Contesting Foreclosures

Did you know that you can contest a foreclosure, which might result in you stopping the foreclosure process? It’s true! There may be some faulty dealings on the lender’s end that may result in you saving your home. So if you’re in jeopardy of foreclosure, it’s good to learn more.

What are some ways that you can contest a foreclosure? Here are a few:

  • Demanding proof of ownership. What some homeowners are discovering when they receive a Notice of Default (NOD) is that the party that originally wrote the loan is not who is alleging ownership. This means, you can contest the foreclosure by making the party prove ownership and show an “assignment” of property transfer. If the party can’t prove ownership, the foreclosure may be dismissed in court.
  • Alleging fraudulent loan documents. Another method that some homeowners use is alleging that their loan documents are fraudulent. Sometimes lenders will violate State and/or Federal laws, often in the form of forcing excessive fees or interest rates when drawing up loan documents. If you find this out, you can contest a foreclosure as the lender may have ignored fair lending practices.

Of course, just because you can contest a foreclosure doesn’t necessarily mean that you will be successful in stopping the foreclosure process. After conducting thorough research, often times, homeowners find that no laws have been broken in ownership or lending practices. However, it doesn’t hurt to try. By taking this step with the help of a lawyer, you might be able to actually heighten your chances of saving your home.