Is it Possible to Defend Against Home Foreclosure?
As the rate of foreclosures has grown in the last few years, so has the rate of successful foreclosure defense. In the past, it was almost impossible for homeowners to challenge the banks and lenders foreclosing on their houses, but now more and more are fighting back and winning.
Although the easiest way to prevent a foreclosure on your home is simply to modify your mortgage by asking your lender to renegotiate your terms and reduce either your principal, monthly payment, interest rate or late fees and penalties, many mortgages are actually lent with a fraudulent intent. For this reason, courts have become more sympathetic to homeowners dealing with the threat of foreclosure. Attorneys now have more opportunities to challenge foreclosure actions by raising the following defenses:
Unconscionable lending practices
If the terms of your mortgage or the lending circumstances are seriously unfair (if, for example, there is a language barrier) or even illegal, your attorney can claim unconscionability under the equity branch of law.
Military protection
If a foreclosure action is taken while you’re on active duty, you can request a postponement from the court. And if you took out a mortgage before your active duty began, your foreclosure proceedings have to be carried out in court for your protection.
Failure to follow procedures
State law requires that foreclosing parties follow certain procedures regarding accuracy of information, serving notices of default and other aspects of foreclosure actions. If these procedures are violated, the court may order the foreclosing party to start the process over. Additionally, lenders and banks contract mortgage servicers to enforce the terms of your mortgage and receive and disburse payments, and studies show that these mortgage servicers often make mistakes like false delinquencies and inflating your mortgage reinstatement amount. If this happens, your foreclosure action may not be valid.
These are just some of the challenges attorneys have successfully raised against foreclosure actions. If you are threatened with a foreclosure, contact a Pennsylvania bankruptcy attorney right away.
Contact us at Harold Shepley & Associates at 1-866-284-7062 or visit us at shepleylaw.com.
May 6, 2015 Posted in Foreclosure Tagged fighting a foreclosure, foreclosure defense, military protection for foreclosure Leave a comment
