The foreclosure forecast for 2019 is that one out of every 2433 homes will go into foreclosure. The top five states for this are predicted to be New Jersey, Maryland, Delaware, Illinois and Florida. These states range from one out of 980 to one out of 1415. New York foreclosures rank among the lowest as only 1 in every 2462 homes face foreclosure.
There is a new trend for foreclosures and that is defense. In the past the courts have tended to lean towards the banks when a case comes up but that is changing, particularly after the mortgage crisis. Now there is still a chance to prevent foreclosure.
The method most often used is to renegotiate the loan so that the payment is more affordable. This may not be easy to do, though many institutions would prefer to keep people in their homes. If this isn’t possible there are things that can be done.
First, get a local foreclosure defense firm who is also a legal expert in this area. No matter how much research is done on Google it won’t take the place of an attorney or a knowledageble consulting firm. He or she can provide all the possible defenses available in each state.
The defense firm will ascertain whether or not the bank has the right to foreclose. There are many instances where they don’t. As an example there are many flaws in the system that allow banks and other financial institutions to practice unacceptable, unorthodox and/or illegal activities in regards to the paperwork.
In order to foreclose the institution has to provide something called a clear link to the title for the mortgage or promissory note. Many loans are bought and sold over the course of time. Each time they change hands records have to be kept. A lot of organizations don’t do that, and if they cannot provide every link in the change the homeowner has an advantage.
There are also documents that have to be signed each time the loan changes hands. In the past the banks have left those signatures blank. The courts are no longer accepting that. In order to get around it there are now robosignatures and reverse engineering, both of which are not legal.
In the hope that they can keep better track of loans many banks employs a company that securitizes the paperwork. However that security means that the documents are separated from the title, which should never happen. The courts will reject this.
Home loans are big business and many of them are sold to corporations that have shareholders. This throws another monkey wrench into the bank’s ability to foreclose. A foreclosure must be between two entities. Shareholders represent thousands of entities and thus make foreclosure difficult.
It is important to emphasize the need for an attorney. Each state has different laws when it comes to loans and what is legal and illegal. Some states have mortgages and others have promissory deeds. This will make a huge difference in how the lawyer addresses the case. While these documents are matters of public record tracing the chain of title takes time and knowledge of where to search.