Defending a Foreclosure Lawsuit May Persuade the Bank to Negotiate With You

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					Defending a Foreclosure Lawsuit May Persuade the Bank to Negotiate With You In
terms of saving a house from foreclosure, defending the lender's lawsuit in court may be
one of the most effective ways of going about this. Banks can easily become frustrated at
the slowing down of the legal process and are more open to settling the matter out of
court. While banks and corrupt judges will try and railroad homeowners defending
themselves, hiring a competent attorney may allow borrowers to negotiate a resolution to
the foreclosure that benefits all parties involved. Even without using new or creative
defenses to foreclosure, such as a produce the promissory note strategy or a Jerome Daly
defense, homeowners can gain the upper hand in the legal system simply by having an
attorney attempt to delay the sheriff sale for as long as possible. Every motion filed with
the courts will have to be given attention and a potential hearing, all of which delays the
bank's ability to take the home and increases the costs of litigating the foreclosure case.
Lenders that are already faced with hundreds more foreclosures this year than last year do
not want to spend additional time and resources fighting borrowers. The benefit of hiring
an attorney to file such motions to delay the public auction really comes in the form of a
stronger negotiating hand in dealing with the bank. Most foreclosure victims simply roll
over and let the mortgage company foreclose with no objection in the courts; in fact,
banks and lenders' attorneys count on this when initiating the proceedings, hoping for a
quick lawsuit and property auction in order to begin regaining losses on the loan.
Borrowers who are represented in court by a competent lawyer show the bank that it will
cost much more to go through with the lawsuit than simply to settle the matter in some
more beneficial way. Of course, before the bank even gets to the lawsuit portion of the
process, homeowners should attempt to work out a mortgage modification or other plan
to get the loan back on track. But if the lender does not cooperate with these types of
negotiations, then it should not expect the borrowers to cooperate with the foreclosure
lawsuit and simply give up the house with no fight. Defending against the court
proceedings may be a last resort, but it can be a most effective one for forcing the bank to
come to the negotiating table. There are several different settlement options that
homeowners may bring up, as well, depending on the financial circumstances they are
currently in. While asking for another chance for a repayment plan is one option for
borrowers who can continue to make their payments, those who can not save their homes
but wish to avoid the most negative consequences of foreclosure can also negotiate with
mortgage companies. All the bank will be offered in return is that the lawsuit defenses
will stop and maybe that the owners will keep the property in good condition until
ownership is transferred to the bank. For instance, these types of borrowers can require
the bank not to pursue a deficiency judgment after the house is sold, or to accept a deed
in lieu of foreclosure instead of pursuing the sheriff sale at all. Another option is to have
the bank auction the property for its market value, which will preclude any taxable
forgiveness of debt. Borrowers can also ask for extra time, from a few weeks to a month,
to stay in the house and move out peacefully, or even request a cash for keys deal in
which the bank pays them to move out of the home without causing any damage. In fact,
the types of negotiations homeowners can enter into with lenders are nearly infinite. But
none of this can be done without mounting the initial legal defenses in court, or else the
bank, its attorneys, and the judge will most likely ignore the borrowers and push the
foreclosure forward. This is why understanding the foreclosure process and hiring a
competent legal counsel may ensure the best chance for finding a way to stop foreclosure,
or at least avoiding the worst financial and credit consequences of defaulting on a
mortgage and losing a home. Nick writes articles to provide homeowners in danger of
foreclosure with important foreclosure help and resources designed to give them the
knowledge and tools they need to save their homes. His various articles describe different
methods that may be used in nearly any foreclosure case, including refinance loans,
mortgage modification, short sales, deed in lieu, and others. Visit his site to read more
articles about how foreclosure works and how the process may be avoided before it is too

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