Foreclosure Defense - The Basics
Tuesday, April 28, 2009 at 6:53PM The vast number of foreclosures filed these days works against most borrowers. Between 2005 and 2008, historical records were set by mortgage companies in making "creative" loans to financially unsophisticated borrowers. Certain types of loans, such as interest-only short-term balloon mortgages, are considered to be extremely risky, and had previously only been made to very sophisticated borrowers such as experienced developers with substantial assets providing additional security. The reasons for this are controversial and likely to be debated for some time to come. The bottom line is, a similarly large number of these mortgages are now in default or foreclosure.
This is a serious problem for most borrowers, because it is almost impossible to get the attention of a person who works for the lender who can make a sensible decision about their account. The foreclosure train speeds down the tracks, apparently without an engineer to pull the brakes. What I mean by that is, the lenders are forced because of sheer volume to foreclose, whether a foreclosure makes business sense or not. This harms both the borrower, who gets the sharp end of the financial disaster, as well as the lender, whose pure financial investment has turned into a litigation and real estate nightmare.
Therefore, the primary objective of a foreclosure defense strategy is to get the attention of a person with decision-making authority with the lender, so that a sensible financial decision can be made regarding the borrower's circumstances (and the related circumstances of the collateral property).
Next: Examples of Foreclosure Situations
Reader Comments (1)
Hi Jeff, My phone is not working from Spain. Call ya later.POP