Judicial Foreclosure: Fighting a Foreclosure Claim in Court

In the United States, each state has its own mortgage laws regarding foreclosure procedures. States that use a judicial foreclosure system require the bank to seek court approval before going ahead with the foreclosure. In judicial foreclosure states, a lawsuit will be brought by the bank against the homeowner.

In these states, the foreclosure process is closely monitored, which gives homeowners more options when it comes to delaying or halting a foreclosure, as well as eviction.

Judicial foreclosure proceedings usually begin after a homeowner has missed at least three payments and has been sent a breach letter or notice of acceleration, informing them that payment must be made to avoid legal action. If the homeowner disregards these notices, the bank can seek a default judgment, which will allow the foreclosure sale to proceed. Some states afford a redemption period during which the homeowner can buy back the home prior to the foreclosure sale.

According to Nevada foreclosure attorney Taylor L. Randolph, “Many homeowners who are late on their payments are afraid that someone will come and evict them from their homes, lock their doors or take their belongings. In reality, your house is yours unless and until a judicial foreclosure process has fully run its course, and that process can take years.”

There are many issues that a homeowner can raise to defend themselves from a judicial foreclosure.

“The homeowner, the defendant, has the right to defend the foreclosure by conducting discovery, raising defenses, and filing counterclaims, that is, suing the lender under various causes of action. The homeowner can make the lender prove the default occurred, prove the amount owing, dispute the lender’s allegation that the homeowner is not eligible for a mortgage modification, and raise other claims and defenses,” says Russell A. DeMott, a South Carolina bankruptcy attorney.

Judicial Foreclosure: Fighting a Foreclosure Claim in Court

In the United States, each state has its own mortgage laws regarding foreclosure procedures. States that use a judicial foreclosure system require the bank to seek court approval before going ahead with the foreclosure. In judicial foreclosure states, a lawsuit will be brought by the bank against the homeowner.

In these states, the foreclosure process is closely monitored, which gives homeowners more options when it comes to delaying or halting a foreclosure, as well as eviction.

Judicial foreclosure proceedings usually begin after a homeowner has missed at least three payments and has been sent a breach letter or notice of acceleration, informing them that payment must be made to avoid legal action. If the homeowner disregards these notices, the bank can seek a default judgment, which will allow the foreclosure sale to proceed. Some states afford a redemption period during which the homeowner can buy back the home prior to the foreclosure sale.

According to Nevada foreclosure attorney Taylor L. Randolph, “Many homeowners who are late on their payments are afraid that someone will come and evict them from their homes, lock their doors or take their belongings. In reality, your house is yours unless and until a judicial foreclosure process has fully run its course, and that process can take years.”

There are many issues that a homeowner can raise to defend themselves from a judicial foreclosure.

“The homeowner, the defendant, has the right to defend the foreclosure by conducting discovery, raising defenses, and filing counterclaims, that is, suing the lender under various causes of action. The homeowner can make the lender prove the default occurred, prove the amount owing, dispute the lender’s allegation that the homeowner is not eligible for a mortgage modification, and raise other claims and defenses,” says Russell A. DeMott, a South Carolina bankruptcy attorney.

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