Although receiving the paperwork for a foreclosure lawsuit in the mail can be one of the most unnerving aspects of the entire experience of losing a home, homeowners should keep this event in perspective. The bank has simply filed a complaint against the owners of the property for nonpayment of the mortgage loan, and the court is requesting that the owners come and make an answer or appearance at a hearing. The court is simply the third party that is involved and has been petitioned by the bank to resolve the differences between the lender and their clients. Simply filing a complaint does nothing to prove that the mortgage company is correct or the homeowners are guilty.
Minnesota Bankruptcy Lawyer, Bankruptcy Cost, Cincinnati Bankruptcy Lawyer,
But when they avoid the hearing altogether, foreclosure victims do themselves no favors. Without being shown a single fact, they simply accept the premise that the bank's claims are correct and that the court can order their home to be sold out from under them. The court is too happy to oblige the lender, since the homeowners did not show up to defend against the lawsuit, and the sheriff sale will be set and the bank will proceed through to the eviction.
Of course, homeowners do not necessarily have to go to court, but they most definitely should, just to tell their side of the story to the judge at the hearing, and to have their questions answered. Especially because they will not understand every aspect of the bank's complaint against them, they can question the lender or their attorneys. They can also also ask the court for some kind of workout solution or repayment plan, and the judge in the case can order the lender to work with them to stop foreclosure outside of the legal process.
Any solution that is worked on to get the mortgage payments back on track, though, will depend on the foreclosure victims having enough money to pay back over time the amounts they have fall behind. Thus, they will most likely have to show the bank that their income is stable and that they would be able to make payments again, if given a fresh chance on the loan. If there is simply no way to pay back the amount behind, the homeowners may want to consider asking for more time to sell or offer the bank a deed in lieu of foreclosure. Using the courts to file bankruptcy to stop foreclosure may also be considered as a last resort.
But avoiding the foreclosure court hearing will just mean that the mortgage company gets its judgment against the homeowners automatically (default judgment), and then they will take the property to sheriff sale. This is the most common path taken by homeowners in foreclosure, but it completely lets the lender off the hook in terms of proving their case and following all of the correct court procedures. Most banks and attorneys, even if they are aware of all the state-wide and local rules of procedure, will cut corners, fall behind on schedules, or file paperwork incorrectly. Unless someone is there to challenge these violations, the judge will simply accept them.
Even though the homeowners are well aware of the fact that they have fallen behind on paying the mortgage, the lender still has the burden of proof in front of the judge. Foreclosure victims should not make it easy on them to take the home away and sell it by force. The bank is appealing to the government to steal their home, so the homeowners might as well use the government in self defense to keep it for an extra few months or make sure that the lender's attorneys have followed all of the rules. Homeowners who truly wish to save their homes owe it to themselves to find out if the bank or their lenders are acting correctly in this process.
Going to court will also give the homeowners an extra opportunity to ask for options to stop foreclosure, such as a workout program, or more time to sell the house, even if they can not prove that the lender violated any rules. The judge can order the bank to consider other options before going ahead with the foreclosure. The worst idea, though, is for homeowners just to avoid the hearing and give up on saving the home.
The lender hires a local law office to take the home, but these attorneys earn the $1,000s of dollars in fees from the owners' equity. Thus, the bank hires the attorneys, but the homeowners will end up paying for them to take the hard-earned equity and down payment. It would seem prudent for these foreclosure victims to make sure that the lawyers earn the astronomically high fees that will come out of sale proceeds that would otherwise benefit the former homeowners.
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Bankruptcy Attorney Corona
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment