How to Stop a Pending Foreclosure

If you are facing a pending sale, then you need to take drastic action NOW.  This module is designed for those of you wanting to be able to stay in your home to give you time so you can fight foreclosure fraud. If you find yourself in a situation where you are about to lose your home, you have two options legally.

We have found an AFFORDABLE FORECLOSURE DEFENSE SPECIALIST attorney who is very effective at stopping sales in all 50 States.  What’s more, they take payment plans so you can spread the payment over a number of months.  For more info, click here.

Seriously, these guys are GOOD! And I’ve negotiated a killer price for members of Consumer Defense Programs.

One is to file a Quiet Title action against your lender followed by a motion for a Temporary Restraining Order and Injunctive Relief.  The other is to file for bankruptcy protection with an automatic stay. Firstly, in order for a TRO and/or an Injunctive Relief to be granted, the petitioner has to show a strong likelihood of success.  This means that as a Plaintiff, you will need to bring compelling evidence to convince the judge that you deserve a stay of the sale.  It is your job to bring significant controversy that brings doubt as to who the real party of interest is in the foreclosure action. Obviously, having a securitization audit would be hugely beneficial as well as a pleading/complaint that argues the points and authority that the pretender lender is not the real party of interest.  However, this takes time.  Time you might not have. Crafting a pleading takes time and requires great care.  It is not something that can be rushed.  You should consult your lawyer as to the proper method and process for this. If you are a member of our foreclosure defense membership program, we have included sample TROs, Injunctive Reliefs as well as sample pleadings that others have used.  It is then up to you to customize the arguments as it applies to your own situation.  Be warned.  You do so at your own risk.  These sample documents do not come with any assurances whatsoever.   You should consult legal counsel before engaging in anything like this. Sadly, TROs are RARELY granted (especially in California).  The Plaintiff has to bring an overwhelming amount of evidence to cast significant doubt to the judge for one to be granted.  That is why many people turn to the bankruptcy method instead.  Also, while you are under a TRO, often times, the judge will still require you to make regular payments to the bank.

Recently, the Comptroller of the Currency issued a Stop order fro all of the top 14 servicers from foreclosing until they have undergone a review of their foreclosure procedure AND all future foreclosures have to verified by an independent third party. Our members have been able to have their foreclosures STOPPED and Dismissed based on this consent order alone! Go Google this up.  Look for “Bank Consent Order Comptroller of the Currency”.  If you are a member of the foreclosure defense membership program, we have included all the consent orders in your kit. You will want to file a Quiet Title Action, and include “for mandatory judicial notice” and include a copy of this consent order as it applies to your “lender”.  Inform the judge that there is a stop order for the banks until they have reviewed their foreclosure procedure…and an independent third party has verified the procedure.  Inform the judge that this was never done to your knowledge, and ask opposing counsel to stipulate for the record (with first hand knowledge) that this was done in your case.  And if it wasn’t/hasn’t been done, then this foreclosure is in direct violation of the stop order and therefore a TRO must be put in plance. As a member of the foreclosure defense membership program, you will have all the forms necessary to file a Quiet Title Action, a Temporary Restraining Order (TRO) as well as the template to “motion for mandatory judicial notice” of this stop order.  For more information, click here.

To buy time, some homeowners declare bankruptcy.   When you declare bankruptcy, you receive an automatic stay from all creditors, including the “lender”. Many homeowners feel this is the best and most assured way to stop the sale from happening. Be warned.  Bankruptcy is not for the weak hearted.  Do not enter bankruptcy lightly. You will need to declare all your assets, income and financial details.   It is like having a permanent anal probe of your financial details.  It is not pleasant. Never ever lie, especially in bankruptcy court.  You will go to jail.  As great as it is the temptation to hide the precious little money you have from your creditors, don’t do it. The other down side of bankruptcy is that it is a mark in your public credit score.  But frankly, having a bankruptcy or a foreclosure these days is not as big a deal as it once was.  Almost half the country has been through it.  It’s like being a leper in a leper colony.  It’s not as big a deal anymore. Fact is however, for most homeowners, this might be the only way to keep their house from the auction block while they buy time to build their case for their foreclosure defense. The other thing about bankruptcy is that in our experience, we have found that most of the wins come from the bankruptcy courts.  The thing about bankruptcy is that it has the nice Rule 3001(d).

If a security interest in property of the debtor is claimed, the proof of claim shall be accompanied by evidence that the security interest has been perfected.

