In a previous post, we discussed the statute-based defense strategies against home foreclosure. Today, we examine some of the process-oriented defense strategies available to homeowners in this situation.
Not all consumer protection law-based strategies depend on proving that the lender committed fraud or other abuse. There are also defenses based on procedural errors.
For example, there are special requirements for loans insured by the Federal Housing Administration (FHA). When the borrower falls behind on payments under a loan insured by the FHA, lenders must mail them a counseling notice within 45 days of the default. The lender must also have a meeting with the borrower before they have missed three payments, and must offer counseling services.
When a lender serves a borrower with a complaint in the foreclosure process, they must attach a note and a copy of the mortgage document to the complaint. If they fail to do so, the borrower can ask the court to strike the complaint. It is unlikely that this move will stop the foreclosure altogether, but it can slow it down. Often, the goal in foreclosure defense is to slow down the process in order to give the borrower time to reach a compromise.
Do not try to do this alone
As a homeowner, it can frightening to be faced with foreclosure. To lenders, the process may be just about money, but to you, it’s about fighting to keep your home. If you are worried about foreclosure, you may want to seek out help from an experienced lawyer to learn about your options and plan a strategy to fight for your home.