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What Is Foreclosure Defense & How Can It Save Me From Filing Bankruptcy?

Ferguson Hayes Hawkins, PLLC Jan. 25, 2017

Over the past decade, the number of Americans struggling with foreclosure has increased by a large amount and is predicted to continue to grow. In most cases, the homeowner is at a disadvantage because the lender, typically a bank, has experience with the law, understands the process and employs experts to ensure that they win. However, foreclosure defense attorneys are becoming more prevalent and are giving homeowners an alternative to declaring bankruptcy. Understanding the foreclosure process and the strategies used to defend against it is essential when facing a mortgage default.

The Simple Way to Keep a Home

The easiest and most effective way to stay out of foreclosure is a mortgage modification. This is done by renegotiating terms with the lender. Concord NC lawyers are well-versed in the modification process, and they can ensure the best results. When modifying a mortgage, foreclosure defense attorneys attempt to negotiate for reductions in interest rates, monthly payments and the overall principal. They also try to eliminate late fees and penalties.

Expose Lapses in the Chain of Title

Bankruptcy attorneys in Concord NC have a few other tricks up their sleeves when it comes to foreclosure defense. One common method foreclosure defense attorney’s use is to show a lapse in the chain of title. Basically, any mortgage or deed must show an explicit line of ownership of the property from beginning to end. This means they have to be recorded with the courts in the county that they were bought and sold. To keep up with the huge demand, lending companies and banks created a privately held company called MERS (Mortgage Electronic Registration System). This company is supposed to track and record when a property changes hands. However, bankruptcy attorneys in Concord NC understand that many courts do not acknowledge MERS as a legitimate source for deciding title ownership or initiating foreclosure. Because they have no financial interest in the properties nor do they record transactions with the county clerks, many courts have ruled against MERS and have found that the chain of title has been broken.

Concord NC lawyers understand how to defend against foreclosure. This is putting some power on the homeowner’s side. With the rate of foreclosures continuing to grow, working with bankruptcy attorneys in Concord NC can mean the difference between keeping a home or losing it to a bank or lending company.