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

By Charles Brown


Homeowners can do everything right and still get behind on their mortgages. Unexpected things happen, like divorce, illness, and job loss, that put their homes in jeopardy. Most mortgage lenders don't want non-performing assets on their books. They will start foreclosing on delinquent mortgages though, even if the delinquency is through their own error. If you find yourself facing the loss of your home, a foreclosure defense Glens Falls NY attorney has good advice for you.

Foreclosing parties don't always go through all the steps required when they are repossessing real property. If the laws are not followed to the letter, the homeowner can petition the court to get the lender to stop the proceedings. The mistakes the lender makes have to be significant however. It isn't good enough to point out to a judge that someone's name is spelled wrong, or a date is incorrect. The error must be substantial.

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.

If you are in the military, you have special protections under the Servicemembers Civil Relief Act. Service people who took out a loan before entering active duty can't be foreclosed on without the lender going to court, no matter whether it is state law or not. There are also special considerations for active military who got home loans after going on active duty.

Your best bet is probably going after the mortgage servicer. This is the company that actually handles your account. These companies make mistakes all the time. If you believe the servicer has been inaccurate applying payments to your account, you could 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.

One of the biggest offenses mortgage services commit is the practice of dual tracking. At one time, this was common, but the laws have changed. Dual tracking happens when a servicer is processing a loan modification for a borrower while, at the same time, continuing the foreclosure process. Failing to disburse escrow funds, such as taxes and insurance, is a violation that you can use to stop the lender from foreclosing.

Home ownership is the goal of many and has a lot of advantages. Making your payments on time will increase your credit score, lower insurance rates, and help you get additional credit if you need it. If you are faced with losing your home, all this changes. When the mortgage lender has made the mistake, keeping good records may be your first and best line of defense.




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