23 Legal Defenses to Foreclosure

Our lawyers aggressively pursue claims and defenses on behalf of our clients. This helps us get the best deals for our customers. In general, the “Produce the Note” defense is a type of legal protection that is often cited against foreclosure actions. This is the approval of the promissory note, which is signed with the mortgage document. For example, if a borrower applies for a loan to pay for a house, they are asked to sign both a promissory note and the mortgage document itself (i.e., the escrow deed). Since many mortgages are typically sold to other banks, an owner may use the “Produce The Note” defense and require the executing bank to provide proof that it is in possession of the original promissory note and therefore has the legal authority to close the property in question. To file a defense against a foreclosure action, an owner must assert a specific defense in court. If enforcement is sought through a judicial sale of seizures filed with the state court, the owner must obtain the consent of a judge`s defense. Our clients work directly with a licensed attorney on their foreclosure case to ensure it is handled appropriately. Attorney Troy Doucet “wrote the book” on the foreclosure defense and is a lawyer who knows these areas of law.

He published 23 Legal Defenses to Foreclosure: How to Beat the Bank in 2008 (watch out for our update soon) and he helps families who have been facing foreclosure since the inception of Doucet Gerling Co., LPA. Troy Doucet and Andrew Gerling both graduated at the top of their law classes and are highly-rated foreclosure advocates. Our defense lawyers and foreclosure law firms are committed to helping families find the best solution for foreclosure. We are known for our excellent legal work and excellent results. [4] www.nolo.com/legal-encyclopedia/what-does-loss-mitigation-mean.html#:~:text=The%20term%20%E2%80%9Closs%20mitigation%E2%80%9D%20refers,be%20beneficial%20for%20the%20investor. Jaclyn joined LegalMatch in October 2019. Your role is to write legal articles for the Law Library department, which can be found on the LegalMatch website. Prior to joining LegalMatch, Jaclyn was a paralegal and freelance writer. After working for several years for law firms specializing in criminal defense and entertainment, she enrolled in law school. During his law studies, his legal journal note was selected for the first publication and can be found in various legal research databases.

Jaclyn holds a J.D. from benjamin N. Cardozo School of Law, specializing in intellectual property and data law; and a Bachelor of Arts degree from Fordham University with a specialization in Journalism and Classical Philology (Latin). You can read more about Jaclyn here. [7] www.findlaw.com/realestate/foreclosure/foreclosure-by-judicial-sale.html The improper service of the proceedings is included in the second defence listed, the absence of personal jurisdiction. While Rule 12 of paragraphs (b) and (g) clearly provides for the combination of one or more of these defences into a single motion or pleading, this does not mean that one of the listed defences may be raised or obtained by filing one of the other listed defences. Federal home loan Mortg. v Dutch Lane Associates, 775 F. Supp. 133 (S.D.N.Y. 1991)law.justia.com/cases/federal/district-courts/FSupp/775/133/1555332/ However, it should be noted that the promissory note is the actual promise to repay the mortgage, not the mortgage document. As such, the ticket owner is the only party who has the legal right to enforce the promise contained in the ticket and to recover the claim.

The mere idea that you might lose your home is a very scary and stressful thought. This case can get even worse if you don`t think you have a way to defend yourself against foreclosure. However, there are some legal defenses you can use if you are facing a foreclosure lawsuit. In United Central Bank (plaintiff) v. Bhavani Fruit and Vegetable LLC (Bhavani Fruit) (defendant), Bhavani Fruit was in default with two banknotes, prompting United Central Bank to file an application for enforcement. However, during the course of the enforcement action, it was alleged that the applicant did not use a rent recipient to claim the rent due, which had a monthly value of $18,000. The final judgment in enforcement was $5,145,464 for the plaintiff, but the judge awarded only $195,309 due to the fact that the plaintiff did not mitigate the damages, among other things, by not naming a tenant or trying to appoint a tenant to collect the rent. The applicant was not entitled to the money he could have received if he had opted for a tenant. The judge`s reasoning in support of this decision was that the plaintiff had an obligation to use a tenant under an article of an assignment of rents and leases executed for one of the defendant`s properties. However, the Court of Appeal held that the judge erred in that judgment and that the assignment did not impose such an obligation on the applicant. In addition, the judges said on appeal: “The protocol needs to be developed more comprehensively on whether the plaintiff has not mitigated his harm by not filing the claim in a timely manner or on another reasonable basis.

[6] The plaintiffs allege that they objected to Chase`s promise to permanently change their loan by repeatedly contacting Chase, repeatedly preparing documents at Chase`s request, ceasing to pursue refinancing efforts with other financial institutions, or seeking other ways to avoid foreclosure, and by losing their house and making it unlikely, that they could buy another one. Consequently, the applicants reasonably invoked an unfavourable expectation in order to maintain a ground for refusal of guilt. Pfeifers have a mortgage that is insured by the FHA, and the terms of their rating and mortgage are subject to the mortgage service requirements under hud. In their plea, the Pfeifers claim that lenders began seizing their assets without complying with hud maintenance requirements because they did not have face-to-face interviews with them, as required by the Code of Federal Regulations. “In contract law, `a condition precedent is either an act of a party that must be performed or an uncertain event that must occur before the contract law occurs or the contractual obligation occurs`. [Quote.] The existence of a condition precedent usually depends on the intention of the parties, as it results from the words they used in the contract.

Scroll to Top