7 Defenses to Stop & Avoid Foreclosures.
Foreclosure Defenses you can use: This article is by no means to provide legal advice, nor an attempt to solve your individual situation. You need the help of qualified real estate attorney to stop foreclosure on your home. However by knowing these steps will enable and position you much stronger against a powerful lender who has all the expertise and legal help to foreclose on your home.
Truth in Lending violations
If you purchased or refinanced your property and the paperwork lacked certain truth and lending guidelines you may be entitled to set aside foreclosure proceeding and may claim legal damages from the lender. A forensic audit or analysis of your paper work is important. If the Truth in lending disclosures were in fact inaccurate, the loan is statutorily rescind able. There is stiff requirement for these charges to be accurate within $35.
Failure to provide Notice of cancellation:
If the lender fails to provide correct notice of cancellation at the time of refinancing the loan can be rescinded up to 3 years from the date of signing. Breach of contract or changes to the note occurs and If the lender interferes or changes terms of deed or changes monthly payments or any other violations of the deed or the note you can set aside a foreclosure sale. Many times lenders do things that may be contrary to the terms of your contract. This can be used to offset a foreclosure.
lenders are required by Federal law to provide certain disclosures at the time of loan origination to be fair with borrowers to avoid kickback and unearned fees. If these RESPA(Real Estate Settlement Procedures ACT) occurs the the loan can be rescinded.
This is a defense against the lender if any violations occurs at the time of loan origination Many times, lenders acts create an unconscionable event and the borrower is entitled to damages and further claims.
Right to foreclose
This legal defense is used to stop foreclosures and the lenders ability to do so if the foreclosing lender may or may not be the owner of the note. Defense attorneys require the lender to produce a copy of the original note. If no such copy exists than the foreclosing lender may or may not be allowed to foreclose.
Fair Credit Reporting violations
Fair credit reporting act regulates creditors reporting vital credit information about borrowers.Lenders are required to report accurate information to the credit bureaus. Violation of this act can also be used in conjunction with other foreclosure defenses in stopping foreclosure and punitive damages can be asked against the lender.
A foreclosure is a serious event and time is of essence. You should always seek immediate help via a qualified real estate attorney in determining the best course of action and defenses.