How to Fight Foreclosure
“Can I fight foreclosure?” The simple answer is YES!
Mortgage services and lenders want you to think that there is nothing you can do to fight a foreclosure, but you can – if you act fast. REMEMBER, you only have 20 days in Wisconsin to answer a foreclosure summons and complaint.
The first step in fighting foreclosure is to get your documents in order. An experienced attorney would want to review all your loan documents and all correspondence that you’ve received from the lender. This paperwork can be critical because it may contain valuable information you can use to show the court that the lender may have violated state and federal lending laws or engaged in other illegal or unfair trade practices.
The review of your documents and correspondence will help an attorney determine what defenses or counterclaims you might have to the foreclosure lawsuit.
Some of these defenses might be:
- Standing – determining whether the right party has sued you. The mortgage mess we are experiencing right now is partly due to the fact that mortgages are bought and sold and bundled as securities with the homeowner changing servicers several times during the life of the loan.
- TILA violations – a federal law called the Truth In Lending Act requires that lenders disclose to consumers the key terms and all costs of a mortgage loan in a plain and understandable manner. A violation of this law may give you the right to rescind the mortgage.
- Improper Service of Process – The lender or servicer must follow certain legal requirements with regard to filing and serving you with the summons and complaint. If the lender did not properly serve you, you may be able to ask the court to dismiss the foreclosure action against you.
- RESPA violations – another federal all call the Real Estate Settlement Procedures Act requires disclosure in advance of all amounts being paid to mortgage brokers and other third parties and prohibits hidden increases to the interest rate to cover the mortgage broker’s fees. RESPA gives you the right to request in writing certain information about your loan and if the lender fails to respond, you can be entitled to damages.
- FCRA violations – your credit history is governed by the Fair Credit Reporting Act. If a lender falsely reports credit information to the credit bureaus in an effort to collect on a debt or harm your credit rating, you may have the right to seek damages.
- HOEPA violations – this law protects you when your mortgage and note is sold and assigned to another entity. There are specific provisions that can protect you from an attempt by a lender to avoid responsibility by transferring your mortgage to another lender.
- Federal Loan Modifications – there are various programs sponsored by the federal government that may require participating lenders to offer loan modifications or other loss mitigation efforts before a foreclosure can be filed.
There can be other defenses or even counter-claims against the lender for damages you may have suffered as a result of their practices. If you would like to know more information about fighting foreclosure, please call 414-727-0123 today for an appointment with one of our attorneys. Maxwell Attorneys LLC has experience in the defenses you need to use in fighting a foreclosure action.
