Foreclosure Defense: Knowing Your Rights

Until relatively recently, it was very difficult for homeowners to successfully fend off foreclosure. Economic conditions since the housing crisis and the Great Recession of 2008-09 have changed things, particularly in light of misconduct and errors on the part of lenders. This has led to courts having greater sympathy for homeowners facing foreclosure. Today, there are a number of options for foreclosure defense Columbia MD that can help you to remain in your home.

How Can a Foreclosure Attorney Help?

Because courts today are more likely to side with homeowners, an attorney has a number of different options available when it comes to mounting a defense. For example, in a number of cases, the mortgage company failed to follow proper procedures under state law or made serious errors in servicing the loan.  

Another common situation that has arisen in the past is when the bank or mortgage company has no standing, i.e., they cannot prove they hold the loan. The reason this happens is that mortgages are frequently “bundled” and sold — repeatedly. Documentation gets lost, or the transfer of ownership is not done properly. These days, lenders are much more careful about such details, so this kind of foreclosure defense is less likely to be an option. 

Do You Serve in the Military?

Servicemen and women on full-time active duty with a branch of the U.S. armed forces enjoy special rights under the  Servicemembers Civil Relief Act (SCRA) when it comes to foreclosure.  Among other things, the SCRA protects service personnel from foreclosure during their service. In addition, the law caps the interest rate on loans at 6 percent, provided the loan was taken out prior to going on active duty status.

The SCRA also applies to commissioned officers working for the Public Health Service and the Oceanic and Atmospheric Administration.