When homeowners fall behind on their mortgage payments and risk foreclosure, they may feel powerless. If you own a property with a mortgage, you should be aware of your rights regarding foreclosure.
The goal of foreclosure mitigation is to assist you in making changes to your mortgage arrangement that will make it more manageable. Let’s take a closer look at these adjustments and talk about foreclosure defense in greater depth.
In a mortgage modification, the homeowner persuades the lender to revise the mortgage conditions to reduce the monthly payments. Mortgage modifications can include:
• Reducing the principal
• Eliminating or lowering penalties and late fees
• Changing the interest rate
• Extending payment deadlines
Common Defenses Against Foreclosure
A good foreclosure defense lawyer will present one or more sorts of defenses. A few popular foreclosure defenses are described here.
The Bank That Foreclosed Didn’t Observe State Procedures
Foreclosures are handled differently in each state. The foreclosing bank may not follow state procedural standards while pursuing a foreclosure action in specific situations. You could be able to fight the foreclosure in this case. If your defense is successful, the judge will issue a ruling requiring the foreclosing financial institution to begin the foreclosure process all over again.
Be mindful, however, that almost all judges will ignore minor inconsistencies, such as a misspelled name. Likewise, if the repossessing bank’s error does not materially hurt you, it may not be worth the fight. The court will respond more severely to more significant breaches.
The Mortgage Provider Made a Critical Error
Everyone makes errors from time to time. As a result, it’s possible that a lender committed an error on your mortgage or papers. Indeed, one of the primary reasons more people are successfully contesting foreclosure is that lenders made mistakes.
You may be able to contest the foreclosure if there are mistakes, such as:
• The foreclosing entity cannot establish standing or ownership of the debt. The bank must present the promissory note, which may be difficult if the debt has been transferred a few times.
• There was a severe error in the loan servicing. It’s a big deal if the lender makes a mistake on the amount you have to pay to get your mortgage reinstated.
• The deadline for filing a claim has gone. The defense is strong if the lender did not act within the necessary window between the time you ceased making payments and the action.
• The lender utilized a false affidavit or statement.
You Are Currently Serving in The Military
The Servicemembers Civil Relief Act offers unique protections to active service personnel. Most crucially, unless the lender receives a waiver from you, if you signed up your loan before going on active duty, your foreclosure must occur in court, even though foreclosures in your jurisdiction are done out of court. This act also allows certain foreclosure protections if a service person obtains a mortgage after leaving active duty.
File for Bankruptcy
Filing for bankruptcy is among the most common and effective foreclosure defense strategies. In this situation, your house will be designated an unsecured possession, and the bank will be able to oppose the bankruptcy claim. The lender now bears the burden of evidence in demonstrating a proper chain of assignment. Contact a bankruptcy lawyer to guide you through this process.
The foreclosure defenses discussed in this article are only a handful of the many options available to you. Any particular foreclosure or legal issue has a plethora of possible claims and defenses; therefore, it’s advisable to seek the opinion of Fair Fee Legal Services to examine all of the options open to you.
Fair Fee Legal Services
8665 South Eastern Avenue, Suite 101 Las Vegas, NV 89123