When is litigation an option to stop a foreclosure?

One of the many foreclosure defense options is litigation. You can use litigation to stop a foreclosure. You can sue to enjoin a foreclosure before it occurs. When you receive the foreclosure notice from court, scrutinize the steps taken by the lender. Check for loopholes. If you find any loophole, you can challenge the foreclosure. You can also challenge the Sheriff’s appraisal and ask for your home to be removed from the Sheriff’s sale. Even if you do not find any loopholes, you can prolong the process by simply asking the court for time. The court will generally grant you 30 days.

In some states you can file a complaint in a court and request for an injunction. Generally you will be required to give notice to your lender. You must show an immediate and irreparable damage or loss. You may be required to post a bond.

You can also challenge a foreclosure that has taken place and request for it to be set aside. However to have a foreclosure that has taken place set aside, you must show that there was irregularity, misconduct, fraud, or unfairness on the part of the lender or the trustee. Generally a foreclosure that has taken place will not be set aside but if the court finds that the lender erred in foreclosing the home, then it will grant damages to the homeowner.

If you are facing foreclosure, consult with an experienced foreclosure attorney. The attorney can scrutinize the steps taken by the lender for loophole and use the loopholes to stop the foreclosure.