this video attorney Jason McGrath discusses some options when negotiating legal judgments between opposing parties in a lawsuit.
If you are in need of legal assistance with a Legal Judgment in North Carolina, South Carolina, Tennessee, Georgia or Florida please fill out our confidential client intake form.
The following is a summary of a foreclosure hearing that McGrath & Spielberger assisted a borrower with, and is provided for informational purposes only. Each case, each client, each situation is different, and each matter may have a different outcome.
Mortgage Loan Servicer / Foreclosing Bank: RoundPoint Mortgage Servicing Corporation
Prosecuting Trustee / Law Firm: Substitute Trustee Services, Inc. and Hutchens Law Firm
Property Location: Charlotte, Mecklenburg County, North Carolina
Property Type: Primary residence
Borrower’s Attorney: Jason A. McGrath, Esq.
Hearing Date: May 2016
Actions Taken by McGrath & Spielberger on Behalf of Client in Relation to the Foreclosure Hearing: Mr. McGrath attended the foreclosure hearing with the client and argued a Motion to Continue to the court in order to help client avoid foreclosure.
Foreclosure Hearing Outcome: Mr. McGrath successfully moved to continue the hearing; foreclosure avoided.
If you are facing a foreclosure situation in North Carolina please fill out our confidential client intake form for legal assistance.
Jun 17, 2013 – “I’ve seen all of those things that this lawsuit has mentioned. Yes I have,” said Jason McGrath a foreclosure attorney in Charlotte. McGrath helps … (click here to see the TV broadcast story and interview excerpts)
By Blair Miller
CHARLOTTE, N.C. —
Eyewitness News took a closer look at the allegations in the latest lawsuit on Monday night.
The lawsuit against Bank of America lays out some strong accusations. It claims the Charlotte-based bank gave cash bonuses and gift cards to employees who pushed homeowners into foreclosure.
It was the heart of the recession, at a time when many homeowners were looking for help, but on Monday night, according to a new federal lawsuit, former employees claim loan collectors who put customers into foreclosure were rewarded with gift cards to Target and Bed, Bath and Beyond.
The suit said those who would put at least 10 customers into foreclosure would get $500 bonuses.
According to Bloomberg, ex-Bank of America employees said mortgage workers falsified records and were told to delay applications for government loan assistance by asking customers to fill out paperwork that had already been received.
“I’ve seen all of those things that this lawsuit has mentioned. Yes I have,” said Jason McGrath a foreclosure attorney in Charlotte. McGrath helps clients save their homes.
He said on Monday night that he works with Bank of America often and he is glad that the public is hearing the claims.
“It’s one of those things that it’s great for folks like me because we experience this on a day-to-day basis and we are finally glad to see it see the light of day,” said McGrath.
On Monday night, in a statement to Eyewitness News about the lawsuit, Bank of America said, “These attorneys are painting a false picture of the bank’s practices and the dedication of our employees. While we will address the declarations in more depth when we fire out opposition to the plaintiff’s motion next month, suffice it is to say that each of the declarations is rife with factual inaccuracies.”
McGrath said in some ways the lawsuit helps his clients.
“Some of my clients say I’m so glad to hear you tell me other people are going through this and it’s not just me. They feel much more persecuted. It’s weird since they feel better that other people are going through this as well,” he said.
Seven former loan employees are pushing to get the lawsuit approved for class-action status.
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By Showcase Realty On October 14, 2014
Charlotte-area foreclosure filings dropped 16 percent in August from a year ago, as they also fell across the U.S.
The Charlotte region had 982 filings – which comprise default notices, scheduled auctions and bank repossessions – down from 1,166 a year ago. North Carolina filings fell to 2,361, a decline of 12 percent.
Nationwide, foreclosure activity fell largely as a result of fewer properties starting the foreclosure process, according to real estate data firm RealtyTrac. U.S. foreclosure starts dropped to 55,775, their lowest level since December 2005.
For Charlotte, it was the third month in a row of year-over-year declines.Observers point to at least two trends driving down Charlotte foreclosure filings: Rising home prices are increasing equity in homes that are “underwater,” making the owners less likely to allow their properties to fall into foreclosure. Also, they say, some lenders are opting to sell distressed Charlotte-area homes to investors.
