Having to deal with a foreclosure can be immensely challenging and stressful for anyone. However, you might be able to use certain legal defenses depending on the specific circumstances of your impending foreclosure. While the potential defenses vary from state to state, some of the most common defenses to foreclosure include the following:
All mortgage agreements are subject to legal principles and rules, so if your lender has made a mistake that is against these rules, it might impact the result of the foreclosure claim against you.
Mistakes by Mortgage Servicers
These companies — mortgage services that actually manages mortgage — accounts often make mistakes when handling borrower accounts. Ask for help from top foreclosure defense attorneys in Salt Lake City, especially from Law Office of Davis & Jones, P.C., and know that you can seek to challenge foreclosure if your mortgage servicer:
- Credited your mortgage payments to another party;
- Imposed hefty fees that are not included in your mortgage contract;
- Conducted dual-tracking, which basically involves seeking foreclosure while you’re currently pursuing a loan modification or a foreclosure avoidance strategy such as a deed in lieu of foreclosure or short sale; or
- Significantly overstated the amount you need to pay off to have your mortgage reinstated.
This is considered a statutory violation and is illegal. Basically, this is any lending practice that forces borrowers to agree to abusive or unfair loan terms.
Undue Influence or Fraud
No one should sign mortgage documents under conditions of undue influence or fraud. In the event that that you sign your mortgage agreement under duress or the threat of force or violence, the agreement can be nullified.
Each state has specific laws regarding the foreclosure process, so if you find that your lender has violated any of these laws, you can use the violation as a defense. For example, if your state requires that your lender sends you a notice of default in a minimum of 30 days prior to starting the foreclosure process but your lender failed to do so, the court can stop the foreclosure process, giving you more time to plan your next move.
Promissory Notice Issues
The only person who can claim foreclosure is your mortgage loan’s original owner. Once the foreclosure process has started, your mortgage owner must provide proof of the original promissory note indicating your payments. Otherwise, the foreclosure process will be postponed until your mortgage owner can furnish the promissory note.
You’re an Active Service Member
The Service members Civil Relief Act (SCRA) grants individuals like you certain protections. For instance, your foreclosure should occur in court (unless you waived your right to this protection in your mortgage agreement) in the event that you take out your home loan prior to being assigned to active duty.
Take note that most of these defenses won’t serve to completely stop the foreclosure process, only restart or delay the entire process. However, they can help give you more time to plan what you should do next, which can, in turn, prevent the foreclosure from coming through. That said, seek legal help from a local attorney with experience in foreclosure defense to help you obtain the best possible results.