Foreclosure is a state where the Creditor (to whom the property is mortgaged) takes full benefit by seizing and selling (mostly auction) the property which is mortgaged. This can be enforced by any Bank or approved creditor. Regardless of other cases, foreclosure requires an effective and efficient defense as this is a question of ‘ownership’ of the property mortgaged.
However, one must understand that there are rare kinds of creditors in good interest of the debtor may make adjustments in foreclosure agreements, So that the debtor can retain the ownership of the property. This is allowed in almost under every law system and it is formally known as ‘Mortgage modification’.
Foreclosure is basically of two types:
- Judicial foreclosure
- Non- judicial foreclosure
Homeowner may finger point at the creditor by raising the issue of state procedure being not compiled like issuing notice or communication of the foreclosure of the property in question.
Note: This is a strongly acceptable defense as failure in formal communication to the debtor regarding the foreclosure might end up in serious results against the creditor.
The Homeowner has agreed upon on some interest rates which he would pay regularly to the creditor and due to various reasons even the debtor agreed for increase in interest, this might be used as a defense for the interim vacation of foreclosure order.
In most of the cases there are agents who are employed by the creditors for understanding the debtors. In that case a Principal agent relationship is formed between them. All formal communication between the creditor and debtor takes place via the agent appointed. So if there is any communication delay among the three parties, this could also contribute to an effective foreclosure defense.
Suing your lender: For most of the lending corporations it shakes their brain if they are sued by a single individual. Of course sue with valid proof as mere allegations won’t be effective in legal process.
Service Chamber relief Act or a similar kind of enactment which is exclusively available for military men in almost under every legal system provides you with certain immunity regarding the mortgaged property in the time of foreclosure.