Can You Fight Against A Foreclosure?
Can You Fight Against A Foreclosure?
Facing a foreclosure is one of the most troubling processes that one might have to go through. No matter what the circumstances, a foreclosure can be quite challenging to deal with. However, a foreclosure is not the end of the world. Under certain conditions, a foreclosure defense can be mounted.
Before you think of initiating a foreclosure defense however, there are a few things that have to be considered. These include the basics knowledge about foreclosures and the circumstances it can be fought. Here is everything that you might need to know.
What is a Foreclosure?
A foreclosure is the process that a lender initiates when an individual fails to pay back an amount that they owe. The recovery usually involves sale of assets that have been placed as collateral. Foreclosures are usually ugly as the bank or any other lending institution seizes the property of the person who has defaulted on their loan payments. In the US, almost 250,000 people enter a foreclosure every three months.
There are a number of situations where you can legally fight a foreclosure. Some of these are listed below but the options are by no means limited to these. When considering a Foreclosure Defense, it is important to consult an attorney to get specific guidance on the respective case.
Violations on Part of the Lender
In a loan or mortgage agreement, there are certain rules and regulations that apply to both lender and the party receiving the loan. Once the document is signed, it becomes legally binding on both parties. A lender can also be in violation of certain state procedures when initiating a foreclosure or during the course of the mortgage. Such cases can entitle you to file a lawsuit against them. Some examples of violation on part of the lender might include:
- Failing to record the notice in the local lands office
- Not serving you a copy of complaint to foreclosure, in case of a judicial foreclosure proceeding etc.
You Have an Equity Stake in the House
Another situation in which you can fight a foreclosure is when you have equity vested in the house. In case a home is worth at least the amount that you owe on it, you can easily sell it and get out of the debt. This condition also applies if you can continue to afford the payments on your house. Ideally, you need to have both equity and the ability to carry on making monthly mortgage payments in order to start a foreclosure defense. It is a good idea to talk to your attorney before initiating any actions in this regard.
Things to Know When Fighting a Foreclosure
There are certain things that you have to bear in mind when putting up a foreclosure defense. These include drafting a budget and fulfilling documentary requirements in consultation with a foreclosure attorney. It is quite troubling to be in the center of such a process and it is natural to be stressed but in the midst of all the chaos there are a number of mistakes that might be made. These compromise your case further, landing you in further trouble.
In order to avoid a nightmare, it is important to be aware of the basic things surrounding the entire procedure. This helps you in getting prepared for what might come your way.
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