Foreclosure Defense Strategies

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Real Estate AttorneyForeclosure can happen because of an inability by an owner to repay mortgage debts and loans on time. Because foreclosures can have a negative effect on the credit score of a homeowner, many seek foreclosure defense to get extra time to repay their loans or get loan modifications to stop a foreclosure. If you are sure foreclosure is likely, you should seek a skilled foreclosure and real estate attorney to help you present a solid defense.

Short Sales

Short sales can be used to increase the financial position of a debtor. Under a short sale, the property is sold and the lender or mortgage company receives all proceeds. It is likely a short sale will help cover the costs of the debts, ensuring no deficiencies are sought. Short sales are also less costly and easier to manage – for both the mortgage lender and homeowners. It can also be the first step towards rebuilding a better credit score and financial health. Many lenders agree to a short sale because a foreclosure will result in depressed home prices across the neighborhood, making it more difficult to recover debts.

Chain of Title

The chain of title provides for the perfection of the deed of trust and documentation of a property. Recently, the frequent buying and selling of property have made perfection costly and time-consuming for mortgage lenders and banks. When a foreclosure is highly likely to occur and if the foreclosure was started by Mortgage Electronic Registration System (MERS), the court can dismiss the claim based upon the precedent that MERS has no financial stake in the foreclosure. As a result, it provides a proven way for foreclosure defense as the perfection of deed is difficult to achieve.

Use of Promissory Notes

As it is hard to prove the perfection of a deed because it can be part of a chain of securitization, promissory notes can be used to perfect the deed. However, the promissory notes themselves are left unendorsed, making it difficult to associate it for foreclosure. A foreclosure defense attorney can prove if a bank has left the notes unendorsed, or forged notary signatures to make the notes look legal. Unauthentic documents can be used to stop foreclosure proceedings.

Seek party of Interest

Securitization has made it more difficult to identify the party of interest when a foreclosure is imitated. Because many banks and mortgage lenders buy mortgage-backed securities as part of a bundled collateralized debt obligation (CDO), they find it difficult to perfect the chain of title, and in some cases, the lender might have already gotten paid. A securitization audit can be sought as a defense.

If you wish to get more information foreclosure defense, you can schedule a free consultation. Contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced real estate and business law lawyer.

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