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Judicial foreclosure defense: Protecting your investment and rights

On Behalf of | Oct 27, 2023 | Commercial Real Estate

The daunting prospect of commercial foreclosure can be a harrowing experience for business owners and property investors. It is a scenario that no one ever hopes to confront, yet it is a reality that countless individuals find themselves in when their commercial properties are at risk.

The stress and anxiety can be overwhelming when the threat of losing your business or investment property looms. However, it is crucial to understand that legal avenues are available to protect your commercial property and rights.

Challenging the lender’s actions

In initiating a commercial foreclosure, lenders are bound by stringent procedures and protocols. These regulations are designed to ensure a fair and lawful process. However, lenders, like any other party, can make mistakes or overlook critical details. When such missteps or errors occur in the foreclosure process, they become potential grounds for a robust legal defense.

Seeking errors in the foreclosure process

One critical aspect of judicial foreclosure defense is examining the foreclosure process with a fine-tooth comb. It involves scrutinizing every detail for potential errors or violations of the law. Here are a few tips:

  • Carefully review every notice you receive. It may have come from the lender, court or any other party involved in the foreclosure process.
  • Examine the chain of title to the property. Look for any irregularities or defects that could challenge the lender’s claim.
  • Have you requested a loan modification? If yes, verify that the lender has considered it appropriately. Make sure they have not overlooked any potential alternatives to foreclosure.
  • Check for any violations of the Truth in Lending Act (TILA).
  • Investigate if there were any predatory lending practices involved in the loan origination.
  • If you have filed for bankruptcy, ensure that the lender complies with the automatic stay orders, which should halt the foreclosure process temporarily.

Even seemingly minor discrepancies can be the basis for a solid defense. It may reveal opportunities to halt or delay the foreclosure, giving property owners more time to explore options.

Raising defenses

Your ability to raise defenses can protect your interests and buy you time to address your financial situation. But remember that legal defenses in a foreclosure case can be grounded in both state and federal law.

Furthermore, finding mistakes or oddities in the foreclosure process can be a strong approach to protect your property. Yet, how well these defenses work often relies on your unique situation. Hence, seeking advice from a lawyer is essential to customize your defense plan.