Banks try to give homeowners the impression that if a mortgage payment is a day late and a dollar short, they will be forced to leave their home immediately. While banks do have a right to be paid, homeowners have due process rights that allow a foreclosure only after the bank properly follows the necessary legal procedures. If a foreclosure has been filed or seems imminent, a number of defenses may be available.
A bank must have standing to bring a foreclosure action. This means that it must own the mortgage, and this is not always a simple technicality in a time when mortgages are constantly bought and sold between banks. A bank must present adequate proof that it is the current owner of the mortgage or it cannot file for foreclosure regardless of the borrower’s delinquency.
Many banks include provisions such as a time to cure a default or no foreclosure after a first late payment. No matter how many times the mortgage has changed hands, the current bank must honor the contract to the letter of the law. If the contract did not allow a foreclosure, the action could be dismissed.
Foreclosure paperwork routinely has errors such as the amount owed, the amount past due, the calculation of interest, or even the address of the property. These errors could invalidate the bank’s foreclosure filing, or it may be forced to fix them before taking further action.
- Remain in your home during court proceedings
- Execute the available defenses
- Negotiate a settlement such as a loan modification
- Fight against a deficiency judgment
To learn more about how to defend a foreclosure action in Miami County and Broward County including North Miami Beach, Ft. Lauderdale, and Hollywood, contact Patrick Jean-Gilles, P.A. to schedule a consultation.