X-Banker

The Time Has Come To Fight Foreclosures

September 12th, 2008

By The XBanker

In this difficult real estate market, many investors are advised to just turn in the keys and walk away from a property they can’t afford. The lender will sue for foreclosure, the borrower will not defend the case, and the property will be sold at a foreclosure sale.

In many states the lenders (or, in future years, those bottom feeders who buy such judgments for ten cents on the dollar) will pursue the borrower for a deficiency judgment. Meaning if you owed $400,000 back, you still owe $300,000. Years later you will still have someone chasing you for the money and your problems will continue long past turning in the keys on a failed investment.

It is now becoming clear that your best strategy is to fight a foreclosure. Hire an attorney to defend a foreclosure complaint. There are many defenses to be asserted, including a developing theory of predatory lending practices. As well, there are many appropriate procedural tactics which can be used to delay a foreclosure. When lenders run up against an aggressive defense, they are much more open to negotiating a settlement. They don’t want to spend a great deal of time or money on one case that has become a problem” for them. And as we know, they have a lot of cases to work on these days.

We are hearing of cases from around the country where lenders are becoming frustrated with defendant challenges to their foreclosure actions. Frequently, deals are struck whereby in exchange for the borrower allowing the foreclosure sale to proceed the lender agrees not to pursue a deficiency judgment and further agrees that the property value equaled the loan amount, thus avoiding the tax on forgiven debt. Borrowers are thus able to truly walk away from a property without the nagging concern of someone later pursuing a deficiency judgment or Uncle Sam later wanting money for debt forgiveness taxation. The attorney’s fees of between $2,000 to $5,000 in most cases are a small price to pay for getting clear of tens to hundreds of thousands of dollars in continuing obligations.

The time has come to stand up and fight foreclosures. Gain the leverage you need to release yourself from years of liability. Our office handles foreclosure matters in Nevada and California. In other states you will want to locate a competent real estate litigator in your area. Good luck.

This entry was posted on Friday, September 12th, 2008 at 8:50 am and is filed under General Financial. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Trudy Carney said at January 29th, 2009 at 5:31 pm

   Please contact me in re Foreclosures and possibly suing some mortgage lenders. Also interested if you will handle a case in Northern California. Actually I may have several people who may need your services.

   Trudy Carney
   408-234-4488
   trudycarney@yahoo.com

2. Bhagwan Asnani said at February 21st, 2009 at 6:18 pm

   Could you please recommend a good attorney to fight a possible commercial foreclosure suit in Florida, Orlando.

   Thanks

3. Ernesto Rolon said at June 17th, 2009 at 11:43 am

   The Time Has Come To Fight Foreclosures; What an Excellent title. Please allow me to expand on that same subject. We are currently fighting back against those abusive banks and financial institutions that were the problem on this economic situation we find ourselves in. I live in Southwest Florida and as you may or may not know; we are one of the hardest hit areas in total foreclosures. We are hitting constantly in the thousands per month. The subprime lending scheme really destroyed our economy. This led me to investigate more about the law that are supposed to protect the consumer. Well, I have discovered that there is plenty of protection for the consumer but very few utilize it to protect the consumer and more so the banks as it is not in there favor.

   Did you know that if a bank cannot provide the original contract, they do not have the right to foreclose on any property? This includes copies, these documents need to be originals and they actually bank on you not knowing this and try to slide by within the summons with an action to re-establish a loss Mortgage Note pursuant to the particular law in each state. They are committing fraud if they state within the summons that they have the right and have the appropriate documents to take this action. We have won several cases in various states and have several here in Southwest Florida pending Motion to Dismiss. In those that we won, the final decision by the Judge was that he could agree with the plaintiff and thus put the defendant in position where he would have to pay twice if the original contract surfaced. I would to see if we can work together to help more people.

4. Ernesto Rolon said at June 17th, 2009 at 11:53 am

   You can contact me at:

   erolon@morgem.com

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