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Many homeowners facing foreclosure may not realize they have options to avoid losing their homes by challenging the lender’s foreclosure rights. Recent legislation has been passed to address the huge foreclosure crisis. However, it is not yet clear how the government will be able to help homeowners in danger of losing their dream of American homeownership today.
The Hope for Homeowners project is a $ 300 billion dollar program that was signed into law in July and officially launched on October 1. The program will end in September 2011 and it is estimated that the program could potentially help 400,000 homeowners prevent foreclosures.
RealtyTrac reports that this year more than a million American homeowners have lost their American dreams of owning a home, from the beginning of 2007 to the end of September there were a million foreclosures.
If the future outlook is even more pessimistic, two million families are expected to lose their homes to foreclosure in the next two years. Credit Suisse predicts that 6.5 million more loans will go into foreclosure over the next five years, with the peak coming this year.
This is the case because many of the policies that have been signed into law are trying to address the financial crisis facing lenders. More concerns about underinvestment in the mortgage sector of the investment market and therefore may not present the best solutions for homeowners.
The only weapon is to challenge the mortgage lender by fighting back. Find out what rights you have to prevent the lender from repossessing your property. Take charge by learning about the foreclosure process and your mortgage lender’s responsibilities.
What is a mortgage loan default?
Once the homeowner stops making payments, the loan is in default. The mortgage lender servicing the loan will seek to foreclose on the property and repossess the property. Most homeowners generally agree with the foreclosure process and say they agree and walk away.
Mortgage companies hire foreclosure attorneys to handle the foreclosure process, filings, notices, etc. The foreclosure attorney is often never truly challenged by the homeowner and the foreclosure is finalized.
How to challenge a foreclosure?
Homeowners can challenge a foreclosure because lenders misrepresented loan documents, bank statements, fees, home values, interest rates, etc. Foreclosures generally end because homeowners rarely challenge them.
A common practice to contest a foreclosure is to require the lender to present the original promissory note. This forces the bank to prove that you actually own your property in order to proceed with the foreclosure.