Possible Defenses to Foreclosure

Codilis and Associates is part of a family of legal companies spanning five states that have provided comprehensive legal services for over four decades. The qualified attorneys at Codilis & Associates are well-versed in a variety of real estate disputes, including foreclosure defense and litigation.

As a homeowner, you may be inclined to challenge a foreclosure action. However, there’s only a basis for that under specific circumstances. One of the common foreclosure defenses is the claim that a loan owner lacks standing. This means that the institution that provided the loan cannot prove that it owns said loan. When a loan gets sold, bought, bundled, and securitized enough times, it is not uncommon for the bank to lose track of the original promissory note that proves ownership.

If the mortgage servicer or the entity that collects and processes mortgage payments makes a mistake, it can also form the basis for foreclosure defense. Some of the more common mistakes include imposing fees that are not authorized by the mortgage contract, crediting mortgage payments to the wrong party, and significantly overstating the amount you have to pay to reinstate your mortgage.