Were You Forced to Waive Your Rights to Get Help?

by Paul Kiel ProPublica

ProPublica recently learned of several cases where mortgage servicers required homeowners to waive their rights as part of an agreement to avoid foreclosure. In these cases, contracts provided by home mortgage servicers included clauses requiring borrowers to waive rights or state they had no defense to foreclosure.

It’s hard to tell how widespread this practice is. In some cases, mortgage servicers insert ambiguously-worded clauses that could later limit a homeowner’s defense to foreclosure.

Here are just a few examples of the clauses we found deep in the fine print:

From a Selene Financial Forebearance Agreement

From a Citi Modification

From a Bank of America Forebearance Agreement

Do any of these look familiar? If you have signed a forbearance or modification agreement, please take a close look at the fine print and then share your experiences with us. Simply email me [4] with the subject line “Waiver clause.”

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