5 Surefire Defenses for Foreclosures in MA

Just like the rest of the US, foreclosures in MA are rampant and many homeowners are either facing a legal battle or already giving up the fight. For those who are about to engage their lenders on a head-on collision, here are five grounds that you can use as defenses. With the help of your lawyer, determine which is applicable to your situation.

Defending Foreclosures in MA

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What You Can Do When Facing Foreclosures in MA

If you are ready to give up, then stop reading this article. But if you want to put up a good fight, these grounds can be very effective in winning your home back. Remember how you work hard just to get a house only to be foreclosed by a lender who is equally at fault. This should motivate you to hire a good lawyer and stand your ground.

Difficulty with the promissory note

In order for the bank to foreclose, they have to enforce the promissory note that you gave them. Due to the rampant secularization, that is, your mortgage being sold to various investors, it’s becoming difficult for the lender to prove whom you signed the note to. On top of that, Massachusetts law on promissory notes requires the lender to be in possession of the note when they want to foreclose.

Failure to comply with the Loan Modification Program

After the recent economic recession, the US Government initiated many programs to prevent foreclosure. The most famous of these programs is HAMP and under this, the banks promise that they will reduce the interest rate to as low as 2% before foreclosing. The problem is, banks seldom comply with this program even when they are given billions of dollars of taxpayers’ money just to participate.

Fannie Mae, Freddie Mac, FHA, VA, and RHS special protection for homeowners

Government-backed loans carry with it government protection and lenders are required to take extra care when dealing with them. Borrowers under these kinds of loans can and should enjoy this protection because it’s very well documented.

Deceptive and unfair mortgage servicing

It is a known fact that a number of mortgage companies are not well managed. For example, most, if not all, of their operations are automated and require little to no human interaction. A simple glitch in their program can escalate into huge problems including foreclosure. Sometimes, the only way to solve this kind of problem is to drag them to court.

Mortgage is not in the interest of the borrower

Under Massachusetts law, a mortgage must be in the best interest of the borrower. Consequently, banks are not allowed to refinance unless it is the best financially reasonable decision. A violation of this regulation is punishable under the Massachusetts Consumer Protection Act.

When facing foreclosures in MA, take note that with these five surefire defenses. There is a possibility of stopping or stalling foreclosure when the lender clearly violated any of these grounds. The best thing that you should do is to hire a good lawyer and let him do the poking.

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