Kelly Moore: How Do You Stop A Foreclosure From Lawsuit

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Formally, a mortgage lender (mortgagee), or other lien holder, obtains a termination of a mortgage borrower (mortgagor)’s equitable right of redemption, either by court order or by operation of law (after following a specific statutory procedure).

Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, it is a cloud on title and the lender cannot be sure that they can repossess the property.
Therefore, through the process of foreclosure, the lender seeks to immediately terminate the equitable right of redemption and take both legal and equitable title to the property in fee simple. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowner association dues or assessments.

How Foreclosure Works

When you buy expensive property, such as a home, you might not have enough money to pay the entire purchase price up front. However, you can pay a portion of the price with a down payment, and borrow the rest of the money (to be repaid in future years).

Homes can cost hundreds of thousands of dollars, and most people don’t earn anywhere near that much annually. Why are lenders willing to offer such large loans? As part of the loan agreement, you agree that the property you’re buying will serve as collateral for the loan: if you stop making payments, the lender can take possession of the property in order to recover the funds they lent you.

To secure this right, the lender has a lien on your property, and to improve their chances of getting enough money, they (usually) only lend if you’ve got a good loan to value ratio.

File a Lawsuit to Stop Your Foreclosure

Despite the banks best efforts, you’ve fought off foreclosure for longer than you expected to be able to. Perhaps you’ve used a third party to postpone the foreclosure process, or even filed for Bankruptcy to stop the sale – but this time it looks like they’re really going to go through with selling the home. Many people think that they are at the end of the road, with no legal option to stop their foreclosure, but filing a lawsuit to save your home may be the best option you have.

Filing a lawsuit against your lender to stop foreclosure is effective, and can ease all of the stresses that most homeowners deal with while stuck in the process. The official legal term is “mortgage litigation,” and most cases against lenders never make it to trial. Instead, our foreclosure attorneys go up against legal counsel that represents the bank, and negotiate a deal that prevents the two parties from having to spend the big bucks by taking the case to trial.

Many homeowners facing foreclosure don’t even take the time to call us for a free consultation because they think that filing a lawsuit to stop foreclosure will simply be too expensive and time consuming. The truth is, that our foreclosure defense attorney’s goal is to leave you in a much better position than when you first decide to sue the lender. Our free consultations will answer all your questions regarding cost, timeline, and what you can reasonably expect in the end.

There are 2 common legal options that can prevent a foreclosure. These options include either filing a lawsuit [foreclosure litigation], or filing a bankruptcy. The best legal strategy to stop a foreclosure depends on your personal situation and is best carried out by a successful foreclosure attorney with a strong track record of stopping foreclosure and saving homes.

A homeowner can sue their lender if they illegally issue a notice of trustee sale or initiate a foreclosure sale in violation of the California foreclosure laws. In many cases, lenders do not comply with the California laws that protect a homeowner from an illegal foreclosure. An experienced foreclosure lawyer can immediately determine if the lender has violated the law and if it is possible to file a lawsuit to stop foreclosure proceedings.

Bankruptcy is also a very effective legal strategy for stopping a foreclosure proceeding immediately. An experienced foreclosure attorney can file the case to stop a sale the same day. In many instances, bankruptcy allows individuals to restructure debts, get debt relief, stop foreclosure sales, and keep the home.

A loan modification is a negotiated agreement to change the monthly payment you make, the length of the loan, and the interest rates the loan charges. This type of negotiation does not require a foreclosure lawyer. When it is impossible to continue making payments on a property, a short sale is another way to avoid foreclosure. The lender must agree to sell the property for the current value. This usually results in avoiding a claim from the lender later, and may result in making money from the sale depending on whether there is equity in the property.

A deed in lieu of foreclosure can also prevent a foreclosure and possibly keep a foreclosure from affecting long term credit rating and a borrower’s ability to buy another home.

Foreclosure is a complicated and emotionally draining process. If you are having received a notice of foreclosure, notice of default, or notice of trustee sale, you should pick up the phone and talk to a foreclosure lawyer at Consumer Action Law Group. Their lawyers are trained and dedicated to preventing foreclosure, with a documented record of success in all methods of stopping foreclosure and saving homes. Call our foreclosure attorney today. We offer free legal advice on the first call, and we can stop your sale right away and save your home.

