Residential Mortgage Loan Related Settlements
Several banks, including some affiliates and subsidiaries, and mortgage loan servicers have recently agreed to out-of-court settlements that may benefit some New Hampshire homeowners. These agreements require the bank or servicer to provide some financial assistance to homeowners that meet certain qualifications. Assistance could include mortgage modifications, principal forgiveness, or help with short sales. The Ocwen and SunTrust settlements also include monetary relief for some homeowners that lost their homes to foreclosure.
In most cases homeowners will be required to complete a claim form or an Application for Modification and the bank or servicer will determine the type and the amount relief to be received. If you have questions about these settlements please call the numbers below or call 2-1-1 and talk with a local housing counselor (for free), to discuss all of your options.
September 2014 – Flagstar Bank – Call 855-411-2372 or visit this web page for more information.
August 2014 – Bank of America. Call 877-488-7814 or visit this web page for more information.
July 2014 – Citigroup. Call 866‐272‐4749 or visit this web page for more information.
June 2014 – SunTrust. Call 800-634-7928.
December 2013 – Ocwen Loan Servicing. Call 866-783-5382 or visit this web page for more information.
November 2013 – JP Morgan Chase. Call 866-550-5705 or visit this web page for more information.
Tenant Rights in Foreclosure
Are you a renter in a property that is going through foreclosure? Did you know you have certain rights under a recently enacted federal law known as the “Protecting Tenants at Foreclosure Act” (PTFA)? Under this law, foreclosing mortgagees and persons who purchase tenant occupied residential property at foreclosure sale have important obligations to tenants who reside in such properties.
What Are the Tenant Rights and Owner Obligations Under Federal and State Law?
If the tenants residing in the property have leases, they have the right to continue living in the property under the terms of the existing lease until it expires. If there is no lease the new owner of the property must give the tenants at least 90 days written notice to vacate.
If a tenant is residing in the property pursuant to a HUD Section 8 Housing Assistance Payment (HAP) contract, the new owner may not utilize the provision of the HAP contract and lease which permit the owner to terminate the tenancy for “other good cause” based on the owner’s desire to withdraw the property from rental use. Rather the tenant is entitled to remain until the expiration of the lease or 90 days, whichever is later.
The only exceptions to these rules are:
- If the owner wishes to make the premises his or her primary residence, 90 days notice to vacate is sufficient; or
- The tenancy in question is not a “bona fide tenancy” A lease or tenancy is bona fide if:
- the mortgagor, or the child, spouse, or parent of the mortgagor is not the tenant;
- the lease or tenancy was the result of an arms length transaction; and
- the rent for the unit is not substantially less than market rent for the property, unless the unit’s rent is reduced or subsidized due to a Federal, State, or local subsidy.
A foreclosed property occupied by tenants is “restricted property” pursuant to NH RSA 540:1-a I,II unless the property is a single family home (NH RSA 540:1-a,I (d). Foreclosing mortgagees and those who purchase restricted properties from them must not only give at least 90 days written notice to vacate prior to evicting a tenant (if the tenant doesn’t have a lease providing for a longer period in residence), but the owner must prove “good cause” for eviction. Keep in mind that the mere fact of foreclosure on a multiunit rental property is not necessarily good cause. Even if there is no lease and the property is “non-restricted” the new owner will still have to provide the tenant with 90 days notice to vacate and use the judicial eviction process if the tenant doesn’t vacate within the 90 days.
It is critically important for the mortgagee or purchaser of a renter occupied residential property at foreclosure to remember that under the PTFA he or she is stepping into the shoes of the landlord until the tenancy is terminated pursuant to the requirements of PTFA and RSA Chapter 540. This means that the mortgagee or new owner must abide by the terms of the existing lease or oral rental agreement. Thus if the lease or rental agreement calls for certain utilities to be provided by the landlord, the new owner must do likewise. Failure to do so is likely to result in courts issuing injunctions against property owners and/or damages awards for wrongful eviction.
Source: Elliott Berry, Esq., Managing Attorney, New Hampshire Legal Assistance
For more information about tenant rights, please visit:
Legal Advice and Referral Center (LARC) 48 S. Main Street Concord, NH 03301 Phone: 1-877-399-9995 Web: www.nhlegalaid.org
Governor Hassan Announces HomeHelpNH Assists Over 800 At-Risk Homeowners in First Year
“While we have seen significant improvement in the state’s housing market and foreclosure rate, we must continue to help those who are still feeling the impact of the recession,” Governor Hassan said. “Thanks to HomeHelpNH, hundreds of New Hampshire’s middle class families have received expert counseling to achieve the best possible outcome given their housing and financial situations. By remaining committed to providing our citizens with the tools and resources they need, we can continue to strengthen the health of our housing market, communities and economy. I want to thank all of the partners of this innovative public-private initiative, and I encourage New Hampshire homeowners at risk of foreclosure to dial 2-1-1 or visit HomeHelpNH.org to access expert counseling that is free, knowledgeable and timely.”