Foreclosure Defense

Until recently, successful defenses against foreclosure were relatively rare. But that is changing rapidly -- more homeowners are successfully challenging foreclosure actions.

This change is due, in large part, to the unearthing of more and more evidence that the real estate industry has been rife with fraudulent and predatory lending practices. Because of this evidence, courts that once rubber-stamped foreclosure actions are now beginning to shift their sympathies towards homeowners.

Homeowners and their attorneys are taking advantage of this change in judicial attitude, and challenging foreclosure actions in many different ways.

You may be able to fight your foreclosure by proving that your lender violated a federal or state law designed to protect borrowers from illegal lending practices. Two federal laws protect against unfair lending practices associated with residential mortgages and loans: the Truth in Lending Act (TILA) and an amendment to TILA commonly termed the Home Ownership and Equity Protection Act (HOEPA). TILA applies to all loans. HOEPA only applies to "high cost" loans -- certain loans that have an unusually high interest rate or that come with unusually high up-front processing fees.

Mortgage servicers make mistakes all the time when they're dealing with borrowers. You may be able to challenge the foreclosure based on mistakes such as:

  • crediting your payments to the wrong party (so you weren't, in fact, delinquent to the extent asserted by the foreclosing party)
  • imposing excessive fees or fees not authorized by the lender or owner, or
  • substantially overstating the amount you must pay to reinstate your mortgage.

In some cases, the foreclosing party doesn't follow state procedural requirements for bringing a foreclosure action (for example, it fails to properly serve on you a notice of default required by state law). If this happens, you may be able to challenge the foreclosure. If your challenge is successful, the court will issue an order requiring the foreclosing party to start over.

219 N. Indian Hill Blvd #201, Claremont, CA 91711
800-563-4144