Served with a foreclosure lawsuit?
You have 20 days to respond.
It makes sense that many people who find themselves facing foreclosure believe they have no options, and simply walk away from their home once the lawsuit begins. However, you should understand your rights and what the bank must prove before they can take your home from you.
While it is likely the case that you have not made a mortgage payment in a while, that fact alone does not automatically entitle the bank or lender to possession of your house. With the assistance of attorney, you can put forward a series of defenses and force the bank to prove its entitlement to foreclose on your property.
For instance:
Standing
Any bank that wants to foreclose on property in Florida must prove that it actually owns the promissory note you signed when you purchased your house. You are likely one of the millions of homeowners that has seen their note and mortgage pass between multiple banks and financial institutions over the years.
This happened at a very high volume, and because of that many institutions did not take proper care to document these transactions. This means they often cannot produce sufficient evidence to satisfy the court that they are the bank entitled to take your property.
Condition Precedent
There is a provision in many mortgages, often found in “Paragraph 22,” that provides a very important tool to homeowners in foreclosure. This paragraph simply states that the lender must send you a letter notifying you that you have defaulted and giving you a certain number of days to bring your mortgage current. Courts are holding the banks to this paragraph, and if you did not receive this letter your case is subject to dismissal.
Depending on your particular situation, you may have other defenses you’re not yet aware of that you are entitled to put forward. There is no reason to let your lender take back your very valuable property without doing the work the law commands them to do.
Even if you don’t have a “winning” defense that dismisses your case, participating in the process and fighting back against the bank will give you time to figure out your next steps. It may also open the opportunity for a loan modification, an agreed upon move out date, a deed in lieu of foreclosure, etc. If you decide to ignore the lawsuit, you essentially agree with the bank’s claims and will be put out of your home much faster than if you had defended yourself.
At Affordable Legal Group, we understand that homeowners facing foreclosure are not in a position to hire a market rate attorney. We offer a variety of fee arrangements that take your financial situation into account. We are a non-profit, and are committed to increasing access to our justice system, and we want to help you defend your foreclosure lawsuit.
Call us today for a consultation at (727) 317-6770, or send an email to sarahj@affordablelegalgroup.org and we’ll be in touch with you shortly to discuss your case.