Agent

3 key defenses to a pending foreclosure

Bank's missteps give homeowner the upper hand
Published on May 25, 2010

DEAR BENNY: I missed two payments on my mortgage last fall due to the replacement of an HVAC system. I called the bank and asked for some help. They told me that I did not qualify. I made full payments in December and January. My February payment was returned and approximately one week later I received a notice from a law firm advising that my house would be foreclosed upon. Although I have asked, I have never received a bank statement detailing my payment history. I sent a note to the law firm disputing the debt, and requested a copy of the original loan along with the amount past due. Does the bank have to produce the original document prior to a foreclosure sale? The law firm seemed to feel that this was a non-issue. --Preston DEAR PRESTON: It seems to me that you have three issues -- possible defenses -- to the pending foreclosure. First, the bank accepted two of your payments, but returned the third. You could argue that the bank is legally barred -- lawyers call it ...

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