Foreclosures are doing more damage to the USA right now than
crack cocaine did in the 1980’s. I’ve seen whole neighborhoods emptied thanks
to foreclosure, and the towns are bankrupt from the lack of property taxes.
Most of the homeowners were duped into taking out risky loans, and the
contracts were deceptively worded. But with Troy Doucet’s 23 Legal
Defenses to Foreclosure, the homeowner has a fighting chance.
The book starts with basic defenses, by telling you where to
look for your state’s mortgage laws. Does your city or town have laws regarding
foreclosure and eviction? The book tells you how such laws can be used to your
advantage. Most states are called “judicial states,” where the lender has to
file a lawsuit to foreclose, evict, and sell to pay off the balance. Predatory
lending isn’t a defense against having to pay, but can be a factor in your
favor if you sue the lender.
One of the problems people face in foreclosure is that they
aren’t familiar with all the jargon used in court, and here’s an example. Say
the lender has initiated foreclosure, and they haven’t proved their standing.
That’s a required proof in the suit; the lender must prove standing, which
means that they are the lender and would become owners of the house in a repossession.
Wells Fargo was fined in one case because they could not prove that they were
the mortgage holder in the suit.
Doucet’s book is not a replacement for a lawyer, and
borrowers are cautioned against going at it all alone without legal
representation. But it gives practical advice, and simplifies the issues like
preserving your credit score. My only fault with the book is that there aren’t
any case studies. I would like to have seen some examples of foreclosure
defenses in actual cases, because it would’ve helped me understand it a little
better. But this isn’t a college law textbook, so I’m willing to forgive.