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Prior to the Great Recession and foreclosure crisis, there were very few foreclosure defenses that were successful. The success of these foreclosure defenses in the recent past has risen due to the unearthing of more evidence that shows the errors made by the mortgage servicing industry. Courts are now, more than ever sympathizing with homeowners.
Homeowners and their attorneys are now taking advantage of this shift in judicial attitude and are challenging courts in several different ways. Some of these foreclosure defenses include;
The Foreclosing Bank Didn’t Follow State Procedures
Every state has different foreclosure procedures that are specific to only them. If, for instance, the foreclosing bank has not followed the correct procedure in a foreclosure action, you can challenge the foreclosure. If the foreclosure challenge is successful, the bank will be required by the court to start the process afresh.
The Foreclosing Party Lacks “Standing”
At times, the banks will have trouble proving that they are the loan holders due to the fact that they cannot provide the promissory note to prove ownership of the loan. In such a case, the foreclosing party does not have ‘standing’ to foreclosure.
Even in cases where the promissory note is available, an assignment may be missing or endorsements are not in order.
These days, it has become quite difficult to win a case based on a standing argument due to the fact that many investors and banks are now ensuring that they address any gaps in the paperwork before initiating a foreclosure.
Errors by The Mortgage Servicer
Sometimes, there are serious errors made by mortgage servicers when dealing with borrowers. You can challenge a foreclosure based on any of the following mistakes;
- They may have overstated the amount to be paid to reinstate your mortgage
- They may have imposed excessive fees that are not authorized in the mortgage contract.
- Dual-tracking- this is the act of pursuing foreclosure and at the same time a deed in lieu of foreclosure, or a short sale is pending
- Payments are credited to the wrong party
You are an Active Service Member
The Servicemembers Civil Relief Act (SCRA) will provide those in active military duty with certain foreclosure protections. This is especially true if the member of the military gets the mortgage after going on active duty.
Statute of Limitations
If quite an amount of time has passed between the moment you stop making payments on your mortgage and the time the lender initiates a foreclosure, this may violate the statute of limitations. In instances where this happens, the statute of limitations is a very strong defense against foreclosure.
Foreclosures continue to pose a significant problem; however, your Florida Foreclosure Defense Lawyer gets how stressful this process can be, and we are here to assist.
Here are questions for our clients: have you been served with a foreclosure yet, what stage have you reached in the process?, is your home important to you, and do you want to keep it, are you currently working hand in hand with the bank and lastly Do you want to obtain a payment that is fair and reasonable?
Have You Received a Breach Letter?
A homeowner, upon failure to make payments on their mortgage, will receive a letter. Once they have received it and still do not make payments within 30 days, the lender can proceed with the foreclosure. Thus, the process begins. Do not ignore this letter. You can speak to a Foreclosure defense lawyer to ensure that you understand all the legal implications of the process.
A Foreclosure Defense Lawyer Can Help
In Florida, lenders are required to file a lawsuit in order to start the process. If a homeowner does not respond, the lender can plead with the court to fast-track the process.
This option is available if the borrower has no defenses or the process is uncontested. A Judge can speed proceedings and rule that the lender can sell the property in no less than 35 days.
Foreclosure Attorney Near Me
We have acquired a vast amount of experience handling cases of foreclosure. We will develop a tactic that fits you and help you in the fight for your home.