Until fairly recently, it has been difficult to submit defenses in foreclosure proceedings. However, new information that has recently surfaced and been made public with regard to banks and other financial institutions mishandling initial paperwork regarding the obtaining of mortgages, fraud on behalf of mortgage brokers and financial institutions, the loss of important documents regarding mortgages and the generally sloppy procedures utilized by financial institutions. The new information has opened up a new wave of defenses to foreclosure proceedings.
Challenge the Foreclosure Proceedings
1. Unconscionability of the mortgage. Unconscionability basically indicates that the mortgage was simply unfair. The terms of the mortgage must be so unfair as to “shock the conscious” of the court. A homeowner’s inability to pay the mortgage does not, on its own, make it unconscionable.
2. The failure of the financial institution to follow the appropriate procedures in the foreclosure proceeding. New York State law lays out the obligations a financial institution has to its customers. The financial institution must prove all aspects of its case to the court. The loss of documents, the failure to maintain adequate records or the failure of an employee of the financial institution (who signs the affidavit regarding the case) to have sufficient knowledge of the case are defenses to foreclosure proceedings.
Action to be Taken by Homeowner
Foreclosure Conferences
About Our Firm
Should you have questions or problems concerning a foreclosure lawsuit, feel free to call us at 1-800-344-6431, 516-561-6645 or 718-350-2802.
