A good beginning step for learning how a foreclosure defense attorney may be able to assist you in overcoming foreclosure is to know how the typical foreclosure procedure works. Under Kansas law for example, foreclosure is a judicial process. To start a foreclosure suit, the bank files a complaint against the borrower, demanding a court order for the return of the outstanding mortgage balance, plus the principal balance, if any. The bank must follow a specific process, which varies from state to state, in order to bring suit. In some states, lenders are required to post a notice of default to the borrower; in others, they must mail a notice of default to the borrower’s last known address. In addition to the requirement of posting notice of default, banks must also file a complaint with the courts and serve a copy of this complaint on you, along with a proposed timetable for paying your mortgage loan. If you accept the plan offered by your lender, you must attend court-ordered counseling with your attorney, and present proof of financial hardship to the court. You may also be required to post a bond, which is an additional financial safeguard. This bond, together with your attorney, will attempt to prevent your lender from taking either (a) a judicial action against you; (b) a nonjudicial foreclosure defense action against you; or (c) both a judicial and nonjudicial action against you. The failure to pay these actions results in the loss of your property, and, in extreme cases, both your home and your livelihood.
One important tool for your foreclosure defense is a promissory note. The term “promissory note” refers to a legal document that, when signed by the parties involved in the transfer of property, gives each party permission to execute legal actions in the event that the other fails to do so. For instance, a promissory note provides that if the lender fails to pay you your debt, he or she may apply to take a foreclosure defense to obtain possession of your home. A mortgagee, on the other hand, can apply to foreclose on your house if you fail to make timely payments on your mortgage. If the other party agrees to these terms, they can commence with the foreclosure process immediately, without having to go through the courts. Foreclosure defense attorneys can help you obtain the courts’ permission to take this action. The foreclosure laws vary according to the state court in question. However, if you can prove that the foreclosure was taken improperly, your attorney can argue on your behalf in court, proving that you were not given a chance to cure the default.
Our foreclosure defense attorneys work closely with homeowners to determine whether the case has strong potential chances for success. They also help them explore all possible options before resorting to litigation. This is because the foreclosure proceedings typically last months. During that time, a homeowner might lose valuable time which he or she may use in preparing for a trial. Another reason why it is advisable to take this action early on is because the lender will almost always offer the option to settle the debt in lieu of foreclosure defense. In addition, most plaintiffs are given the opportunity to enter into a plea bargain, which may reduce their fees and make the entire litigation process quicker. Most foreclosure defense attorneys work with cases that involve both state and federal courts. Residents can pursue this type of lawsuit through either the federal courts or the state courts. However, it should be noted that the rules governing foreclosure defense cases differ from those governing other states. Therefore, it is best to check the regulations for the state in question before deciding to proceed with filing a suit.
There are two types of cases that can be pursued in state or federal courts: non-recourse and recourse. Non-recourse cases are when borrowers have no right of recovery, such as in the case of defaulted mortgages. Proved default results in the borrowers losing their homes, but in those cases lenders usually have the right to sell them anyway. Refused foreclosure requests are not non-recourse cases. In contrast, recourse cases involve borrowers who must obtain a loan signature, which is usually done by a mortgagee or loan company. The lender is then able to recover its remaining loan balance through compulsory foreclosure actions. One important difference between non-recourse and recourse foreclosure defense is that lenders only need to execute a deed of trust to take recourse; borrowers can invoke the law against the lending institution without executing a deed of trust. Because of this distinction, it may be more difficult for homeowners to obtain desired outcomes in their foreclosure defense actions. For foreclosure defense contact us by phone.
Common Foreclosure Questions: