Many people are under
the impression that once a bank files a
foreclosure action the loss of the home is
inevitable. I can categorically assure you
that this is false. Numerous
investigations have shown that lenders have
incurred in significant wrongdoing in the
mortgage loans approval process which has made a
significant contribution to the mortgage crisis.
Many institutions extended loans that were
destined to fail with the sole purpose of
generating commissions. This wrongful
conduct has legal consequences and could be the
basis for numerous affirmative defenses in a
mortgage foreclosure action. The key to a
successful defense is to ensure that you
hire an attorney within the twenty days afforded
to answer the complaint. An experienced
attorney should be able to analyze the contract
terms and determine if you have been the victim
of a deceptive practices by the bank. I
can assure you that when financial institutions
find themselves compelled to justify the
violations of certain Federal Statutes in the
judicial process, they tend to get reasonable in
the negotiating process.
Obviously, the more
ammunition afforded the debtor, the greater the
possibility that the bank will assume a reasonable
posture in the modification negotiations. I
must emphasize two points that are essential to the
success of this professional effort. First, as
soon as you receive a copy of the complaint, notify
your attorney immediately. The Rules of Civil
Procedure only allow for twenty days to answer the
complaint. Secondly, personally interview the
attorney that you have selected to ensure that he
has the knowledge and experience needed to deal with
this type of judicial process.
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