Just about everybody knows that over the past few years our economy has been in a significant downtrend. Expansive and sometimes very expensive homes were bought with very little money down and they have since lost a substantial portion of their former value. Home owners have lost their jobs, forced to accept lower compensation, and small business owners have seen their income slashed. It's no wonder why so many of our neighbors are facing foreclosure.
Before you decide what Foreclosure Defense strategy might work best for you, it is important that you have a basic understanding of New Jersey Foreclosure laws.
In days gone by, home mortgages were held for the entire life of the loan by the same lender to whom you originally applied. If you had a problem, it was a simple matter to call your local bank manager, explained your situation, and they would try their best to work something out for you. During the last decade "securitizing" home mortgages has made a lot of difference. A mortgage loan that hasn't been combined and sold to investors is a rarity. It's these investors, and not the loan originator, who has the final say on any aspect of your mortgage. They normally retain "servicers", who collect your payments, issue default notices, and in some cases initiate foreclosure proceedings. There are some who receive financial compensation for foreclosures, and therefore they may view foreclosures as an incentive.
Foreclosure defense is basically combating your lender who is attempting to foreclose on your home by either stalling or stopping the process in its entirety. All of this may be a little intimidating, but do not despair, there are ways homeowner can fight back against the foreclosure machine. When these mortgages were sold and bought, the banks didn't necessarily always follow the law. Sometimes critical paperwork has been lost or not completed at all, or may have improper endorsements. In some cases, in the name of expediency, homeowners' signatures were forged. The hasty transfer of the multitudes of mortgages that occurred during mortgage heydays of 2003 – 2008 generated lots of errors and discrepancies. This, indeed, is where foreclosure defense can be best applied.
In New Jersey, foreclosure has to be undertaken with the supervision of the Superior Court. Your lender is required to provide proof that they have the right to foreclose. This gives your foreclosure defense lawyer the opportunity to thoroughly examine the lender's file. He also has the right to ask employees questions concerning the loan. Can the lender provide proof that they own the mortgage and note? Can they produce proper documentation that they have the legal standing to file a foreclosure proceeding. If the loan was sold or transferred, can they provide evidence that the loan was properly transferred? These issues, the lender's right to foreclose and therefore prevent them from doing so.
There have been some cases on record in which, by exposing deficiencies in their processes such as "rubber stamping" of documents has allowed homeowners to retain their homes for months or even years without making mortgage payments. Most foreclosure defense strategies have focused on the shoddy record-keeping performed by lenders. Even if your lender made no errors, your foreclosure defense lawyer can slow down the foreclosure process by forcing your lender to prove their case. This delay could give you the time necessary to affect a more permanent solution.Since errors by lenders are so wide spread, don't try to go it alone. Contact Diaz & Associates, your New Jersey Foreclosure Defense Lawyer.
Diaz & Associates P. A.
309 Fellowship Road
Mt. Laurel, NJ 08054
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