Common Defense in a Foreclosure Case

Posted by on Jun 16, 2016 in Foreclosure | 0 comments

Foreclosure is a terrifying experience for most people. The thought of not having a place to sleep in can be traumatic for the homeowner. According to the website of Hong Law, PLC, while a house is just an economic commodity for financial establishments, it is far more valuable to the owner. Hiring the services of an attorney can help you regain your foreclosed property.

In the United States, foreclosing a home may require the approval of a court before the homeowner is evicted from their homes. This is true in a judicial foreclosure state, where the bank just cannot foreclose a home without court approval. So as the foreclosure will undergo court proceedings, here are some of the common defense that your lawyer will use to fight foreclosure.

Lack of Standing

In this defense, your lawyer will try to prove that the bank is not the proper plaintiff or owner of the foreclosed property. The proof of burden lies on the bank as they need to show that they own or has the promissory note and mortgage. This can prove difficult to a bank as mortgages are usually sold and transferred to other financial institutions.

Improper Delivery of the Summon and Complaint

Most mortgages requires the bank to notify the homeowner that their loan is in default before they file a foreclosure lawsuit. The notice must provide the required action and give the homeowner at least 30 days to comply before initiating foreclosure.

Unclean Hands

Here the homeowner must prove that the foreclosure was a fraud, illegal transaction, or oppressive to them, then this defense can help keep the property from being foreclosed.

The Mortgage Payment Was Not Properly Accounted For

You can prove to the court that the loan provider did not properly credit payments and/or charge the necessary costs in accordance with the law. If you can do so, the court may stop the foreclosure of your property.

The Lending Company Did Not Comply With HUD Requirements

The National Housing Act calls for lenders to advise homeowners of loan counseling options offered by the US Department of Housing and Urban Development. If you are able to prove to court that the lender did not provide such advise, then you can get your property back.

Foreclosure can bring so much distress and grief to homeowners. For this reason, you can make the bank or lending institution liable for their action.

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