“Some of the institutions don’t really want to be in the foreclosure business, so they unload some of their notes that are in default, or nonperforming notes, they call them,” said Nancy Braun, owner of Charlotte-based Showcase Realty.“They sell them to investors at a fraction of the value,” she said. “The investors then can take on the unpleasantries of possibly foreclosing on the party or renegotiating the note with the borrower or doing a short sale with the borrower.”
In Charlotte, investors such as private equity firms have been snapping up bank-owned properties to convert them into rentals. Braun said investor purchases are a factor in Charlotte’s tight inventory situation.
“That’s part of the reason … there’s a shortage of inventory,” she said.
Charlotte’s drop in foreclosures also coincides with home prices increasing here and elsewhere. On Tuesday, the Charlotte Regional Realtor Association reported the average home price in the region rose to $237,635 in August, the largest year-over-year gain so far in 2013. That’s up 11 percent from $213,846 in August 2012.
Home prices are rising across the U.S. as mortgage rates increase and supplies of homes for sale remain tight in many areas. RealtyTrac says the increase in prices is good news for homeowners who are underwater – those who owe more on their homes than they are worth. Those owners have more equity as prices overall rise.
Foreclosure filings in Charlotte remain below their peak of 2,141 in August 2009.
Even though overall filings fell in the Charlotte region, bank repossessions and default notices increased year over year in August, RealtyTrac said. Repossessions climbed 33 percent to 330 properties, compared with 249 properties a year ago. Default notices increased 1,620 percent, to 172 from 10 a year ago.
‘Desperate homeowners’
While overall foreclosure filings are down, Charlotte homeowners who have already fallen into foreclosure are still battling their lenders.
Jason McGrath, a Charlotte-based lawyer who defends struggling homeowners, said his office, in roughly the past few months, has seen an increase in demand from clients facing foreclosure hearings that are only a week or two away or whose homes are already scheduled for foreclosure sales.
“There are clearly many desperate homeowners out there that are still facing foreclosure and are still struggling to make every effort they can to avoid it,” he said.
Despite the falling number of foreclosure filings, some predict a surge in foreclosures in coming months.
Daren Blomquist, vice president for RealtyTrac, said foreclosures are expected to rise in some U.S. markets as lenders move forward with foreclosure starts that had been delayed.
McGrath expects an increase in Charlotte, too.
“There’s some theory out there that we’re going to see a ramp up in foreclosure filings in 2014,” he said.
Source: http://www.charlotteobserver.com/2013/09/12/4306203/charlotte-area-foreclosure-filings.html
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North Carolina lawmakers are poised to renew a rule requiring homeowners to pay state income taxes on mortgage debt forgiven by lenders – a move that could cost some homeowners thousands of dollars in additional taxes.
For years, North Carolina allowed taxpayers not to count written-off mortgage debt as taxable income after Congress, responding to the mortgage crisis, enacted a similar exclusion on federal income taxes.
In 2013, North Carolina took away the exclusion for the first time since the crisis. And last week the N.C. Senate passed a bill that would not allow the exclusion for tax year 2014. The House is expected to vote on the measure this week.
To illustrate what the bill would mean, if a homeowner received $20,000 in mortgage principal forgiveness, he or she would have to pay $1,160 in additional taxes, based on the state’s individual income tax rate of 5.8 percent. If $40,000 were forgiven, he or she would owe $2,320 in additional taxes.
Analysts say the proposal, which is included in a bill changing the state’s gasoline tax, could affect as many as 4,000 N.C. homeowners caught up in the mortgage crisis.
Republican and Democratic lawmakers are divided on the proposal, which General Assembly staffers estimate will bring in about $14 million in 2014 tax revenue.
Republicans say the move would be consistent with other tax changes that have lowered rates and eliminated many deductions.
But Democrats and some consumer advocates say it would hurt homeowners struggling to recover after falling into foreclosure and defeat the purpose of a lender providing the debt relief in the first place.
