If you are one payment behind on your mortgage, chances are you will not be given notice of a foreclosure tomorrow. But if you are several months behind it is likely your loan is up for foreclosure review at this very moment. The rule is that your lender cannot start a foreclosure until you are at least 120 days past due, but what happens after that is fair game.
The Consumer Finance Protection Bureau (CFPB) instituted the 120 day rule but it is important to understand what happens after that time period:
- In Florida, a foreclosure is a judicial process, which means the lender has to actually file a lawsuit to foreclose its mortgage.
- After the lawsuit is filed it has to be served on the borrower, and the borrower then has a set number of days to respond.
- If the borrower does not respond to the lawsuit within the time frame allotted, the lender will have a judgment entered and then sell the property at foreclosure sale.
- If the borrower files an answer, the process takes a bit longer because the lender is required to address the issues raised in the answer.
Common issues or defenses that are raised by homeowners are that the lender does not currently hold the note, or that the lender did not hold the note prior to initiation of the foreclosure case. You see, lenders have to follow the rules in place in order to start a foreclosure and one of those rules is that the lender actually has the right to foreclose. In order to show that the right to foreclose is vested in the lender who filed the suit, the lender has to prove to the Court that they are in possession of the loan. If this is not done, the lender is said to lack standing to foreclose and the suit should not proceed forward. There are other defenses that can be raised as well, and they should all be explored if you have been served with a foreclosure lawsuit. We have experience helping people find solutions to save their homes, and can help you too. Contact one of our trained debt management professionals today to find out your next step.
For more information about how to protect yourself from foreclosure, contact us at www.DsouzaLegalGroup.com. We will help by coming up with solutions that fit the facts of your case.