Fighting foreclosure can buy you time to pursue alternatives to foreclosure, and in some cases it can put a stop to the foreclosure entirely. There are many reasons why it may be appropriate to fight foreclosure. If you have received or believe that you will receive a foreclosure notice, you should seek the advice of a local foreclosure attorney right away. After reviewing all of the facts in your case, your attorney will determine if you have grounds to fight foreclosure.
Predatory lending is mortgage fraud. It happens when lenders use unfair, abusive, or deceptive practices to cheat borrowers out of money. In some cases, predatory lenders intentionally create situations in which it is difficult or impossible for borrowers to stay current on payments so that they can profit from foreclosing on the property. There are many types of mortgage fraud. Common scenarios include lenders who convince borrowers that they can afford to pay more than they actually can or schemes that involve much higher interest rates than borrowers expect.
Mistakes Made by the Lender
Lenders and mortgage servicers can and do make mistakes. If a serious mistake was made, and you can prove it, the court may stop the foreclosure altogether. Examples of mistakes include:
- Improper recording or application of your payments causing it to appear that you were not paying when you actually were
- Charging late fees and inspection fees when you were not late on payments
- Charging other improper fees
- Buying and charging you for insurance when you have purchased insurance on your own in accordance with your agreement
- Failing to pay your property taxes when required and causing you to incur fees as a result
- Overstating the amount you must pay to reinstate the loan
Rules of Foreclosure Were Not Followed
Each state has very specific rules of procedure for foreclosure. These include timelines and methods of providing notice and more. If the lender failed to follow the rules, the court can stop the foreclosure process and make them start over. This does not mean that the lender cannot foreclose at all, but it can significantly delay the process buying you time to explore alternatives to foreclosure and possibly take steps that will ultimately prevent it.
An experienced foreclosure defense attorney knows what to look for and can spot defenses that you may not be aware of. To learn more about foreclosure defense and to find a foreclosure attorney who can help you, please browse our directory.