No one wants to lose a home. Although shelter is one of the basic human needs, not everyone is entitled to it. There are different reasons that can exist when a home is lost, one of which is the incapacity of the current owner to continue mortgage payments. This is probably the most common reason there is.
There are those who take mortgages out on their homes during a time of financial need. These people have nothing to worry about if they are able to meet the monthly payments. If the opposite happens, the lending institution, mostly banks, has the right to sell these mortgages in the open market. If there is a buyer who takes the deal, he will be the new owner of the home and the lending institution does not lose income on the unpaid borrowings.
Some people think that the borrowers are at fault. Some think that lending firms charge exorbitant interest rates and these are to blame. These arguments fuel the rise in Long Island foreclosure defense attempts from those who are about to lose their homes. A good example of such a defense is that which revolves on the issue of the chain of ownership.
Especially abroad, most homes have passed through several owners. With each sale and resale comes a legal transfer of documents. Financial institutions should track the history of home ownership as they need to be recognized in all relevant transfers made. If they do not have the right paperwork, their attempt at foreclosure will not be successful.
In connection with the initial example, there is another kind of Long Island foreclosure defense that people resort to and it is referred to as wrongful assignment. As previously mentioned, if lending institutions are not able to provide documents linking them to the transfers, they lose their case. With wrongful assignment, the validity of these proofs is tested. Basically, it is not enough for these firms to provide the necessary paperwork as they have to justify everything in court. Like other lawsuits, there needs to be a significant knowledge of facts.
When borrowers default on loans, banks have to take action to minimize their losses. This often leads to fraudulent activities on their part. Because of the onset of fraud in foreclosures, judges now require a legal affirmation from the lawyers of these financial institutions. The attorneys have to vouch for their clients attesting to the truthfulness of all claims made. This is actually an example of a Long Island foreclosure defense that has overturned plenty of foreclosure orders not to mention disbarred unethical lawmen.
A simpler yet highly effective defense is the lost note strategy. This is really basic. A foreclosure claim can be dismissed, or an order overturned, if a lending institution is not able to produce the original mortgage note. If this has been misplaced, the institution needs to prove that they once had possession of the note. If this is not satisfied, the home cannot be foreclosed regardless of the situation.
Finally, there is the Long Island foreclosure defense referred to as the legal standing strategy. Here, the financial institution is required to prove that they do have legal standing to enforce all agreements under the mortgage contract including foreclosure. Any signs of a lack of authority will render all claims invalid and will lead to a dismissal of all cases filed. This is a great strategy for those who are about to be foreclosed on because legal standing is a loophole that most firms ignore. It is common for these firms to hire third party enforcers when it comes to mortgage contracts.