The sellers of homes sold in foreclosure sales are usually looking to preserve their credit and obtain some relief from the threat or actual legal action taken by the lender. Legal action by the lender can prove costly and extremely stressful to a homeowner. In some cases, a foreclosure sale could be a viable option for a homeowner facing foreclosure.
A Primer on Foreclosure
Foreclosure is the legal process where bank or a lender acts on their right to enforce a financial obligation, in the form of a loan, owed to them by a borrower. The loan owed to the lender is a specific lien made in the form of a signed Mortgage and Promissory Note when a property is purchased. The loan is considered a specific lien because it is a lien over only the subject property and not over any other assets of the borrower. Since it’s a voluntary lien, a foreclosure cannot be halted using the protections of Florida homestead law.
Related – What is a Motion for Summary Judgment?
Impediments to a Foreclosure Sale
Foreclosure occurs when a borrower fails to pay their lender any installments due on the Loan Documents. During a foreclosure sale, the bank auctions the house. In some cases, a sale in foreclosure cannot logistically occur. Commonly, this occurs when a homeowner is upside down on their financial obligations to the lender.
This is also appropriate where the bank acts in bad faith or the homeowner has a good defense against them. During such instances, the homeowner should seriously consider obtaining a knowledgeable foreclosure attorney to defend the foreclosure.
Experienced Mortgage Foreclosure Defense
For more information on foreclosure or assistance with a property in a foreclosure sale, contact The Ticktin Law Group. Our knowledgeable attorneys will provide you with the best options when facing foreclosure. It was our firm that unearthed the fraudulent activity of the banks during the mortgage foreclosure crisis. We helped clients across the country fight the banks and stay in their homes. Call (561) 232-2222 or schedule a complimentary consultation to see if we can help you, too.
Editor’s note: updated on October 18, 2018