How to Protect Your Property from Foreclosure: Types of Foreclosure Defenses
Are you facing the threat of foreclosure or already going through the proceedings of one? Your best bet would be to consult an experienced foreclosure defense lawyer to find out your options to save your home.If a foreclosure is upon you, you’ll want to do everything in your power to stop it. This article discusses different types of foreclosure defenses your attorney might recommend. Here is a list of the Most Common Foreclosure Defenses:
- Bank Didn’t Follow State Procedures Accurately:
The foreclosure process is complicated and timeconsuming. Oftentimes, this complexity leads to errors. If the bank or other lender didn’t follow your state’s foreclosure procedures accurately, you might have a good case for stopping the foreclosure.
- Mortgage Services Made Mistakes or Errors:
It is possible for mortgage services to make mistakes when handling homeowners’ accounts. Here are some of the most common mistakes to look out for:
- Dual tracking, which means pursuing foreclosure at the same time a different loan modification is pending
- Sending your mortgage payments to the wrong party
- Overstating the amount of money you owe for your mortgage payments
- Imposing excessive fees for late payments that weren’t stipulated in the mortgage contract
If you think the mortgage servicer made any of these or other mistakes, contact an attorney right away to help you stop the foreclosure process. This is one of the best options available to help you save your home.
- You’re on Active Duty:
The Servicemembers Civil Relief Act (SCRA) provides special protection to people who are on active duty. The main protection in this context is: In the event you took out your mortgage prior to being on active duty, the foreclosure proceedings must occur in court, even if that is not the norm (unless the lender gets a waiver signed by you).This prevents lenders from being able to foreclose your home without a proper court proceeding. It allows you to provide a defense with the help of an experienced foreclosure attorney.
- The Foreclosing Party Lacks “Standing”
The “foreclosing party” is the party who owns the loan. If the lender can’t prove that they own the loan, that means they lack “standing”. In such a scenario, they can’t foreclose on the home. In reality, this happens a lot, because banks often bundle your loan with other loans and sell them to other banks or investors. This can make it difficult to track exactly who owns the loan for your house.
- The Statute of Limitations Has Passed
The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed since they stopped making their mortgage payments. It’s true, some mortgages or missed payments do slip through the cracks.
Additional Foreclosure Defenses
Here are some less common foreclosure defense options:
- There is a Loan Modification: You’re already making payments on a loan modification, which means the foreclosure should not have been initiated.
- Possible Violations by the Lender:If you have a VA, USDA, or FHA loan and believe the lender violated federal regulations.
- You never received a Notice before foreclosure: This rarely happens but is possible – You never received a breach of contract letter from the lender informing you of the violation of your mortgage contract or deed of trust.
Whatever grounds you find for your Foreclosure Defense, it’s best to let a good foreclosure defense lawyer represent your best interests, as their years of experience goes a long way in making airtight cases for defense.
DSOUZA & STRACHAN LAWGROUP has a team of experienced Foreclosure Defense Attorneys with a high success rate. Call us today for a free consultation.