Foreclosure: The Homeowner Can Win This Battle
Millions of Americans have lost or are in the process of losing their homes. You can fight back!
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Tougher lending requirements and pre-payment penalties make it hard for troubled borrowers to refinance with cheaper fixed-rate loans. And many of these borrowers now find that their properties have lost value and cannot be sold for enough to pay off a mortgage taken out two or three years ago.The result of all this is that more and more Americans are losing their homes
So what can be done to stop the climbing rates of foreclosures from effecting you and your security.
Your behind on your mortgage payment and you are worried about losing your home. Is there anything you can do about it ! well actually there is alot you can do
First remember that It will take approximately 4 months for foreclosure to be filed. Most lending institutes will work with you to avoid foreclosure in this crumbling housing market. Your first option is to talk to your lender and find out what assistance they may have to offer you. Many lenders are required by their insurers to work with troubled borrowers. If that doesn’t help, you do have other options.
There are several legal ways to help you fight foreclosure once the lender has filed with the court.
Real Party In Interest: “produce the note”
By Law the mortgage holder has to produce the original loan documents to prove that you have a financial obligation to them. The mortgage company suing you isn’t the same one that loaned you the money in the first place. They sell your loan shortly after you sign the mortgage papers. Theoretically, all the paperwork gets moved with the sale or transfer. But, in reality, many times it does not. And, even if it does get transferred, it may be lost, or may be stashed some where with thousands of others, and will be very difficult to locate. here is the way to go about this process. First you have to mail a legal request to the lender and their attorney to “produce the note”, then file this request with the county. After that you wait 30 days and file a “motion to compel” with the court asking the judge to order the bank to come up with the original promissory note. the Lender then has 30 days to produce it. If you can get this done before the judgment of foreclosure, it may not make it to foreclosure. There is a website that give you more information about this process and has has template forms you can fill in: http://www.consumerwarningnetwork.com/2008/06/19/produce-the-note-how-to/
Breach of Contract:
Many times the lender will do things that are unfair and/or unjustified shortly before starting the foreclosure process. Just as you have an obligation to pay the mortgage, the lender has a responsibility not to interfere with your ability to do so – like force placing insurance making the payments substantially more expensive than they should have been. This shows a lack of ” good faith” on the part of the lender
Failure to Establish Conditions Precedent
The foreclosure papers require very specific information varying state by state. Many times they do not meet the requirements.Thus the foreclosure cannot proceed. They have to start over at square one.This gives you more time to regain your financial footing so you can pay the amount in arrears
Bankruptcy
Although many folks used to think bankruptcy was the only solution to foreclosure, as you can see, it is only one of several. What many homeowners don’t realize is that Chapter thirteen Bankruptcy permits property owners to stop foreclosure proceedings if they are behind on their home loan payments. Chapter thirteen is particularly designed to permit the patron to pay the delinquency in equal monthly payments for as long a period of time as sixty months ( 5 years ). The mortgage lender has little choice but to accept this, as long as all qualifications of this chapter are met
for more options to help you avoid foreclosure, you can find help at little or no cost from a housing counselor approved by the U.S. Department of Housing and Urban Development that are listed at the agency’s Web site, or by calling (800) 569-4287
Once the foreclosure starts, you get only 30 days to file papers with the court. Your chances to fight back are limited after that clock runs down. The sooner you get started the better your chances are of winning the foreclosure battle
to find out more about foreclosure laws in your state go to: http://foreclosurelaw.org/
Source:
Fight Foreclosure! by David Petrivich
Source
3 Comments
Very helpful article. This may actually help a lot of people.
you have such helpful information for those facing foreclosure. I am sure many people will use it to their full advantage. you have a thumbs up here.
A great and very informative article about foreclosure topic..very helpful indeed. Thanks for sharing:)