Does your Lender Have the Right to foreclose?

[UniqueSituation]

Enough Already,

THANKS! That's the key I was looking for. I have already called at least 20 attorney's in my area and not one knew anything about this. I will now take the angle of calling those who do know and see who they know in my area. I will definitely keep everyone in the loop. Thanks again!

[UniqueSituation]

Enough Already,

Quick update. Since I'm in California, when we go through foreclosure it's just a process, we are not taken to court, it is irrelevent who owns the Deed (which makes no sense to me).

I am getting that message from the countless attorney's I have spoken with in my area. Also, I called April's office (great suggeston by the way) but they said they knew of no one to refer me to in California (for the same reasons).

I haven't given up because there is much more to my situation than just who owns the note. There is no paper trail of my loan paperwork and nothing was ever noterized. I was never disclosed that I was paying principal only for 2 years and then the terms would change. Long story, but I bought this home from a "friend".

Also, there was a lawsuit (prior to me purchasing the property) on the property and it was settled after I owned it. I have asked for the details of the settlement, but the prior owner would not disclose them to me.

I could go on and on, but until I can find a good attorney to talk this whole thing over with, I think my options are limited.

BTW, I did call the attorney mentioned on this website and was told that because my case is already in foreclosure and because I have lost income over the last several months, there is no need for a forensic loan audit as I wasn't negotiating a loan mod, but more of a potential lawsuit on the seller/lender/etc...

So confusing.

[RedSoxFan]

Hi Unique,

I recently ran across a law firm who (supposedly) has successfully had 250 some odd mortgages deemed void through federal court over the past 5 years for varying violations of RESPA, TILA, etc.

I think the cost involved was laid out like this - free consult to determine if you have a case based on docs presented. if so, $1500 collected to complete audit of disclosures & closing docs. If your case is eligible for filing, another $1500 is charged to do so. if successful - and this is where it gets a little unusual - they mentioned a performance fee of anywhere from $50k to $100k that would appear in the form of a mortgage on your home payable to them, essentially replacing the loan they just successfully voided via legal system.

I suppose if someone was successful in getting a mortgage of significantly higher value "erased", ie. $200k or more and didn't have to make a mortgage payment for 12-18 months, it might be deemed a good deal. i assume everything is negotiable these days so it might be worth digging into.

have you or has anyone heard of other lawyers providing similar services? curious as to what else is out there............

[UniqueSituation]

RedSox Fan!

Thanks for the follow up! Unfortunately I think my questions and topics have worn out their welcome on this site. Your info sounds interesting! I hope someone can comment on it or check into it! It’s great when info gathered here can actually help people and touch their lives in a positive way!

Thanks again!

[Enough Already]

Unique,
It sounds like Red Sox Fan has an interesting angle there. You might try following up on that one. What a mortgage mess. Good luck to you. Please keep us posted.

[RedSoxFan]

hey Unique,
hope this finds you well & making progress. thought you might be interested to hear that according to NJ Court rule 4:64-2, production of the original note is not required to foreclosure. I know you're in another state but I would ask around to see if your state has made a similar ruling. even bad info can be extremely valuable.

also too, I know of borrowers in MA, PA & NJ who have successfully redeemed their property AFTER foreclosure and/or have had the term to redeem extended.

[maxx233]

I may very well go this route of defense, or at least keep it as an option, because 1) The lender's irresponsibility may actually get me a smidge of free rent 2) Most importantly - I want to know that after this is done, it's done! I don't want the *real* owner coming after me later.

I have no expectations or even lofty dreams that the mortgage would get erased, I just don't want to get f---ed later. I want records to show that I at least requested proof of ownership on the debt.

[RedSoxFan]

that's exactly why I posted the info - it is no longer an effective delay tactic. others have raised the issue and the courts have ruled accordingly. now the time it buys is measured in seconds instead of weeks or months as it may have previously.

title insurance covers you against any future claims, the policy you were forced to buy when you got the loan and/or the new owners policy more than protects you on that end.

if you have an interest in keeping the property you should consider a loan modification or forbearance agreement. Personally, I recommend using a 3rd party, one that only receives compensation if they are successful, because lenders look for reasons to decline you (even if you qualify) and the reputable 3rd party is fully vested in your success, unlike your lender.