How to Stop Illegal Foreclosures
Foreclosures generally take place when a homeowner defaults on their loan payments to the bank or financial institution that originally gave them the loan to purchase the house. However, missing a payment or even a few payments in some areas does not necessarily mean that the bank can legally foreclose on your home. If you feel that your home is being illegally foreclosed on, then there may be a way to stop the foreclosure. However, you will very likely need legal assistance because the housing market and home loans is a complex and intricate system that is difficult to navigate on your own.
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Instructions
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Contact the Department of Housing for your state. Find out what the laws are for foreclosures. In some states, it is legal to foreclose on a home after one missed payment. In others, this is illegal.
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Contact the bank or financial institution that is foreclosing on your home. Explain that according to the Department of Housing, the foreclosure is illegal and that you are willing to work with the lender on a new payment plan for your mortgage. In some cases, this can stop the foreclosure.
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Get help from an attorney who is experienced in dealing with illegal foreclosures if the lender is unwilling to budge on the foreclosure. Weeding through the intricate web of red tape and housing laws will be daunting and likely impossible to do on your own. To save your home and stop the foreclosure, get help from an experienced attorney.
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Keep all correspondence you have with the bank or financial institution that is foreclosing on your home. If the foreclosure is illegal, these records will help your case.
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File a case against the bank or financial institution. In some cases, the lender might then settle and agree to work with you on a new payment plan that you can afford. If not, then you and your attorney will have to present your case to a judge. Proper documentation should be able to prove that the foreclosure is illegal in your state and hopefully the judge will rule in your favor.
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Tips & Warnings
Some attorneys may be willing to take on your case pro bono or for a reduced fee. Also, some communities will provide free legal representation in the case of foreclosures. If you cannot afford legal representation, it never hurts to ask.
References
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