There are countless reasons why a homeowner may have problems making mortgage payments. It is an all too common scenario for people across the country, Illinois residence included. It can be scary to receive notice from your lender that they are initiating foreclosure proceedings due to non-payment. Do not lose hope. There are several ways to delay foreclosure and save your home. If you have fallen behind on our mortgage payments and are potentially facing foreclosure in the future, M&A Law Firm will do everything possible to help save your home.
What Are Some Potential Defenses to Foreclosure?
If you are potentially in the midst of a foreclosure action, a good place to start for possible defenses to the foreclosure is looking at the actual terms set forth in your mortgage and note. The terms will notify you of the legal requirements your lender needs to comply with. Failure on the lender’s part to meet these requirements may be a possible defense to the foreclosure. Other possible defenses include:
- Lack of standing: In order to bring a foreclosure action, the lender must be able to show that they have standing. This means that they are registered to conduct business in Illinois and that they have a vested interest in the mortgage and note. Sometimes, the bank is unable to prove that it owns the mortgage and, thus cannot prove that it actually has standing to bring the foreclosure action.
- Truth in Lending Act (TILA) Violations: TILA is a federal law put in place to encourage informed use of consumer credit. It requires disclosures requiring the calculation, costs, and terms relating to borrowing. TILA violations can invalidate a mortgage. This means that not only would the foreclosure action terminate, but the lender may be forced to return all interest and fees paid on the loan. This could happen if the lender failed to clearly itemize the financing amount when it would involve a lien or security interest on the principle dwelling. Another violation would be if the lender did not expressly and accurately disclose the payment schedule for the loan, including the number of payments and the amount of each payment.
- Mortgage servicer errors: It is the responsibility of mortgage servicers to complete administrative tasks associated with processing and disbursing mortgage payments. Mortgage servicers are also tasked with enforcing the terms of the loan. It is not uncommon for the mortgage servicer to make a mistake that may delay, if not completely do away with, a foreclosure action. In some instances, the mortgage servicer may have been crediting your mortgage payments to an incorrect account. This would wrongfully lead to your account as showing up delinquent. In other cases, mortgage servicers have charged improper fees or may have led you to believe a much higher amount than needed was required to have your mortgage reinstated.
Defending Your Home in The Midst of Foreclosure
Facing foreclosure means facing the possibility that you may lose your home. It is a scary and overwhelming experience that is filled with legal complexities. M&A Law Firm, P.C. is dedicated to fighting for our clients in the midst of foreclosure. We are here to fight for you and your home. We proudly serve Cook County and Schaumburg, Illinois.