Options for foreclosure defense

On Behalf of | May 23, 2023 | Real Estate

Receiving a notice of foreclosure is stressful and emotional, especially when you have been in your home for many years. You might believe that you have no recourse against foreclosure, especially if you do not have the cash to bring the loan current. In fact, short sales are not the only option for avoiding foreclosure.

There are a few other ways to fight your bank’s foreclosure notice.

Inaccurate accounting

If the notice you received from your bank does not match your payment records, there is a chance that the bank inaccurately recorded payments. To claim inaccurate accounting, you need documentation of every payment you made as well as all of the statements that the bank sent you. This may be enough to prove a system error and cancel your foreclosure.

Lack of standing

Your original mortgage lender might sell your mortgage to another lender at some stage in the loan’s lifespan. This new lienholder could file a foreclosure action as a result of late payments. Unfortunately, they may not have the original documents and enough paperwork to prove their financial interest. If so, you can contest the foreclosure with an argument that they lack the standing to bring the suit.

Insufficient notice

Your mortgage lender has strict requirements for default notifications before they can file a foreclosure action. If the bank fails to meet those requirements, you may have grounds to fight the foreclosure.

A foreclosure action does not guarantee that you lose your home. Proactive defense against foreclosure can help.