VIDEO: How to Fight a Wrongful Foreclosure
“You cannot rely on the lender to do the right thing” in a home foreclosure, warns Los Angeles attorney Ros Ostrin. When it comes to fighting a lender, you should “Get help early, because that’s the best way for you to get the best result.”
Because of “robo-signers,” home foreclosures are making headlines across the US, especially in California, Florida and Arizona. You may get a default notice from the bank or mortgage lender even if you’ve made all of your payments.
How Can This Happen?
Mistakes occur because mortgage companies do not have real people looking over the loans, according to Ostrin.Your mortgage may have also been sold to another lender, and the records didn’t fully transfer over, or were lost or misplaced.
Homeowners must be alert if to receiving any legal documents – from your lender, the trustee or the Recorder’s Office – that even remotely suggests there might be a foreclosure coming.
If the lender has mistakenly sent you a foreclosure notice about your property, put them
on notice, Ostrin recommends. Make them show you their evidence. “They will be guilty of a wrongful foreclosure and they proceed at their peril,” he says.
Be sure to keep evidence and records of payments and communications with your lender. “I would digitize them. If you have the proof, you can stop the foreclosure,” Ron emphasizes.
Filing for bankruptcy is another option when faced with foreclosure. Bankruptcy is a powerful tool. “It creates an automatic stay, which will temporarily stop the foreclosure sale.”