There are ways to stop a foreclosure. The first step is to get advice from a legal profession and to do so early in the process – way before the auction date is set.
In some cases, the homeowner may have legal defenses to foreclosure under federal or state law, or to the lender’s motion in bankruptcy to remove the house from court protection.
- Does the lender have all the proper documents to prove he is legally entitled to foreclose? (This happens frequently when the loan has been “securitized” and sold -- and re-sold-- to investors so many times the legal “paper trail” is defective.)
- Is the lender’s calculation of the mortgage arrears, costs, and fees correct? (Lender bookkeeping is often shoddy and the amounts allegedly owed may be in error.)
- Has the lender taken all the steps required by the state’s foreclosure laws? (This is absolutely necessary to proceed.)
- Do you have defenses under important federal law such as the Truth in Lending Act (TILA) or the Real Estate Settlement Procedures Act (RESPA)? (Truth in Lending Act violations may be a defense to a mortgage foreclosure. If there is a violation, you may be able to void the mortgage and apply all interest payments you have made against loan principal. You may also be able to recover money damages.)
Call the office. Set up an appointment and let’s discuss the options.