How To Challenge A Foreclosure And Expose A Dishonest Lender
The effects of foreclosures often go unnoticed in a community. Of course, it affects the homeowners, but it also causes home values to depreciate. Decreased home values lead to more forecloses, which results in vacant neighborhoods.
High foreclosure rates occur because banks want to close out bad loans and resell the property to people who can afford it. Read on to find out how to challenge a foreclosure and expose a dishonest lender.
File A Lawsuit
To escalate a legal foreclosure defense, you have to bring the case before a judge. The two common types of foreclosures are nonjudicial and judicial. A nonjudicial foreclosure takes place outside of court. On the other hand, a judicial foreclosure is carried out through the court system. You have to file a lawsuit to get your defense heard by a judge. To put your foreclosure on hold, you have to prove that the lender did something illegal.
Make The Bank Substantiate The Chains Of The Title For The Mortgage
One of the ways of proving a foreclosure defense is by making the bank substantiate the chains of title. If any link in the chain is questionable, then it nullifies a lender's ability to make a claim on a property.
A mortgage is a contract that transfers the interest in the property. It is not a promise to pay the debt, but gives the lender the right to take the property if the contract is breached. A promissory note is an asset to the lender and is held on the books. It specifies how much the borrower must pay and for how long.
A perfection of chain of title is what makes a mortgage valid. The lender has to show a clear unambiguous record of ownership from the date of creation. If you have lapses in the chain of title, then the mortgage becomes invalid.
Check Public Records
A mortgage is public record and must be recorded in your county office. Every time a promissory note is sold to another party. The note must have the signature of the new owner. This information is recorded at your county office with every new transaction.
In the past, courts tend to favor the lender. However, evidence is shining the spotlight on the many errors made in the mortgage industry. For these reasons, the legal system has shifted their sympathies to the homeowners. If you want to challenge your foreclosure, then you should schedule an appointment with an experienced foreclosure defense attorney.