Foreclosure Defense

Foreclosure Defense

Foreclosure Defense – While the traditional method for addressing foreclosures or threatened foreclosures has been to file a Chapter 13 bankruptcy, which permits one who is being foreclosed on to pay their mortgage arrearages over a 5 year plan, an emerging area of defense to foreclosure, which Mr. Flynn has now begun pursuing, is to defend the judicial foreclosure (where you are served with a lawsuit) or the statutory foreclosure (where a Notice of Default is published in the newspaper) by forcing the mortgage servicer to prove that they have standing to pursue the foreclosure.

In today’s world of securitization of debt instruments, such as mortgages, and even automobile notes, many times a mortgage is transferred or sold many times before a foreclosure is initiated. In some circumstances, the mortgage holder has not done their paperwork properly, or they may not have even bought your mortgage at all. In other circumstances, a mortgage servicer is acting on behalf of undisclosed investors, which investors should be the true parties-in-interest.

In some cases, homeowners have been able to walk away from their mortgages, owning their homes free and clear, for these reasons, as well as because of mortgage servicing abuses.