Things To Know About Foreclosure Defenses
If you’re in default of paying back your mortgage loan, your home may be foreclosed by the bank or any lending institution. These companies will take steps to foreclose your property and place it in an auction sale to recover the loan amount. If you don’t know what’s going on, chances are you’ll end up losing your home and more money than you could’ve ever imagined. Luckily, there are instances wherein you can defend yourself and your property from the foreclosure process. These are called the foreclosure defenses.
If you want to protect your property against a foreclosure, here are a few things you need to know about foreclosure defenses:
What Are Foreclosure Defenses?
Foreclosure defenses are often an agreement that can be made between you and the bank. One can be used if you’re facing foreclosure because your financial situation is too hard and you simply can’t make payments on your mortgage anymore. This can help you save your home from foreclosure and it can give you a fighting chance to save your home. If you want to stop foreclosure from happening to you, then, you should read as much as you can about foreclosure defenses.
The following are some examples of foreclosure defenses:
- The foreclosing bank didn’t follow the state procedures.
- The mortgage provider made serious mistakes, such as crediting the payment to a wrong party, imposing excessive fees, and overstating the amount you should pay to reinstate your mortgage.
- The statutes of limitations governing the process of foreclosure has passed.
- The foreclosing party can’t prove that they’re the loan owner.
- You didn’t receive a breach letter informing you of your default payments.
Clearly, there are different foreclosure defenses that are available to you. But, since foreclosure can be a complicated process, you may need the assistance of experienced loan lawyers to help you find the right defense that will work best for your needs.
Other Important Things You Should Know About Foreclosure Defenses
- Foreclosure Defenses Differ From One State To Another
Typically, the laws governing foreclosure vary from one state to another. For instance, you may be required to pay a fixed sum before the bank sells your home, or you may be able to skip that fee and get the house back after foreclosure. The courts will decide what will happen at the time of the sale, as well as what happens in the event that you fail to pay your installments.
If you fall behind and you’re able to catch up by meeting with the court, you may get the house back and avoid foreclosure. But, if you don’t make any payments, then, the court can foreclose your home. This means that even if you’ve done everything possible to avoid foreclosure, you might, still, end up in the foreclosure court. Because of this, it’s important to think about the foreclosure defense you’re going to raise before going to court to assert your claim.
Make sure the defense you use applies to the foreclosure laws of your state to avoid further problems. In short, you should work with a dedicated foreclosure lawyer in your area to explain to you the defenses available to your situation.
- Promissory Notes Play A Crucial Role In Raising Foreclosure Defenses
In foreclosure, the courts will use promissory notes to facilitate the payment of money owed to the property holder and as a means of avoiding foreclosure. If you don’t have enough funds in your bank account and can’t pay your mortgage, you can request the court to issue you a promissory note. The note states that you’re responsible for paying your mortgage, and that it’s held by the mortgage lender. It will specify the amount you owe, your interest rate, the period of time to pay the mortgage, and how the money will be paid. When the foreclosure proceedings come to an end, the lender can sell the note to get what they’re owed.
A lot of homeowners find themselves in situations wherein they have very little money to cover their mortgage. As such, it’s vital that you get in touch with a foreclosure defense lawyer who can work with you to find out the best way to negotiate a sale of the note, as well as where you should go to get financing to make the purchase.
In addition to hiring a good foreclosure attorney, it’s also important that you find a professional who works for a credit union or a non-profit organization to assist you with negotiating and selling the note. These credit unions and non-profit groups typically offer lower rates on mortgages than banks will, and they’re one of the best ways to avoid foreclosure.
Dealing with a foreclosure process can be quite daunting If you don’t know what to do and where to go for help, you may end up losing your property in a snap. This is one reason why foreclosure defenses are there to protect your rights as the homeowner. And, by keeping the information mentioned above in mind, you’ll have a better idea on how to navigate this legal matter properly.
Lastly, it’s best to work with a foreclosure lawyer who can handle your foreclosure defenses for you. However, before you hire a lawyer to handle your foreclosure defenses, you’ll have to make sure that you’re working with someone who specializes in foreclosure defense laws.