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How to identify an unlawful foreclosure

If you are one of many Arizona residents who are currently experiencing financial problems, you might also be among those who are actively seeking viable options for debt relief. If you have received a notice in the mail to inform you that the bank is calling in its loan, you might be worried about losing your home. However, receiving notice doesn’t necessarily mean you will lose your home, especially if lenders have initiated an unlawful foreclosure.

Your mortgage is a financial issue. If you’ve encountered challenges in keeping up with payments, you might be at risk for defaulting on your loan. Most lenders, however, want to avoid foreclosure as much as homeowners do because it creates a ton of paperwork and tasks that must be undertaken in order to complete the process. However, there is also a lot of fraud in the financial world, which sometimes includes wrongful foreclosure on a home.

How do you know if a foreclosure is fraudulent?

While every state has its own foreclosure laws, there is a certain protocol that is common across the board. For instance, it is illegal to forge a signature. It is imperative that all signatures on your foreclosure documents be authentic; otherwise, you could have a wrongful foreclosure problem on your hands.

Another issue that often constitutes unlawful foreclosure is known as ‘robo-signing.‘ Before a sworn affidavit is submitted to the court as required by law, bankers must carefully review a homeowner’s documents to confirm that he or she has defaulted on a mortgage loan. If bank employees sign off on an affidavit without actually reviewing the homeowner’s records, it is robo-signing, and it creates an unlawful foreclosure.

How can you save your home from foreclosure?

There are often several ways to stop a foreclosure in Arizona. You might consider filing for bankruptcy, which, in some cases, activates an automatic stay against collections, foreclosures and certain forms of litigation. If you believe that you have evidence of wrongful foreclosure, you can bring the matter to the court’s attention.

The judge overseeing your case might determine that you have not defaulted on your loan. He or she might also rule that, while the initial foreclosure was unlawful, your lenders can start afresh by beginning the process over again. Being proactive to try to halt a foreclosure might be just what you need to do in order to keep from losing your home. If you are unsure about Arizona foreclosure laws, it’s wise to seek counsel before taking any legal steps to try to stop a foreclosure in its tracks.

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