Foreclosure Defense Glens Falls NY Attorneys Have Some Tips For Struggling Homeowners

By Charles Brown


Major illness, divorce, and job loss can quickly get homeowners behind on their mortgage payments. Most banks are willing to work with borrowers initially because they don't really want to take back their property. If the situation is not resolved however, the lender will begin proceedings, even if they made the initial mistakes. If you have gotten into a mortgage crisis, that you believe is not of your making, foreclosure defense Glens Falls NY lawyers have some suggestions for you.

Some states require lenders to go through the court system in order to foreclose. Others don't. When the entity doesn't follow the law, homeowners can challenge their decisions and petition the court for consideration. The error has to be egregious however. A misspelled name or misplaced comma won't change the outcome. If there is a serious mistake, the court can make the lender start the process from scratch.

You can always try to build a case by challenging the mortgage lender to prove it owns the loan. Only the actual entity that owns the loan can foreclose on it. Loans are typically sold numerous times over the course of the debt, and the institution that begins foreclosing ends up not even owning the paper. This situation is less prevalent that it used to be however, but it may still be worth looking into.

Active military service people are given special consideration under the Servicemembers Civil Relief Act. If you got your loan before you entered active duty, the mortgage lender is required to go through the court to foreclose, whether or not it is a state requirement. For those who got their mortgages after entering active duty, there are certain protections as well.

If there has been an error made on your loan that put you behind, it was most likely caused by the mortgage servicer. This is where most mistakes occur. These are the companies that actually handle the accounts. If they made a mistake when applying your payment to your account, you may have a case.

If a computer operator doesn't key in your payment correctly, you might not get credit for your total payment. Sometimes payments aren't posted the same day they are received, which is a violation of the law. These mistakes can start you on the path of penalties, bad credit, and foreclosure.

Mortgage services sometimes engage in the illegal practice of dual tracking. This happens when the company is supposedly working with a client to get their loan modified while, as the same time, proceeding with the foreclosure process. There are laws in place that restrict, and in some cases prohibit, this practice. If a mortgage service doesn't disburse escrow funds, like homeowners insurance and taxes, you could have a good case to stop them from foreclosing.

Owning a home is something that many people dream about. Most of them don't consider the consequences of a sudden loss of income and how it will affect their mortgage. Even fewer of them fail to consider that lenders might make serious errors that could result in the loss of their property.




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