“This is not a good policy,” said Al Ripley, director of consumer and housing affairs for the North Carolina Justice Center. “We want to try to create situations where they will be able to afford to stay in their house … not engage in policies that will take resources away from those families and make it more likely that they will end up in foreclosure or face other economic hardship.”
Taxpayers can still claim the exclusion on 2014 federal income taxes after President Barack Obama signed an extension in December. The exclusion stems from the Mortgage Debt Relief Act of 2007.
As recently as two years ago, North Carolina was one of seven states not allowing taxpayers to exclude canceled mortgage debt from taxable income, according to a study by H&R Block.
The N.C. Department of Revenue said it is still compiling data for tax year 2013 and does not know how much additional tax revenue the state collected on canceled mortgage debt that year.
Lawmakers divided
The proposal to not allow the exclusion prompted a passionate debate in the N.C. Senate on Thursday. Among other tax changes in the bill is the loss of a taxpayers’ deduction of college tuition expenses.
Together, the changes are expected to mean an additional $73 million in state revenue.
Republican Sen. Harry Brown of Onslow County said not having that revenue would hurt working families.
“What you’re talking about is 70-some million of revenue that the state would have to come up with …” said Brown, co-chair of the Senate Appropriations Committee. “Are you going to take it from teachers? … Or Health and Human Services? Or the court system? That should be part of the argument.”
Senate Finance Committee Chairman Bob Rucho, a Matthews Republican, said lawmakers are seeking the changes to be consistent with other tax changes that have lowered rates and eliminated many deductions.
“We just feel like consistency is important,” Brown said later. “It’s pretty much aligned with our tax reform. We think driving the rates down will serve (the middle class) in the long run.”
But Senate Minority Leader Dan Blue of Raleigh said the bill means that “we kick people while they’re down.
“If they had money they wouldn’t be in foreclosure,” he told colleagues. “What we’re doing is saying you have to come up with money because you managed to get the mortgage company to forgive this loan. You’re wrapping something around their neck probably for the rest of their lives.”
Democratic Sen. Joel Ford of Charlotte said in a $21 billion state budget, Republicans could make up for the revenue elsewhere.
“We just need to prioritize working families rather than corporations and special interests,” he said. “You mean to tell me you folks can’t find ($73 million) for the working families of North Carolina? If you can’t find it you should be ashamed of yourselves.”
Bart Hildreth, executive director for the Washington, D.C.-based National Tax Association, said it’s appropriate for state legislatures to take a second look at tax policies, such as those put in place in response to the mortgage crisis.
“Policy experts typically recommend that states revisit each of those periodically to see if they’re still meeting public policy goals,” he said. “You don’t want it all to be on autopilot.”
N.C. foreclosures still high
The proposal comes at a time when foreclosure activity in North Carolina and Charlotte remains higher than in much of the U.S.
According to a report released Thursday by data firm RealtyTrac, one in every 711 housing units in the Charlotte region had a foreclosure filing in January, the 35th-highest rate in the U.S. among 213 metro areas. North Carolina posted the 14th-highest rate: one filing for every 1,044 housing units.
The proposal also comes as Bank of America is just starting to provide $7 billion in consumer relief nationwide as part of its $17 billion settlement with the U.S. government announced last year. Some of that relief is expected to take the form of principal reductions on mortgage loans.
Bank of America spokesman Dan Frahm said the bank has forgiven more than $164 million in principal on 3,600 home loans in North Carolina since 2008. The average amount forgiven over that period is nearly $45,000, he said.
Jason McGrath, a Charlotte-based attorney who works with clients dealing with mortgage disputes and foreclosures, said that while foreclosure activity is falling nationwide and locally, many homeowners are still fighting to keep their homes.
“My firm is as busy as we have ever been with regard to those kinds of cases,” he said. “The overall numbers may be down, but it’s still very much an ongoing issue.”
He said some homeowners might pass up an offer of mortgage relief that could give them much-needed assistance because of the increase in taxes the homeowners might have to pay later.
“It certainly can be part of a self-defeating process” to forgive mortgage debt only to tax consumers on that aid, “smacking them on the back end.”
http://nchousing.org/housing-matters-newsletter/archives/
