Full question:
During 4/09 I had a Taylor/Bean mortgage that was in the loan mod process. 6/28/09 Taylor/Bean sends notice of loan mod 3 month trial payments, 1st being due 7/01/09. On 7/04/09 1st payment received by T/B. On 7/09/09 T/B forecloses on property recording it on 7/27/09. 8/02/09 2nd payment is received. 9/01/09 3rd payment received. 10/29/09 I receive a letter from OCWEN Loan serving, LLC with my Sept loan mod payment, 'insufficient to cure default'. I call the phone number provided, give them my loan number, and after three dept redirections, they tell me that Freddie Mac holds title now and they can't help me. Long story shortened; can I file a civil suit against them or put an involuntary lien against the property to stop an further sales of my home. Additionally what happened to my payments for July and August? Nobody seems to care or have any answers; however my family and I still live at the property, and I have no intent on leaving. Do I have any legal recourse?
- Category: Real Property
- Subcategory: Foreclosure
- Date:
- State: Nevada
Answer:
Over the past decade, mortgages have often been sold or assigned to different lenders. This is typically legal as long as the loan contract does not prohibit it. However, borrowers remain responsible for their payments even after such assignments. Sometimes, original loan documents may be lost or destroyed, making it difficult to prove ownership of the mortgage. If a lender cannot produce the original note, it may delay foreclosure proceedings and pressure them to renegotiate the mortgage.
In foreclosure cases, borrowers can request the court for three things in order: a temporary restraining order (lasting a few days), a preliminary injunction (lasting until the case is resolved), and a permanent injunction (if the borrower wins). An answer to a foreclosure complaint allows the borrower to respond to the claims made against them. While lack of funds is not a valid defense, other defenses may include proving the wrong party is named in the loan or showing all payments were made on time.
Regarding liens, they are typically placed on properties owned by others who owe a debt, not on properties owned by the lien claimant. In foreclosure, the mortgage holder can initiate proceedings after a default. There are two main types of foreclosure: judicial sale, which involves court supervision, and power of sale, which does not. Both methods require notifying all parties involved.
Some states allow for statutory redemption, which lets a borrower reclaim their property after a foreclosure sale, but New Hampshire does not have such laws. Additionally, federal laws like the Servicemembers Civil Relief Act provide protections for active-duty military personnel against foreclosure actions.
If you believe your payments were mishandled, it may be beneficial to consult with a legal professional who can provide guidance specific to your situation.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.