Receiving a notice that your house is being foreclosed upon can leave you in a state of shock. If you're trying to think of ways to fight back, it's worth asking how a foreclosure attorney, such as James Alan Poe, P.A., would approach the situation.
Were Payments Made?
One of the simplest arguments to make in the foreclosure process is that all expected payments were made. Yes, companies do make mistakes, and some aren't very good about trying to accommodate customers who say they haven't fallen behind. Before you sit down with a foreclosure attorney to discuss these kinds of circumstances, try to gather all the information you can. This should include obtaining and making copies of contracts, bills, receipts, and processed checks.
Producing a Clear Title
Another simple way to contest a mortgage is to force the lender in question to produce proof that they do in fact hold the title. Especially during the mortgage crisis during the Great Recession, it was common for lenders to sell mortgages to investment banks. These institutions often bundled and resold mortgages multiple times, and some failed to properly transfer the accompanying titles. At a minimum, you have the right to demand that a lender prove they still own your mortgage before they take any action against you.
The Foreclosure Is Legitimate
If you have the means to pay off the lender's foreclosure costs, you may still be able to get back on a regular schedule. First, you should verify that you have the financial resources required to do this. Be careful taking on other types of debt, such as short-term loans, unless you're confident that you will make enough money in the near future to pay both the foreclosure and the loan.
A Loan Modification
One solution worth proposing is a modification of the mortgage on the property. This requires negotiating with the bank that holds the title. Your foreclosure attorney can propose a new loan that includes a lower monthly payment.
It is possible to pursue a Chapter 13 bankruptcy, one where the lender takes a partial loss on the loan, in order to hold off a foreclosure. This is a potential solution that many foreclosure attorneys recommend when there simply isn't enough money to get back on the original payment schedule or when the bank refuses to negotiate a loan modification. Some lenders will also become more motivated to negotiate once bankruptcy is brought up.