Know Your Rights in a Mortgage Foreclosure

One of the most dramatic things for a homeowner is to be faced with the foreclosure of their home and the eviction from their home. Home mortgage foreclosures have dramatically risen in the past two years with the fall in housing prices and the uncertain economic picture. According to the Mortgage Bankers Association Illinois the loans in foreclosure or that are seriously delinquent is close to 20% of all the mortgages in the state.

The legal process that a lender must follow in obtaining a foreclosure is complicated. Many people do not understand the entire process.

We have found over the past year that one of the problems mortgage lenders have is proving to the Court that it actually has the standing to file the foreclosure action. Simply stated, the bank has to show that it is truly the owner of the mortgage and note. This must be done by demonstrating that it holds the original note that underlies the mortgage. The Judge cannot order a foreclosure sale unless it has clear evidence that the bank seeking foreclosure actually owns the note. In other words, the bank has to prove that it has the right to foreclose. In many cases that note may actually be owned by Fannie Mae. The bank filing the foreclosure case may have been nothing but a loan processor. This does not give the bank the right to foreclose.

Our office has been helping homeowners with defending mortgage foreclosures and has been working with lenders to negotiate a new loan in a smaller amount to reflect the actual value and the reduction of the value of the property. This is actually a better outcome for the bank, as well as the borrower, because a foreclosure costs far more than a right down and leaves the home occupied by the borrower.

If you require assistance in defending against a foreclosure of your home, please contact one of our experienced attorneys, Vicki Gonzalez at 847.823.9030 Ext: 220 or vicki@bellas-wachowski.com, for a free initial consultation to determine if this office can assist you in the process.