Post on 07-Apr-2018
8/6/2019 New Mexico Report from the Attorney General - Helping New Mexicans hold on to their mortgages
http://slidepdf.com/reader/full/new-mexico-report-from-the-attorney-general-helping-new-mexicans-hold-on 1/3
News
News Article
2011 Bill Analysis
Submit Health CareBill Comments
2011 Update to NMSunshine Law
Hot Topics
Annual Report 2009 -
Despite budgetary
constraints, a great deal
was accomplished for New
Mexico in 2009 by theprofessionals in the
Attorney General’s Office.
You areat:
NMAG Home > Newsroom > News >News Article
Report from the Attorney GeneralMonday, February 21, 2011
Report from New Mexico Attorney General Gary K. King...Helping NewMexicans hold on to their mortgages. Full Article »
Full Article
One of the unfortunate results from the depressed economy in NewMexico has been the proliferation of foreclosure rescue scams, mostlyfrom out-of-state companies. To address these frauds, my officeproposed legislation in the 2010 Legislative session – the ForeclosureConsultant Fraud Act – to prevent rescue scams from operating in NewMexico. This new law has successfully prevented these companies fromoperating in our state.
But these remain challenging times for lawmakers and governmentofficials because thousands of New Mexicans are still facing serious
The Office Newsroom Need Help? Calendar Publications Opinions Sitemap
rt from the Attorney General - NM Attorney General http://www.nmag.gov/Articles/newsArticle.aspx?Article
6/16/2011
8/6/2019 New Mexico Report from the Attorney General - Helping New Mexicans hold on to their mortgages
http://slidepdf.com/reader/full/new-mexico-report-from-the-attorney-general-helping-new-mexicans-hold-on 2/3
troubles with their home mortgages and they need our help. The numberof foreclosures has increased significantly in New Mexico as a result of the national mortgage crisis. Many homeowners who were marketedloans with teaser rates, negative amortization or subprime interest ratesand terms – known as “toxic” loans- have found themselves unable tomaintain their mortgage payments and have been forced intoforeclosure. With the depression in the housing market, home pricesdropped and homeowners found that they owed more on their mortgagethan their home is now worth. The downturn in the economy, causing
an increase in unemployment, has put more homeowners at risk of foreclosure and loss of the family home. At the same time, foreclosurerescue scams have targeted homeowners who are enticed to pay a largeup front fee by false promises to “save the family home”.
My Consumer Protection Division is providing assistance to homeownersto negotiate loan modifications or loss mitigation alternatives toforeclosure – where feasible. As a result of these efforts, manyhomeowners have completed a loan modification and stopped the loss of their home.
Many people have heard about the “robo-signers” who preparedfraudulent or deficient affidavits for submittal to the courts in foreclosure
proceedings. I am currently participating in the multi-state investigationof mortgage servicers and lenders that will address the unfair anddeceptive industry practices identified through this investigation.
Meanwhile, in this year’s legislative session, Senator Michael Sanchez issponsoring SB 406 to enact the “Mortgage Fair Foreclosure Act” toeliminate the problem faced by homeowners who are trying to completeloan modifications and working with the mortgage servicer only to findout that the lender has filed a court action to foreclose on the home. SB406, if enacted, requires transparency of information from lenders tohomeowners about a claim of default, prior accounting records, available
loss mitigation alternatives, and who to contact to try and modify a loanto avoid foreclosure. Also, this bill will assure homeowners a meaningfulopportunity for loss mitigation, such as loan modifications, forbearance, adeed in lieu, or other alternatives intended to either preservehomeownership or to avoid the adverse consequences of foreclosure. Theprovisions of the bill also provide that should loss mitigation be denied,the homeowner shall be provided the reasons for the denial. Lossmitigation efforts must be terminated before the lender files suit forforeclosure. This provision protects homeowners from the problemsinherent in the dual track process where a homeowner may be workingwith the servicer to avoid foreclosure while, at the same time, the lenderfiles the foreclosure suit in court, increasing the risk of losing the homeand resulting in increased assessed costs.
These and other measures to protect responsible mortgage holders arenecessary steps to ensure that the American dream of homeownership ispreserved for New Mexicans too.
By Gary K. KingNew Mexico Attorney General
###
rt from the Attorney General - NM Attorney General http://www.nmag.gov/Articles/newsArticle.aspx?Article
6/16/2011
8/6/2019 New Mexico Report from the Attorney General - Helping New Mexicans hold on to their mortgages
http://slidepdf.com/reader/full/new-mexico-report-from-the-attorney-general-helping-new-mexicans-hold-on 3/3
Attachments
There are no attachments.
Return to List
Meet AG King / FAQs / Employment Opportunities / Tobacco Information / Charities / Contact UsImmigrant Services / Servicios al Inmigrante | Video and Audio
(505) 827-6000 Santa Fe(505) 222-9000 Albuquerque(575) 526-2280 Las Cruces
©2007 New Mexico Attorney GeneralAll rights reserved.
Translation Disclaimer
Translate
Gadgets powered by Google
rt from the Attorney General - NM Attorney General http://www.nmag.gov/Articles/newsArticle.aspx?Article
6/16/2011