There are many factors that can lead to foreclosure, but there are two things that apply whenever you receive notice that the bank has started foreclosure proceedings or threatens the possibility of foreclosure. First, you must act quickly to protect your rights. Second, foreclosure papers do not necessarily mean that you are about to lose your home.
How A Foreclosure Can Be Prevented
When foreclosure papers are filed, there are often a number of legal defenses. Especially in today’s market, it is common for mortgages to be bought and sold between banks. The only bank that can file for foreclosure is the bank that currently owns the mortgage, and they must have a paper trail that proves their ownership. It is quite common for the wrong bank to file foreclosure or for a bank to not have proper documentation.
Additionally, specific legal procedures must be observed. The bank must file in the proper court and file all necessary documents with adequate supporting information. Banks frequently fail to follow all procedures correctly.
From a more practical standpoint, a bank might file for foreclosure while alleging that you owe more than you do. This could be due to poor accounting, a payment not being recorded properly, or by the bank attempting to impose illegal fees. If a bank made a promise to not take foreclosure action while you attempt to refinance your mortgage, you may also be entitled to hold them to that promise.
The attorneys at the Law Office of Donna M. Fiorelli have years of experience using these and other foreclosure defenses to keep clients in their homes. If you live in Queens, Long Island, or the surrounding areas, contact our firm to schedule a consultation. You do not need to wait until the bank files a court case against you, and we can often better assist you if you contact us before legal papers are filed.