File a Lawsuit to Stop the Foreclosure

If your lender is using a no judicial process to foreclose—where the foreclosure is completed outside of the court system—then you might be able to delay or stop the foreclosure by filing a lawsuit against the lender to challenge the foreclosure. This tactic normally won’t work if the foreclosure is judicial because by the time of a foreclosure sale, you’ve already had your opportunity to be heard in court.

To prevail in your lawsuit against your lender, you will need to prove to the satisfaction of the court that the foreclosure should not take place because, for example, the foreclosing lender:

• cannot prove it owns the promissory note
• did not act in compliance with state mediation requirements
• violated the state’s Homeowner Bill of Rights
• did not follow all of the required steps in the foreclosure process (as determined by state law), or
• Made some other grievous error.

The downside to suing your lender is that if you’re unable to prove your case, this will only delay the foreclosure process. Lawsuits can be expensive and, if you have no reasonable basis for your claims, you could get stuck paying the lender’s court costs and attorneys’ fees. Call Ascent Law LLC today to learn more about Fighting Your Foreclosure in Court.

Talk to an Attorney

If you’re facing an imminent foreclosure sale and considering any of the options discussed in this article, it is strongly recommended that you consult with a local foreclosure attorney or bankruptcy attorney immediately. To get information about different loss mitigation options, you should also consider talking to a HUD-approved housing counselor.

Foreclosure Litigation

Unless you and your lender agree on how to cure the default on your mortgage, you are unlikely to stop the foreclosure process without taking court action. A lawsuit must be filed with the Superior Court in the county where your property is located alleging the basis for stopping the foreclosure — for example, violations of foreclosure or lending laws. Your lawsuit must also request that the court issue temporary restraining orders and a preliminary injunction to stop the foreclosure process while your lawsuit is pending. The temporary restraining orders are typically sought within days of filing the lawsuit and are generally granted by the court; however, by law the temporary restraining orders cannot last longer than 22 days. Therefore, the court will also set a hearing date within the 22 days regarding whether a preliminary injunction should be issued stopping the foreclosure for the duration of the lawsuit.

How much will it Cost?

Most homeowners that pick up the phone and call us for a free consultation want to know how much it will cost to file a lawsuit against their mortgage company to stop foreclosure. The truth is that we typically cannot answer this question until we ask a few of our own.
• We need to know when the sale is scheduled to be sold.
• How many payments have been missed on the mortgage?
• What type of income the homeowner currently has?
• Has the homeowner ever filed for Bankruptcy?
Depending on the circumstances, there may be a few other questions that we need answered as well before determining how much it would cost to enter into mortgage litigation.
How Long Will It Take?
Once you file a lawsuit against your mortgage company with Consumer Action Law Group, it typically takes 6 to 9 months to resolve the case. These numbers are merely an average, as we’ve had many progress quicker, and a few take a little longer than the allotted time above.
What Can You Expect?
You can expect the same results as our previous clients that have sued their mortgage company to stop their home from being sold at foreclosure auction. Our foreclosure defense lawyers have an excellent winning record in mortgage litigation cases, and are ready to fight for you. Call us today to speak with our team about how you can get started today.

Can I Really Stop Foreclosure?

Absolutely! Many recent cases have been filed improperly and an experienced attorney can assist with the identification and filing of substantive and procedural defenses with the court and vigorously defend your case.

Due to the lender’s actions, omissions or other facts surrounding your case, you may be able to stop making mortgage payments and stay
In your home while your attorney vigorously defends your property. This does not necessarily mean that you will not have to pay the loan back or completely Stop Foreclosure.

It is possible to completely Stop Foreclosure if the bank or lender is in violation of the Florida Unfair Lending Act or other predatory lending practices. If the lender has committed such a violation, the entire principal and interest balance may be waived and the mortgage may be voided. This may not be relevant in your case. But, at the very least, a successful defense can do is buying you precious time to:

Stay in your home
* Negotiate a work-out with the bank
* Sell your home for a fair price
* Refinance your home at a fair rate
* Continue to collect rent on the property
* Apply for a Court Ordered repayment plan
* File a Chapter 13 or 7 Bankruptcy

Foreclosure Attorney Free Consultation

When you need legal help with a foreclosure in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you with your foreclosure.