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Lender Forgives Debt on Foreclosed Home
A client came to us whose house had been foreclosed on. In fact the lender had recorded the deed to itself. In most instances any lawyer looking at the facts would tell the client, “sorry, there is nothing we can do. You came to us too late”. However, rather than send the client away, we took a close look at what happened and how the lender had handled things. In this particular situation, there had been fire damage to the client’s house, and rather than have the proceeds from the fire loss go to the client (the homeowner), the lender took the money. We filed suit against the lender and settled out of Court by having the lender deed the house back to the client and forgive the balance due on the mortgage. We doubt very much if there are many other lawyers who have ever been successful in getting a lender to deed a foreclosed home back to the homeowner and basically wipe out the mortgage.
Result: Settled out of court. Lender deed the property back to client.