To stop a foreclosure, it is necessary for homeowners to be knowledgeable about how the foreclosures process works in court. The government may not have the power taking away a borrower’s house, but that would be possible if an owner does not defend his property with full force in court.
Homeowners defend their properties against foreclosure as a delaying tactic. They need more time before selling the home or are currently making arrangements for refinancing.
It is not about winning in the end, but rather avoiding court proceedings and long waiting time before getting resolution. The lender would be charging additional interests and fees to a loan, though it may not be a big deal for the property owners who have negative credit. What is important is a chance to fix their current financial situation.
Another way that borrowers do to stop foreclosures in the court is to pressure the banks to make negotiations with them or to win the case stating that a lender did overcharge them for the mortgage.
A homeowner may pull the case proceedings out and ask the judge to pressure the bank into adjusting a loan or by offering other resolution like paying a smaller amount to have the account reinstated. Winning the case against a lender can reduce foreclosure possibilities by providing a homeowner a monetary reward for damages incurred.
Another method is by showing the court that a lender disregarded a provision of Truth in Lending Act (TILA). That way, the loan will be voided and the borrower can maintain his house. The lien of the property will also be gone.
In addition, the lender will be required to return the borrower’s money that was paid to them.
It is always up to the borrower if he would be willing to defend his asset in the court to stop foreclosure. He should have a firm decision as to what he really wants if he doesn’t want the house to end up in foreclosure.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.