Foreclosure Defense Strategies We Can Pursue
Every foreclosure situation is going to be unique to individual circumstances. Even so, years of practicing foreclosure defense law have equipped our team at Cremeens Law Group PLLC to identify several successful strategies.
For example, a common legal technique is to press the bank or lending company to prove it has standing to foreclose your mortgage, or, in layman’s terms, the legal ability to enforce your defaulted loan by way of a foreclosure lawsuit. This might seem obvious, but to many people’s surprise, banks can have a tough time proving standing. In many cases, a mortgage loan is transferred, sold, or reassigned, sometimes multiple times across several parties. In order to carry out a foreclosure lawsuit, the bank in question has to prove it actually “owns” the mortgage, which it sometimes cannot manage.
For many mortgages, banks are required to take certain legal steps before filing a foreclosure lawsuit against you. These procedures are called “conditions precedent,” and many lending companies fail to properly carry them out. Proving compliance failure will prompt many courts to dismiss foreclosure actions outright.
Banks and lending companies are required to keep the original “note,” or contract, when you originally signed the mortgage. Due to disorganization, error, or other reasons, banks tend to misplace or lose these contracts many years after the fact. It is significantly more challenging for a bank to pursue foreclosure defense where they’ve lost the note, and, consequently, many times they will elect to settle with terms favorable to you versus attempt to litigate against an experienced foreclosure lawyer.
Sometimes, lending companies will erroneously overcharge on a new mortgage document, claiming you owe more than you what you feel you originally agreed to. Banks often hedge that you will simply pay whatever a document specifies and not challenge the particulars of the amount, hiding extra charges through inflated interest rates, processing fees, or taxes. This can contribute to your falling behind on your bills, but the discovery of inaccurate charges can give you leverage in a foreclosure defense case. Our legal team can review your billing to make sure your charges are consistent with your original mortgage agreement and, should we find irregularities, we can challenge your bank for an explanation.
There may be a scenario where you are current on your mortgage payments but are potentially anticipating issues down the road, perhaps due to a looming financial difficulty like the knowledge you are being temporarily laid off. You might proactively reach out to your banking institution in a good faith effort to modify or restructure your loan. While some banks will be happy to work out a compromise, others may engage in a dishonest practice called “induced default.” They may refuse to renegotiate or work with you because your mortgage is current, and therefore there is no issue to address. It is true that some loan modification and other support programs are reserved for those who are behind on their mortgage, but what the bank is effectively doing is encouraging you to intentionally fall behind on your payments. Only at that point, they claim, will they be willing to discuss restructuring your loan, but many have no intention of doing so and are instead trying to trap you in default. This practice is unlawful, and proving “induced default” in foreclosure court can often lead to judges dismissing foreclosure suits.
Get the Foreclosure Defense You Need
Banking institutions are often not expecting a fight in a foreclosure lawsuit. The mere act of hiring experienced legal representatives, like our Tampa foreclosure lawyers, can compel banks to consider settling in terms favorable to you, especially if they know there are weaknesses in their case. Even if a lending institution is committed to pursuing foreclosure, we will take every step necessary to protect your home and exercise every legal tool to make sure your rights are protected. At Cremeens Law Group PLLC, we are committed to diminishing the negative impacts of foreclosure, no matter the ultimate result.