FHA loans are special because they carry a guarantee from the FHA, and borrowers have special rights which the banks must respect. If the lender an agency of the Department of Housing and Urban development
If lenders take a loss on an FHA-insured loan they can make an insurance claim to the FHA and be made whole with taxpayer money. It’s really a no-risk loan. In exchange for those federal guarantees, though, the banks have to comply with the HUD regulations before it files to foreclosure an FHA mortgage. Three of the HUD requirements that is must comply with are:
- 24 CFR 203.604 – which requires that the bank have a face-to-face interview with the homeowner before commencing the foreclosure;
- 24 CFR 203.602 – which requires the bank to send the homeowner a brochure on how not to lose his/her home shortly after the default; and
- 24 CFR 203.605 – which requires the bank to review the borrower for available loss mitigation options before commencing the lawsuit.
Florida law is that if the bank fails to comply with either one of these regulations the foreclosure action is illegal and must be thrown out.
Time and again we have had cases where the banks either didn’t comply with the HUD regulations or lied about complying with them.
Our firm has worked on over 80 FHA foreclosure cases and won or settled over 50. Unlike other cases, we represent FHA cases on a pure contingency basis, meaning that the borrowers do not have to pay us for our legal services if we decide to accept the cases. If we win, our fees will be paid by the bank. If we lose, we absorb the cost of the loss.
We were facing foreclosure when we reached out to Malcolm Harrison and his staff. Malcolm took on our case on a contingency basis and did not charge us anything at all. Only through their expert knowledge of the law did we realize that ours was not your textbook foreclosure at all. Malcolm, Michelle and Danielle never waivered in their diligence and put forth the extra effort needed to win our case. Through it all, they remained very personable and friendly, but also professional, legally accurate, and knowledgeable with prompt replies to all our questions and communication in layman’s terms. We will be forever grateful for all their efforts and would recommend them to anyone needing similar legal advice.Nancy
I was so happy to receive Malcolm Harrison’s letter in the mail to help me with keeping my home. His letter different from another attorney “s letters, was his compassion to help me keep my home. He immediately got on the phone when I called with his so very qualified staff. I knew immediately he was an attorney who was compassionate for my situation and spoke with such professionalism. I hired him immediately! He was so well prepared when we appeared before a judge. Even the judge was quite impressed! He helped me get a loan modification with his staff and I can’t express how appreciative I am to him and his staff. His staff was always there for me whenever I needed a question answered. Thank you from the bottom of my heart! Sandra JonesSandra