It requires the lender to provide proof of claim. This means that the table is suddenly turned.  It is now the “lender” who has to come up with the proof of claim.  And if you know how their fraud is being perpetrated, then you know how to object and deflect their deception. What many people do after they file for bankruptcy is to the file an adversary proceeding. As a debtor, this is absolutely free.  An adversary proceeding is like a normal civil action, but done under bankruptcy court, and under bankruptcy rules.  It allows the debtor to challenge the bank to provide proof of standing.  As a member of the foreclosure defense program, you will have access to sample pleadings others have used in their adversary proceedings to challenge their lenders to produce proof of claim (as well as specific step by step instructions on how to file such a claim). The other thing many homeowners do is to file their house as an unsecured debt.  This will then prompt the lender to complain.  But in doing so, they are then required to provide proof of claim, which they often are unable to. Navigating the bankruptcy process is not for the weak hearted.  Even for someone who has a lot of experience in legal procedures.  We highly (seriously, HIGHLY) recommend that you get competent help.  Look, we are here to save you money.  If we HIGHLY recommend something, we mean it.  Some things, you can cut corners with, bankruptcy is something I don’t recommend that you do on your own.  Trust us when we tell you that one of our members tried to do it himself.  It was a disaster.  He wished he had professional help. Normally, hiring a law firm to handle your bankruptcy costs around $2000 to $4000 for Chapter 13.  We found a company (not related to us) that specializes in preparing bankruptcy documents for foreclosure defense who can do it for less than $1000.  There are many specific details a bankruptcy specialist who knows about foreclosure defense that can help you with that a normal BK attorney cannot.  Such as specific methods to declaring your assets and how to keep you in your house for months, if not years while you go through your legal procedures.

1) BK IS A PAIN IN THE ASS.  It was never designed to be fun.  Filing BK means you have to declare everything.  What you eat, how many times you poop and all the gory details (not quite but you get the point).  NEVER LIE in BK.  You WILL GO TO JAIL.  I will release more info about the process of filing for BK as soon as I get a chance, in the mean time, come check out this site: http://www.legalconsumer.com/ << VERY GOOD SITE!! BOOK MARK THIS ONE. This site walks you through everything you need to know about doing BK yourself. If you wish to file BK yourself, here’s a really good site/resource for you to get assistance and someone to look over your shoulders to make sure you do it right: Bankruptcy Preparation Service 2) You *SHOULD* not do this if you’ve previously filed BK in the last 7 yrs.  I think 10yrs in Chapt 7. 3) You *SHOULD* only file for BK protection (and then dismiss) every 180 days.  The court does not want you to abuse this system. 4) Many homeowners list the bank as an UNSECURED NON CONSUMER DEBT.  It is up to them to prove it.  This is the key. 5) This is gut wrenching stuff.  Make sure you have a good support network so you can get help.  If you haven’t done so, hook up with someone in the Local Meet up directory.   REACH OUT.  HELP OTHERS!  We need each other.  You don’t have to do this alone. 6) Most important. You can only do this Adversary Proceeding process in Chapter 13.  ie. YOU CAN NOT DO ADVERSARY PROCEEDING IN CHAPTER 7.

Look, time is not on your side if you are facing a pending foreclosure action.  You must take decisive action NOW. Decide which option works best for you, whether to file a civil action and motion for a TRO or to go for a Chapter 13 bankruptcy. 1) If you wish to file a civil action, you will need to know what you are doing.  It is best to talk to a lawyer about filing a civil action.  If you can not afford a lawyer, you might want to join our foreclosure defense membership program.  We include sample civil action pleadings other homeowners have used in the past as well as provide resources on where you can go to get the help you need to learn the ropes of the legal landscape.  Click Here for more information. 2) If you wish to file for a Chapter 13 Bankruptcy for the automatic stay, then we highly recommend that you use a Bankruptcy Preparation Service.  Normally, it will cost you $2000 to $4000 for an attorney to do this.  But we have found a service provider who specializes in helping homeowners with their Bankruptcy paperwork for only $1295. Click Here for more information.  If you are a member of the Foreclosure Defense Membership program, you can order this service for only $995 (in Module 0). 3) Send a Notice of Default Rebuttal Letter to your Trustee to give them notice that you are holding them personally responsible as co-conspirators in the fraud.  You are requiring them to validate and certify that in fact, the person who is foreclosing on your house is in fact the true and beneficial real party of interest.  You can get this sample letter from ourResources page. Or, you can do nothing and live in denial, and hope for the best….