There is good news over the past few days that the number of foreclosures nationally have declined, but that does not provide much consolation to the thousands of homeowners who remain in the foreclosure process. Even more disturbing for homeowners who have been sued is the news from the Washington Post that in at least two of the states where our affiliated firms represent homeowners, Ohio and Illinois that those facing foreclosure are deeply under water.
Creating legal leverage to push servicers and investors to to rationalize predatory mortgage loans by reducing principal and interest is more important than ever for homeowners facing foreclosure.
Servicers and Lenders are becoming bolder in try to foreclose on houses where they have a tenuous legal claim based on the failures in the origination, securitization and servicing processes. This makes it even more critical to at least consult a lawyer before a court can issue a default judgment. Too often clients come to us with a case that reveals significant legal issues that could be offered in defense of foreclosure, but after a court has issued a default judgment or summary judgment against them. The barriers remain high to getting a court to look at those legal issues.
At this stage in the foreclosure crisis it is more critical than every to consult with a lawyer experienced in defending foreclosures and suing banks and servicers than ever. The courts operate on strict timelines and a failure to answer could be the difference between keeping a house and losing it.