Another Foreclosure Defect?

Michigan homeowners may have another defense to foreclosure by advertisement.

It seems yet another foreclosure shortcut taken by the mortgage companies has been uncovered.

A Nevada attorney has challenged a foreclosure there on the basis that the default notice was defective, in that the sender had no idea whether the mortgage was actually in default.

In most states like Michigan which allow non-judicial foreclosure, a notice of default letter still has to be sent before the actual foreclosure sale can be scheduled.

The problem is still, you have to be in a court to raise this issue, like the who owns the note defense, or robo-signer involvement invalidating the foreclosure process with false affidavits.

These defenses work better in judicial foreclosure states, where the mortgage company has to file a complaint, go to court, and prove their case.

They just have to send in the money and the wording to foreclose by advertisement.

Now, they still have to comply with Michigan law to do a Michigan foreclosure.

But if you are the victim of foreclosure by advertisement, you will have to file a suit and prove your case that there the mortgage company did something illegal in the foreclosure process.

Now you have to dig in your pocket for filing fees, and serving the papers, and, most likely, hiring a lawyer.

And you might not win.

No guarantees in the lawsuit business.

It depends on how much you want to commit to fighting the mortgage company to stay in your house.

The more facts you have, the better the decision you can make.

Get an idea what your house is worth, don’t pay anyone for an appraisal, but check what houses in the area are going for.

Do a budget of your income and expenses, how much can you afford to spend on the mortgage and on lawsuits fighting about it?