Free Houses? Recent Trends in Foreclosure Litigation


Free Houses? Recent Trends in Foreclosure Litigation

Free Houses? Recent Trends in Foreclosure Litigation


The subprime mortgage crises of 2008, which experts believe caused millions of mortgages to default, may be old news but mortgage lenders holding defaulted mortgages are starting to feel the effects and may now face a new problem which can result in the loss of the security interest. Nearly a decade after the 2008 Financial Crisis, considered the worst since the Great Depression, crippled the American economy, mortgage lenders are bringing an increasing number of foreclosure actions, but borrowers are now raising the statute of limitations as a defense. In some instances, borrowers are actually initiating actions in an effort to have courts declare mortgages invalid, thereby redefining the meaning of a “free lunch.”

Mortgage lenders responded to the subprime mortgage crises, but the response was not always the initiating of a foreclosure proceeding to gain possession of the collateral securing the loan. For example, mortgage lenders may have accelerated a mortgage upon default. Acceleration of the mortgage loan, however, may have triggered the running of the statute of limitations while offering very little benefit to the mortgage lender. In other instances, foreclosure litigations may have been initiated but not litigated to conclusion. In such circumstances, the loan could have been sold, a common occurrence, and the subsequent holders of the mortgages may have opted not to proceed. In other instances, mortgage lenders may have opted not to proceed with foreclosure litigations because of some type of deficiency (or a perceived deficiency), thereby opting to voluntarily dismiss the action. Such actions may have not stopped the running of the statute of limitation.


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One Response to “Free Houses? Recent Trends in Foreclosure Litigation”

  1. crittermom says:

    Wow. This article is all about telling mortgage lenders how to protect their ill-gotten gains, such as your home.
    It’s informative for those fighting foreclosure while pointing out how difficult it is as a homeowner to defend yourself with the laws varying so much between states.
    I lost any and all respect for ‘the’ govt when I turned to them for help when losing my home almost 5 years ago.
    I have yet to recover emotionally or financially. As a 65 yr old divorced female I’m sick of being told to ‘put it behind me & start over’.
    I wanted to see justice for the dirty deeds of the banksters. (No, the brick & mortar building didn’t steal our homes).
    It’s apparent that’ll never happen, just as any respect for ‘the’ govt will never again come from me. All I received in the form of ‘help’ from them was the advice to “hire a lawyer”, which would have cost more than I owed on my home of 20 yrs. I tried. For over 2 yrs.
    I lost everything of a lifetime.
    This article sickens me.


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