Champion Mortgage Foreclosure Defense

Champion Mortgage was purchased by Nationstar Mortgage in 2006. In May of 2022, the company was then purchased by Mr. Cooper Group. Still, many homeowners who originally had mortgages with Champion are still in fear of losing their homes. When it was fully operational, Champion Mortgage dealt mainly with reverse mortgages, which can be questionable in the best of circumstances. Champion Mortgage has had many complaints filed against it in the past most of which state that the lender took advantage of aging individuals.

If you have received notice of foreclosure either from Mr. Cooper Group, Nationstar Mortgage, or Champion Mortgage, it is important to obtain legal advice. Below, one of our Fort Lauderdale foreclosure defense lawyers outlines some of the complaints filed against the company and the defenses you can use to keep the home of you or your loved one.

What is a Reverse Mortgage?

Reverse mortgages are geared mainly towards older individuals. These homeowners can use the equity in their home to obtain a lump sum from the lender. No mortgage payments are made as long as the individual still lives in the home. Sometimes, this means that the original homeowner is liable for the debt if they have to move from the home into a long-term care facility. In other instances, it means the original homeowner’s heirs must repay the debt after the homeowner passes away.

Contrary to what many companies want consumers to believe, reverse mortgages are not free money. The loan is borrowed against the equity in the home and while payments are not made monthly, interest charges and other fees are applied to the loan each month. This means that while the amount owed increases, the equity in the home decreases.

When Can Lenders Foreclose on a Reverse Mortgage?

There are many instances that can result in a reverse mortgage foreclosure. The most common of these include:

• A beneficiary or original borrower sells the home,
• The last surviving borrower has left the residence for 12 consecutive months because of illness,
• The borrower fails to properly maintain the property,
• The borrower lapses on their insurance payments,
• The borrower does not pay the proper amount of property taxes, or
• The borrower passes away.

Foreclosures Based on Failure to Pay Property Taxes

Regardless of whether someone has a traditional mortgage or a reverse mortgage, failing to pay property taxes can result in foreclosure. Fortunately, due to two requirements implemented by the U.S. Department of Housing and Urban Development (HUD) in 2013 and 2015, the number of foreclosures due to defaults on property taxes has greatly reduced. Still, those requirements were implemented after Champion was purchased by Nationstar Mortgage. Before that time, a failure to pay property taxes was one of the main causes of Champion’s foreclosures.

Obtaining a Letter of Authorization

Again, many people who take out reverse mortgages are older and have acquired a significant amount of equity in their homes. These older individuals often do not have the capacity to speak to lenders, understand their mortgage agreements, or defend themselves against a foreclosure action.

Due to these circumstances, one of the first things to do if you have a loved one in fear of foreclosure is to obtain a letter of authorization from the homeowner. Due to privacy concerns, lenders are usually very hesitant to speak to anyone but the homeowner about the home loan. You must obtain a letter of authorization from the homeowner that allows you to speak to the lender on your loved one’s behalf.

Other Complaints Against Champion Mortgage

In addition to taking advantage of elderly people and foreclosing on failure to pay property taxes, there have been many other complaints filed against Champion Mortgage. One class action lawsuit that is seeking $5 million argues the company defrauded thousands of homeowners by charging them with home inspections that were not only unnecessary but also unlawful. These charges were added to the balance of the loan, which means there was even less equity in the homes.

Other homeowners have complained that Champion foreclosed due to faulty loan servicing. This is a common complaint against mortgage lenders throughout the world, but due to the fact that the company has been sold and acquired so many times, it is not surprising the company has faced these complaints.

Faulty servicing often means that the company trying to foreclose on the home does not actually have the note to the loan. This is legally known as a lack of standing. When a person does not have standing, they have nothing to lose from a certain situation. In mortgage cases, it means a company is not losing anything from the default of the loan.

Faulty loan servicing often occurs when a mortgage, or bundle of mortgages, changes hands several times. As these transitions occur, notes and other important documents proving a lender get lost, or companies become confused and believe that they own a loan when they do not. Sometimes, mortgage companies are even dishonest and try to foreclose on a home when they know they do not own the debt.

Champion Mortgage has given itself a very bad name during the years it was operational. Not only have many consumers complained against the company, but the Better Business Bureau (BBB) has also given the company a one-star review. There are also multiple bad reviews about Champion on the Consumer Affairs website.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Defend Against Champion

At Loan Lawyers, our Fort Lauderdale foreclosure defense attorneys have seen many foreclosure cases involving Champion and have aggressively defended against them. We know the tactics they use against older generations and will not let your family be taken advantage of. If Champion has threatened you or a loved one with foreclosure, it is important that you call us now at (954) 523-4357 or fill out our online form to schedule a free review of your case with one of our knowledgeable attorneys and to learn more about how we can help with your case.