When a lender decides to foreclose, you can still fight back in order to stall or stop the process. On further examination, it is common to find the lender has no right to order a foreclosure. This means that you may be able to continue living in your home, and it is not always necessary to seek out debt relief programs.
The current mortgage system means an investor has control over your mortgage. Foreclosures are common with this system as it makes more sense financially to order a foreclosure than to make modifications to a mortgage; the servicer makes money when initiating a foreclosure but loses through a modification. Meanwhile, the homeowner often falls deeper into debt and must seek out debt relief programs.
In some states, the foreclosure process must be carried out in court where lenders must prove their right to a foreclosure. Factors that can be questioned include the proof of ownership of a mortgage, the legal standing to file for foreclosure, and, if the loan has been sold at any time, evidence of a proper transfer. Any errors, such as the lack of official paperwork, may prevent the foreclosure from taking place.
Foreclosure defense is not like other debt relief programs. In these cases, the right of the lender to order a foreclosure is called into question. Failure to produce correct documents or papers are found having been “robo-signed” (when hundreds are signed by the same person without being reviewed) can result in homeowners being allowed to live at their properties for months or even years without being required by law to pay any mortgage.
Many people are turning to debt relief programs to help them when their lenders actually had no right to a foreclosure. It is best to seek the advice of an attorney or help through debt relief programs. Errors made on the lender’s behalf are very common and may even remove the bank’s right for a foreclosure.