Legal tip to delay or even avoid foreclosure

[mckitterick]

verminiusrex suggests a way to delay foreclosure long enough to get your finances in order:

"Demand to see the note that proves that the mortgage company is owed the money. With so many trades and mortgages being bought in bulk, the companies often don't know where the paperwork is, so saying 'Produce the note' can apparently delay some foreclosures, since the companies are going to go after easier pickings first. Lawyers say that it's a good stalling tactic that may work to get finances in order, but eventually they usually find an electronic copy that is accepted in court."

I hope that none of you are facing this problem, but if you or someone you know is, this might help. Spread the word!

Best,
Chris

Comments

[tully01.livejournal.com]

Yep--if they sue for foreclosure and you don't stipulate to all the facts (and you SHOULDN'T) they have to prove you actually took out AND SIGNED the mortgage documents that they're suing over.

But it gets even better! In many cases, they can't find the original documents at all. The loans have been sold and re-sold so many times and so much time has passed that they can't be located even if they still exist...and sometimes they don't, but have been lost or destroyed. A few judges also balk at accepting electronic copies rather than originals, when there is any doubt, which can give you additonal leverage to work out the loan without losing the house.

So rather than losing your home to that foreclosure suit, there's a decent chance you can end up owning your home free and clear thanks to their suing you and being unable to prove their claim! And no matter what, even if they dig out the goods, you've still bought some time and maybe some bargaining leverage. :-)

[roya-spirit.livejournal.com]

Also.. something that most folks don't know:

Even if the house is sold in foreclosure, in Kansas the original owner has a year to get finances in order and reclaim the house.
Gee, yay for something decent in Kansas, eh?