One of the most difficult decisions to make as a homeowner is whether or not to fight an illegal foreclosure. When faced with the loss of your home, you probably think that there is nothing you can do and that acceptance is out of the question. Unfortunately, many homeowners in this situation do not realize that they have legal options available to them. In this article, I will discuss the two most common legal actions homeowners can take to stop bank foreclosure and to gain relief from the devastating effects of being foreclosed on.
Illegal Foreclosure Lawsuit
First, a homeowner should consider filing a foreclosure lawsuit against the lender of the property. Depending upon the jurisdiction, this can be done either in court or by filing a lawsuit with the county clerk. If a lawsuit is filed, it will be examined by a judge and the evidence gathered can ultimately help the homeowner win their foreclosure lawsuit. The judge will review the case and determine if the lending entity has a clear legal duty to undertake corrective measures to ensure the foreclosure does not occur again.
In some cases, this decision may be opposed by the lender.
However, in most jurisdictions, the lender must stand behind their obligation to undertake remedial measures. In addition, the lender typically has a legal duty to reimburse the homeowner for any costs incurred due to the foreclosure. Finally, courts may consider the amount of hardship the hardship is causing the homeowner to find a solution to the problem. In doing so, the courts are not limited to only one remedy in order to prevent foreclosure.
In order to avoid having to go to court, it is advisable for the homeowner to work out an amicable solution with the lender as quickly as possible.
Remember, the lender does not want the house! Therefore, the sooner you can get a hold of the situation, the better. Some quick solutions to save your home may include lowering the interest rate on your mortgage by a large amount, forgiving the balance of the remaining loan, and/or rescheduling the date of your loan repayment. If you are in jeopardy of losing your home, you have no other option than to work with your lender and devise an acceptable solution.
Once you have worked out a payment arrangement with your lender, you may wish to attempt negotiating a workout with your attorney.
An attorney may be able to help you overcome a defense at trial that might hold up the trial date. It is also possible that your attorney could be successful in having the foreclosure case dismissed. The loss mitigation department of your lender may even be able to negotiate an out of court settlement with the homeowner.
The bottom line is that if you feel that you have been a victim of illegal foreclosure activity, you are urged to seek legal counsel in order to obtain the best results.
Additionally, if you are unable to reach an agreeable resolution with your lender, you should consider filing a complaint in federal court in an effort to force the process to proceed legally. There is a long list of potential outcomes when it comes to filing a lawsuit of this nature. Although every lawsuit is unique, there are a few that generally apply to illegal activity. Regardless of the result, it is important to remember that an illegal foreclosure can have negative consequences for you and your family for many years to come.