Did you that foreclosure defense is a big developing area of the law? But what exactly is foreclosure defense? Foreclosure defense is essentially fighting every aspect of home foreclosure.
It usually begins with a lawsuit filed against the bank that owns the note on your house. The lawsuit is based upon the contention that the bank does not have the right to foreclose on your house. Seems odd…but it is based upon the fact that nearly all mortgages have been sold and transferred multiple times. The foreclosure lawyers state the in most cases proper transfer (assignment) papers were not completed at the time of transfer. This happens because banks usually sell off hundreds, if not thousands of mortgages at the same time. It would be extremely inconvenient for them to follow proper protocol. If a foreclosure sale is looming, a lis pendens is filed notifying any potential buyers of the pending lawsuit.
After the lawsuit is filed, the battle begins. Although the vast majority of cases are eventually won by the bank, the litigation process can take a very long time, thus making it inconvenient and costly for the banks. According to some foreclosure defense attorneys the banks usually win even though they cannot show that the transfers were legitimate because courts are reluctant to rule in favor of the homeowner. Although it may seem odd, it makes sense from the standpoint that it would create a flood of lawsuit and homeowners being essentially excused from their mortgages.
This fight can happen in both a civil court such as the Los Angeles Superior Court or a bankruptcy court through an adversary proceeding.
When the lawsuit is finally finished and the foreclosure (trustee) sale has occurred. The foreclosure defense attorneys then usually defend the homeowner against an unlawful detainer action. Based upon the facts and the judge, this can take many months as well.
Although foreclosure attorneys state that delay is not the goal of the action, it is clear that time is a big part of what the homeowner is getting out of all this because of the high success rates of banks in defending against such actions. Also if the lawsuit is not immediately dismissed by the court, a settlement may be reached with the bank. And sometimes a loan modification is part of the settlement. But the homeowner should always go into foreclosure actions prepared to eventually move from their home. If you have any questions, a Glendale Bankruptcy Lawyer can help.