When times get tough, it is common for people to fall behind on their bills. This is especially true during the coronavirus pandemic, when many businesses remain closed and people remain out of work. As a result, many people are now facing foreclosure on their homes due to being unable to pay their mortgage. Fortunately, there are some things you can do to protect yourself and keep your home. Here are five ways you can defend yourself from foreclosure:
Partial or full payment
One possible defense against an attempted foreclosure is that you have already paid back some or all of what you owe on your mortgage. After all, foreclosure is meant to be a response to failing to pay a mortgage back. So if you can prove you have already paid back at least some of what you owe, you can cut the foreclosure proceeding short. Or, at the very least, you can delay your foreclosure for a little while longer.
Improper service of process and complaint
There is a complicated set of procedural requirements that a mortgage holder must go through before they can begin foreclosing on your home. First, they must do something known as “service of process and complaint,” which means giving you formal notice that you are being foreclosed on. In New York, they must also give you a “Help for Homeowners in Foreclosure” notice along with the service of process. On top of that, you are supposed to be given a 90-day pre-foreclosure notice before they can begin foreclosure proceedings. If the mortgage holder messes any of this up, it can delay or end the foreclosure against you.
The mortgage is illegal
Another way you can protect yourself from a foreclosure is to claim the mortgage itself was somehow illegal. There are several reasons why a mortgage might be illegal. For example, the mortgage broker might have lied to you about the terms of your mortgage. Another example would be if you were given a higher interest rate than you qualified for with your credit. Whatever the reason, however, you must be specific about what you believe is illegal about the mortgage. If you are correct about the mortgage being illegal, you may be able to escape foreclosure entirely.
Active service member owns the property
There are special legal exceptions for people currently serving in the United States military when it comes to foreclosure. Put simply, a mortgage holder cannot foreclose on someone currently in the military. However, it is not enough to have an active service member in your household. They must own the household, meaning their name must be on the mortgage. If they are, though, you can shield yourself from potential foreclosure.
Homeowner is mentally disabled or incompetent
But you can defend yourself from foreclosure if you can prove the mortgage agreement was signed by someone who was mentally disabled or incompetent at the time the mortgage was signed. Put simply, you are alleging you cannot be held accountable for signing for the mortgage because whoever signed the contract was not in their right mind. Unfortunately, this can be difficult to prove, especially if the mortgage was not obtained recently. It also means you may need to seek a guardian ad litem for whoever signed the mortgage, unless they have somehow recovered from their mental impairment. If you can prove this, however, you may be able to protect yourself from foreclosure.
At David J. Lorber & Associates, PLLC, we assist clients throughout New York who are at risk of losing their homes to foreclosure. We will explain your options and guide you in making the best decision for your circumstances. Call us at (631) 750-0900 or contact us online to schedule your Free consultation at our Setauket office.
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