Filing a Lawsuit
The one certain way to stop a foreclosure is by filing a Chapter 13 bankruptcy. Another way is through litigation, either by filing an Answer to a judicial foreclosure lawsuit, or by filing a Complaint in a non-judicial foreclosure. However, these courses of action cannot be depended on to stop foreclosure with certainty. Despite fantastic tales on the Internet, very few people get their homes for free because the bank made a mistake, or because MERS is on the title. And in some cases litigation will only delay an inevitable foreclosure. Notwithstanding these warnings, litigation may be a good option for you if you have the rights facts in your case.
Servicers must act in good faith. They may not foreclose non-judicially if you are in the process of being considered for a loan modification. They must inform you if you have been denied a loan modification.They must correctly credit payments you have made. If you are in default, your servicer is obligated to provide you with an accurate payment amount needed to cure any deficiency.
If you believe that you have not been credited with payments you have made, or that the funds were incorrectly applied, you have the right to send your servicer a QWR, or Qualified Written Request, asking them to provide you with a detailed breakdown of charges, payments, and application of those payments. Date your letter and keep a copy. If your servicer does not respond in a timely manner, or does not provide you with the information they are required to give, you will need a copy of the letter you sent.
Also keep detailed phone notes when you speak with your servicer. Note the date and the name of the individual you spoke with, as well as what was said. Good notes and documentation are your allies in a lawsuit.
Contact us to set up a consultation regarding the pros and cons of mortgage litigation in your specific circumstances. And don’t wait until the last minute, or you may find that you are out of time.