Since the 2007-2008 recession, and particularly in Illinois, an increasing number of lenders have initiated foreclosure proceedings. If you’re facing foreclosure or expect to face it, you do have some options. In the Chicago area, you should review your options with a knowledgeable Chicago foreclosure lawyer. Some of the more common legal defenses in foreclosure proceedings are explained here:
1. In any foreclosure, the lender must show it has legal standing to foreclose. Often a bank will designate ownership rights over the mortgage to a third party, and sometimes, the documentation recording that designation is missing or compromised, giving the homeowner cause to assert that there are no legal grounds for the foreclosure.
2. The bank must possess the original mortgage note in order to properly foreclose. In the absence of the note, in some jurisdictions the bank will be unable to foreclose. However, other jurisdictions will allow the foreclosure to proceed if the original note was lost or destroyed.
3. Foreclosures are a bit like trials; a burden of proof must be satisfied and the party bringing the action must have knowledge of the facts alleged in the complaint. Many courts are no longer permitting foreclosures to move forward without a bank representative personally providing knowledge of the facts surrounding a foreclosure.
4. Lawyers for banks are sometimes required to submit an affirmation attesting to the truthfulness of the foreclosure documents and accompanying documents. Without this affirmation, the action may in some cases be dismissed.
5. When a bank has sold the mortgage to multiple parties, it must show evidence of each sale along with retention of foreclosure rights with each transfer, or the action may be dismissed.
Properly examining the documents in a foreclosure and developing an effective defense requires an lawyer with considerable experience in foreclosure proceedings. In the Chicago area, if you’re facing foreclosure or anticipating it, speak at once with an experienced Chicago foreclosure lawyer.