Want to Stop Foreclosure Dead in its Tracks?
Are you facing foreclosure and would like to learn how to stop foreclosure? If so, this article is designed to give you an honest and concise run down of your options towards stopping foreclosure.
Understanding how to stop foreclosure can be a complex and daunting task. Vince Khan has put together an incredible free eBook (currently sold on Amazon for $12.95) which shows you step by step how to Stop Foreclosure.
How to Stop Foreclosure
If you are facing a pending foreclosure sale, then the one thing to remember is that time is not on your side. There is no time for you to feel depressed or sorry for yourself. You need to take drastic action NOW.
This article 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 and stop foreclosure now.
You Have Three Options to Stop Foreclosure
If you find yourself in a situation where you are about to lose your home, you realistically have three options:
- Try to Work with Your Lender
- File a civil action against your “lender” followed by a motion for a Temporary Restraining Order and Injunctive Relief
- File for bankruptcy protection with an automatic stay
The Conventional Method To Stop Foreclosure
Under this plan, you have two options. You can try to get your house listed and work with a real estate agent to get a short sale. A short sale is one in which your house is sold for less than what is owed to the bank. You will need to get permission fro your lender for this to be approved.
The downside to a short sale obviously is that you lose your house. Another thing to watch out for is that increasingly, most banks are now issuing a 1099 for the difference between the price the house was sold at and what is owed as income. For example, if you owed $300,000 and the house sells for $200,000, then the bank will issue you a $100,000 1099 to the IRS that is reported as your income…which you will need to pay taxes on.
The Loan Modification Method To Stop Foreclosure
Another conventional option is to try to work with your lender to get a loan modification. Under many State laws, a lender can not foreclose on you while you are negotiating a loan modification. Be sure to check with an attorney on this matter.
The problem here is, often times, your lender have no interest in dealing with you fairly. In fact, they make more money when they foreclose on you. Loan Modifications are RARELY given.
In Vince Khan’s Foreclosure Defense Handbook, he outlines how banks have securitized the loans and as such, do not have the authority nor the ability to offer you a loan modification program.
Stopping Foreclosure Using The Temporary Restraining Order (TRO) Method (for a Non-Judicial Foreclosure)
If you are in a Non-Judicial State, if you have proof that your lender broke the law, then you can file a civil action against your lender.
- Examples of this include:
- You have proof that your lender does not own your loan. For example, you closed with ABC Mortgage company, yet someone else XYZ Company is trying to foreclose on you – and there is no chain of title between the original lender and XYZ
- You have proof that you are currently in a loan modification program, and yet your lender is foreclosing on you
- You have proof that your loan has been securitized (meaning your lender sold your loan to Wall St – and no longer owns your loan), but are trying to foreclose on you
Filing a civil action against your lender is not something you should take lightly. It requires a great deal of education. For more information about lender fraud and how you can put up a legal defense, download this free ebook from Vince Khan called “The Foreclosure Defense Handbook”, which shows you step by step how to put up a fight…and win.
Once you have filed for a Civil Action, you can then Motion for a TRO.
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 the foreclosure defense membership program, they have included sample TROs, Injunctive Reliefs as well as sample pleadings that others have used. It is then up to you to simply customize the arguments as it applies to your own situation. You should consult legal counsel before engaging in something like this.
If you are interested in learning how to file for a TRO, you should consult a local attorney (this usually start around $5000 but could run you up to $25,000). If you would like to do it yourself and use our pre-made foreclosure defense template, click here to learn how to Stop Foreclosure Dead in its Tracks.
Motion to Dismiss to Stop Foreclosure (in a Judicial Foreclosure State)
If you live in New York, Ohio, or Florida or other judicial States in which the “lender” has to file a civil action against you to foreclose, then your options are stronger if you have evidence of movement.
Evidence of Movement is when you have closed your loan with an original lender (Bank A) and now another party – the servicer (who has no real interest in the loan at all) is trying to foreclose and who has filed the civil action against you in fraud.
You see, more than likely, your loan has been securitized. This means that your loan is bundled up with thousands of other people’s loans and sold onto Wall St as a Mortgage Backed Security….which mean neither your original lender…nor your servicer actually owns the promissory note. In order for them to actually have Standing (jurisdiction) to foreclose, they must be a real party of interest or the Holder in Due Course of your promissory note. More than likely, they are not.
All you have to do to stop foreclosure if you are in a Judicial State is to file a Motion to Dismiss if your loan has evidence of movement. You simply state in your Motion to Dismiss that your lender of record is the original lender and there is no evidence of a chain of title giving this current servicer the ability to foreclose…ie having any Standing to foreclose.
To learn how to file a Motion to Dismiss, please consult your local attorney. If you would like to use our pre-made template (used by many homeowners to successfully have their case dismissed), simply enter your name and email in the form below to learn how to Stop Foreclosure.
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Stop Foreclosure With The Bankruptcy Automatic Stay Method
To buy time, some homeowners declare bankruptcy to stop foreclosure. When you declare bankruptcy, you receive an automatic stay from all creditors, including the “lender”.
Many homeowners feel this is the easiest 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).
Federal Rules of Bankruptcy 3001 (d) Evidence of perfection of security interest.
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.
To learn more about how to defend your home and stop foreclosure, click on the link below for free foreclosure defense support and information.
We respect you privacy and will not reveal your information to anyone for any reason.
Isn’t it about time you fought for your home. With the information inside the Foreclosure Defense handbook, you can Stop foreclosure dead in its tracks.