Foreclosure Defense – Anthony Carroll

When a lender obtains a termination of the mortgagor’s equitable right of redemption, the borrowers
file a defense to fight against the lender’s action. The strategy adopted by the borrower in order to
defend the foreclosure action of lender is termed as foreclosure defense. There are many steps that a
lender can take to avoid the bankruptcy. Mortgage modification, short sale and deed in lieu are some
of the options for the lender. However, the borrower might indulge in a proactive legal action against
the lender. Some of the common tools for such a legal battle are production of mortgage note, which
is a documented proof of a debt which describes the terms of debt repay. Predatory lending is another
tactics that lenders adopt, which uses unfair lending practise and advertising lower than actual interest
rates. This helps the lender to gain profit from foreclosure on the collateral. Truth in Lending Act
(TILA) of 1968 also helps a borrower to get informed about the usage of consumer credit. TILA
violations and rescission leads to voiding the party contracts. A borrower may cancel the transactions
involving lien on principle dwellings, in order to defend the foreclosure.

In some cases, the properties are sold and resold multiple number of times, converted into securities,
and in the process, the original mortgage note is lost. Non-existence of document can lead to delay
the foreclosures. This also makes a good case to re-negotiate the mortgages. In most of the cases
the owner extends its stay in the property until they are financially capable to defend the foreclosure.

Foreclosure auction or bankruptcy is the last option that a lender has to make the payments.
However, this selectively reduces the credit rating of the lender and affects his/her future financial
endeavours. Besides, bankruptcy and auction is a tedious process, with a lot of document collection,
discovery and litigation preparation involved. The bankruptcy laws are tedious and federal. This
whole complexity works in the favour of a borrower and defends him/her in foreclosure cases.

For More Information Contact Anthony Carroll – The Law Offices of ALG and Associates or call
at 1-888-LAW-3111