Recovering from Financial Ruin

Facing Foreclosure? How A Foreclosure Attorney May Help Save Your House

21 March 2019 by Veeti Lepisto

Although foreclosure rates may not be as high as they have previously been, nearly one in every 2,500 homeowners was facing some stage of foreclosure proceedings in February 2019. While most homeowners sign a mortgage agreement believing that they will always be able to make the payments, unforeseen circumstances can lead to default. Sometimes, those circumstances aren't even your fault. If you are facing the potential for foreclosure, it is in your best interest to talk with a foreclosure attorney right away. Here are some of the things he or she will investigate to try to stop your foreclosure and save your home.

Were You Pushed Into Signing Your Loan?

One way to stop a foreclosure proceeding is to prove that you were the victim of undue influence, which means that you were heavily and wrongly influenced into signing for the mortgage. Whether it was due to a last-minute change in terms that you weren't okay with but were told you had to sign anyway or due to a lender discouraging you from seeking your own representation during the mortgage negotiations, if your attorney can prove that you were unduly influenced, the courts may invalidate your foreclosure.

Did The Lender Violate The Foreclosure Process?

In every state, there are strict laws regarding notifications of default and the actions a lender must take before they can legally file for foreclosure. If you were not notified of the impending foreclosure or given the opportunity to make the mortgage current, your attorney may be able to have the foreclosure halted due to the procedural failure on the part of your mortgage company. When using this type of defense, the burden of proof will fall on your lienholder to show that they did, in fact, follow the procedure. If they cannot prove this beyond a reasonable doubt, you may be able to keep your home.

Were You A Victim Of Predatory Lending?

Even some of the largest banks in the country have faced lawsuits for what is known as predatory lending. The term, though it sounds simple, actually encompasses many different types of common and problematic lending practices.

For example, charging markedly higher interest rates to certain demographics over others, leading borrowers to believe that they have to pay exorbitant rates for mortgage insurance without presenting them with other options, and lending to borrowers who clearly won't have the means to make payments are all considered predatory lending practices.

Many banks that offer loans like these do so because they know that the buyer will default, and the bank will then be able to take possession of the property for much less than market value, giving them the option to turn a profit when they sell it as a bank-owned property later.

Your attorney will review your mortgage documents in detail to look for any indications of predatory lending. You may not only be able to stop your foreclosure but also obtain some other financial relief in terms of a loan reduction if this is the case for you.

Blatant Lending Errors

Finally, your attorney will ask you detailed questions about the process of obtaining your loan, the communications that have occurred, and your understanding of those communications. If your lender made any blatant errors in the process of underwriting, offering, or closing on your loan, it may protect you from foreclosure.

Whether your lender failed to obtain informed consent of the mortgage application from you, misrepresented the facts of your loan, or otherwise legally did not hold up their end of the mortgage contract, you may be able to prevent your foreclosure on the grounds that the lender made errors in the process and may have invalidated your mortgage contract as a result.

For more information, reach out to a law firm that offers foreclosure attorney services.

Share