Bankruptcy and Foreclosure Defense

Foreclosure Defense is quickly becoming the only real way for a homeowner who is either upside down in property value or in foreclosure to stay in their home. By filing very specific counter claims and proactively attacking the bank for real fraud and predatory lending, which 90% of all loans contain the homeowner is putting the bank on the defense and forcing them to eventually come to a mutually beneficial agreement to settle the case and restructure the current loan to something the homeowner can realistically afford.

Judicial and Non Judicial states

Loan modifications do not allow the homeowner such benefits. Only by using the legal system can one accomplish this task. Foreclosure defense is the strategy, but it really depends on which state you live in. If you live in a judicial state then you must wait until the bank serves you with foreclosure papers before you can file your counter claims back at them.

Judicial states require the lender to take a more formal process to foreclose using the court system to do so. A non judicial state is one that does not require the bank to use the legal system but rather give public notice then use a trustee to foreclose on the property. This can happen in as little as 90 days. In this case you will want to use a well devised bankruptcy attorney to lure your lender into filing specific claims against you that you owe them “X” amount of dollars.

That is when in both scenarios your attorney will ask the bank to file an affidavit of truth and clearly state in court that they have the legal right to foreclose on your home. In bankruptcy court the lender must claim to be a party owed in the bankruptcy, when they do this then your attorney will ask to have the lender prove they have the authority to do so and when they cannot you will have them by the you know what’s.

They have just committed fraud by claiming you owe something they cannot validate. In most cases this will result in a settlement with the lender. In non judicial states Foreclosure Defense is still a great strategy for saving your home but it is using a bankruptcy the right way and to your advantage, but very few attorneys know how to execute these strategies that is why it is critical to work with one that does.

Filed Under: Bankruptcy • Foreclosure • How To Save My Home

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