Fight to Keep Your Property from Being Foreclosed

Around 4.2 million homeowners in the US lost their homes between 2007 and 2014 due to foreclosure. According to the US Department of Housing and Urban Development, foreclosure is a legal process wherein a creditor or mortgage lender, usually a bank, puts up for sale a loan collateral (a house) in order to recover unpaid mortgages from a borrower. According to the website of Ryan J. Ruehle Attorney at Law, LLC, the process that leads to foreclosure usually starts after three successive months of delinquency in mortgage payment.

Foreclosure has two major types: judicial and non-judicial. In a judicial foreclosure, the mortgagee or creditor is required to file a case in court to start the foreclosure procedure on your property. The several months that it takes for this procedure to be completed, though, somehow works in your favor as this will actually give you the chance to raise a legal defense that may save your property. There are a number of foreclosure defenses that have been resorted to in the past which have helped homeowners save their property. A seasoned foreclosure defense attorney may be able to help you learn which among the following arguments will best work in your case:

Servicemember on active duty.

If your creditor filed a case in court to start foreclosure on your property, you are allowed to write the court to request for a postponement of the foreclosure proceeding. Protection against mortgage foreclosure is just one of the many types of protection provided by the Servicemembers Civil Relief Act (SCRA), formerly called the Soldiers’ and Sailors’ Civil Relief Act (SSCRA),
for members of the military entering active duty.

Unconscionable (unacceptable) mortgage term.

This happens when a creditor/lender takes advantage of, misguides and deceives a borrower by designing a mortgage loan contract that is actually intended to make mortgage payment impossible, giving it the opportunity to seize and foreclose upon your property.

State procedures were not observed by foreclosing party:

In a foreclosure procedure there are steps that the foreclosing party needs to observe, such as serving the loaner a notice of default and giving the borrower 30 days to make a payment after the notice of default has been issued. Failure to observe any of the steps required in the foreclosure procedure gives the loaned the legal right to defending against such foreclosure.

Foreclosing party cannot prove ownership of mortgage:

There are times when the foreclosing party is not able to present ownership of mortgage. This is a common case wherein a mortgage contract has been purchased by different companies, so that ownership of the contract has passed from one owner to another.

Mistakes committed by the Mortgage Servicer:

There have been times when a case (that will start foreclosure proceedings) was filed in court by a lender, only to find out that the bases for the foreclosure were actually mistakes committed by the mortgage servicer. These mistakes include:

  • The error of crediting mortgage payment under another loaner’s name
  • Imposing very high fees or collecting fees not approved by you or by the creditor
  • Declaring a mortgage amount that is much higher than what you really are supposed to pay

Though the possibility of losing your property may be imminent every homeowner has a right to foreclosure defense.