Lenders may choose to start the foreclosure process if you've fallen too far behind on your payments and go into default on your loan. Foreclosure can be intimidating for some people, and you may be wondering if you should secure counsel from a Richmond bankruptcy attorney to help you through the process. While there are some instances where you may not need a lawyer's help (like if you simply plan to remain in your home until the foreclosure process completes, which can take months or even years), there are some times where you absolutely should have experienced counsel on your side. Here are three of these times.
You Want to Fight Your Foreclosure
If you believe you have a valid foreclosure defense that should stop the process and let you keep your home, you absolutely need an attorney on your side to help you defend your rights. Foreclosures are unique and have various nuances that could alter how your case proceeds, so having a knowledgeable lawyer on your side can ensure you have someone who can keep up and guide you in the right direction.
An attorney can also help you develop a proper defense, including these common arguments:
- The loan servicer didn't follow procedures: There are strict and specific laws and guidelines that companies who wish to issue a foreclosure must follow. Believe it or not, mistakes in this process are more common than you might think, and could jeopardize your loan servicer's pursuit of the foreclosure.
- The foreclosing party can't prove they own your loan: If your mortgage was bundled and securitized, figuring out who actually owns the loan can be difficult. This works in your favor because someone who doesn't own a mortgage can't foreclose on it.
- The loan servicer made an error with your account: Loan servicers can make serious mistakes with your account, such as misapplying funds, failing to make payments on time, or charging unreasonable or illegal fees, all of which can dispute a foreclosure case.
You're in the Military
Active members of the military have special exemptions when it comes to foreclosures. If you took out your loan before entering active duty, your loan servicer can't foreclose on you unless they receive a special exemption from the court. However, that doesn't usually stop them from trying, so you should have a lawyer on your side.
The Bank is Stalling or Dual Tracking
If you have requested a loan modification to try and avoid a foreclosure, your bank may try to stall on the modification, or they'll let you pursue the modification but continue to keep the foreclosure process moving forward. This is a practice known as “dual tracking” and is against the law. If you can demonstrate that your lender is in violation of the rules by doing this, you can have your foreclosure process halted.
Need an attorney for your case? Call Bruce W. White, P.C. today at (804) 655-0502 for a case evaluation.