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Common foreclosure defenses

On Behalf of | May 3, 2023 | Foreclosure Defense

Each year, judges in Illinois halt foreclosures because of errors by the mortgage holder. Several defenses against foreclosure exist, but some are more commonly used than others.

Unfair lending practices

Mortgage companies must not discriminate against who they lend money based on race, age, religion, national origin or many other factors. The Truth in Lending Act and the Home Ownership and Equity Protection Act protect if a borrower can prove they were discriminated against.

Special protection for U.S. servicemembers

The Servicemembers Civil Relief Act provides special protection for active duty servicemembers. These cases automatically must be heard by a judge. The protection continues for one year after you are discharged. The servicemember had to take out the loan before joining the military.

Improper Notifications

State law determines how a mortgage holder must be notified of foreclosure. The mortgage holder must place a notice in the local newspaper three weeks before the foreclosure in Illinois. Furthermore, he must notify the mortgage holder by mail at least 10 days before foreclosing on the home.

Mistakes by mortgage servers

The company offering the mortgage is called a mortgage server. The individuals at these companies can make mistakes causing them to try to foreclose on the wrong property. You can try to prove that in a court of law. The judge ignores minor errors but may rule in the borrower’s favor in larger ones. This is one of the most common foreclosure defenses.

Borrowers may consider taking their mortgage server to court if they feel they are being wrongly foreclosed on. Be sure to investigate specific laws before making a final decision.