Michigan Judge Says Failure To Modify Loan In Violation Of HAMP Is Defense To Set Aside Foreclosure & Can Be Raised In Subsequent Homeowner Eviction

In Macomb County, Michigan, Workers World reports:

• The Michigan Moratorium NOW! Coalition to Stop Foreclosures, Evictions and Utility Shutoffs has recently scored important victories in the fight against home foreclosures and evictions.

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• Attorneys who work with the coalition won a significant court victory on an appeal in a foreclosure eviction case. The Macomb County Circuit Court held that a lender’s failure to modify a loan in accordance with the federal Home Affordable Modification Program can be asserted as a defense to void a foreclosure, and that this defense can be raised by homeowners in an eviction proceeding stemming from the foreclosure. This is one of the first cases in the country to affirm this right.(1)

Source: Coalition wins foreclosure victories.

(1) Despite these victories, coalition organizers report that the foreclosure and eviction crisis is intensifying, according to the story. Jerry Goldberg, a foreclosure attorney and coalition leader, noted how increasingly the government, through Fannie Mae and Freddie Mac, is the main culprit in eviction actions stemming from foreclosures.