Author: Brian Covert

Common Mistakes Homeowners Make During Foreclosure

For any homeowner, foreclosure can be a long and daunting process, accompanied by many other potential problems. When you continuously miss your mortgage payments, it leaves your lender with no choice but to foreclose your home. The good news is that there are several ways to protect your home. However, intimidation, anger, fear, and several other emotions lead people to making some mistakes that render foreclosure inevitable. Here are some common mistakes that you, as a homeowner, should avoid during foreclosure:

Avoiding the Lender

When facing a foreclosure, people make the mistake of avoiding calls and messages of their lender. It may be hard for you to rely on the person/entity that has put you in this situation in the first place, but your lender can help you ward off the foreclosure. You may think that they are after your home, but in reality, all they want is you to make the mortgage payments. If your home goes into foreclosure, they will incur a lot of costs in selling your property.

It is highly recommended that you remain in contact with your lender, and let them know your reasons for missing the payments. They may provide you with several options to avoid the foreclosure such as a loan modification, forbearance agreement, or delayed repayment plan.

Damaging or not Taking Care of your Property

Learning about foreclosure can spark anger and aggravation, which may cause people to start doing damage to their home. While it is understandable that you may get frustrated, tearing down walls, breaking the windows, stripping fixtures or pipes, etc., can get you in even more trouble than you already are. Your lender can file a report of vandalism against you, due to which you may have to pay them more money after the foreclosure.

Aside from this, many people also stop taking care of their home, which is a big mistake. When your property is in bad shape, it becomes difficult to attract buyers for a short sale or for the lender to sell your house. Just like damaging your property, the lender can hold you liable for expenses they incurred in making repairs.

Not Looking into Government-Initiated Programs

The Federal Housing Administration (FHA) has setup the FHA Secure Refinancing program for homeowners so that they can avoid foreclosure. It is designed to cater to the needs of homeowners who cannot afford to pay back their mortgage because they have opted for interest-only loans or due to an adjustable-rate mortgage reset. You can find more information about this program at the FHA’s official website.

Not Hiring a Foreclosure Defense Attorney

Most people think that hiring an attorney is just an additional cost, and they may as well use that money for taking care of other important matters. A foreclosure defense attorney is your best option to delay the process, negotiate the terms of your mortgage with your lender, and stop the foreclosure altogether. They also ensure that you don’t make any mistakes that can end you up with more legal problems.

If you want to find workable solutions that can save your home from going into foreclosure, it is imperative that you hire an experienced foreclosure defense attorney. Contact Covert & Covert, LLP at (630) 717-2783 or online to schedule a free consultation to evaluate your legal options. We have several local office including in Schaumburg, Warrenville, and Naperville.

The Foreclosure Defenses That Can Help Save Your Home

The declining economy and the never-ending debt cycle make it difficult for an average American homeowner to keep up with their mortgage and other loan payments. Due to financial hardships, homeowners are constantly worried about the possibility that their home will be foreclosed by banks. If you find yourself in such a situation, but want to fight back to stay in your home, you should turn to an experienced foreclosure defense attorney for help.

While the best course of action varies from case to case, some types of foreclosure defenses are similar and prove to be effective in many cases. The following are some common foreclosure defenses that can save you from giving up your home:

Failure to Follow State Procedures for Foreclosure

Sometimes, the foreclosing party, i.e. the bank or the lender, doesn’t properly follow the state specific foreclosure procedures. For example, the lender didn’t issue a public notice to notify all the parties involved in the proceedings. In such a case, your foreclosure defense attorney can help you challenge the foreclosure. If you win the case, the court will order the foreclosure party to perform the entire procedure again in order to enforce a foreclosure.

Unjust Lending Practices

You can file a claim against the foreclosing party if they have deceived you, failed to provide complete information, or acted unfairly in any way. Under the Truth In Lending Act (TILA), the lenders must disclose payment schedule, annual percentage rate, and other important information regarding the mortgage. If the lender fails to give out this information, the borrower can challenge the foreclosure.

Military Personnel on Active Duty

The Servicemembers Civil Relief Act (SCRA) provides servicemembers special protections against foreclosure. If your home is being foreclosed while you are on active duty, you can ask the court to provide a postponement of the proceeding in writing, which will be of nine months.

Mistakes/Errors in Mortgage Payments

The federal law requires mortgage loan servicers to apply charges and payments to a mortgage loan as per the 12 U.S. Code § 2605. If they fail to comply with this statute, you can file a claim to stop the foreclosure action. Moreover, if a homeowner can prove that the lender violated the rules associated with mortgage loan servicing, they can prevent the foreclosure by arguing the bank estopped from claiming a mortgage’ default payment.
The Lender cannot Prove the Mortgage’s Ownership

Only the owner of the mortgage – the direct owner or someone representing on owner’s behalf – can enforce a foreclosure action. If your mortgage has been sold or bought by several different banks, investors, and lenders, there is a good chance that the last holder of the mortgage cannot prove who it actually belongs to. The court requires the foreclosing party to produce complete documentation of the mortgage’s ownership, which in such a case becomes quite difficult.

If you have received a notice for foreclosure or feel that you are at a risk of losing your home, you should immediately consult your case with a competent foreclosure defense attorney. Contact the Law Office of Brian Covert at (630) 717-2783 or online to schedule a free consultation to evaluate your legal options. We have offices in Schaumburg, Warrenville, and Naperville.

Welcome

Welcome to the Covert & Covert, LLP blog. Our Naperville, Illinois office primarily handles cases involving foreclosure and personal injury. We have a strong reputation for quality legal results throughout Northeastern Illinois. We work closely with you to address all of your concerns. Through this blog, our goal is to educate, inform and share important news.