Foreclosure Defense: Lack of Standing
There are legitimate defenses to home
foreclosure, starting with the most basic question: Does the mortgage company even
have legal standing to bring a foreclosure action? Surprisingly often,
the answer is no. If your mortgage loan has passed hands since you bought
the house, that third party probably does not have the original note and
other documentation of full and proper transfer.
If you are threatened with losing your home, the experienced foreclosure
defense lawyers of Sulaiman Law Group, LTD, can intervene. We have successfully
thwarted foreclosure actions by demonstrating lack of standing on the
part of the plaintiff. You do have rights in this adversarial process
- we know how to assert them!
Contact us today online or by telephone at 312-313-1613 to speak with an experienced
Chicago foreclosure attorney.
Lack of Standing as a Foreclosure Defense Strategy
After you obtain a home loan, that loan can be sold to a third party without
your input or consent. Many mortgages have been sold and re-sold many
times over. More often than not, the original bank or lending institution
is not the named plaintiff in a foreclosure action. Unless the plaintiff
can prove that it is the proper holder of the note and mortgage, that
plaintiff lacks standing to initiate foreclosure.
Mortgage companies are famous for making homeowners jump through hoops,
demanding verification of this and that. When pressed in foreclosure litigation,
however, those same companies frequently can't locate - or never possessed
- the original loan documents. The more times the mortgage has been
bought and sold, the more hopelessly messed up the chain of paperwork.
The Illinois Supreme Court has unequivocally stated that "in Illinois,
lack of standing is an affirmative defense"* to foreclosure. Consequently,
a successful challenge to standing essentially brings the plaintiff's
foreclosure claim to a crashing halt. Furthermore, the mortgage company
cannot simply pick up where it left off if it suddenly produces the original
note. The plaintiff will have to start from scratch to properly establish
standing for foreclosure.
Contact Us: Mortgage Litigation Attorneys
award-winning lawyers can skillfully counter the legal arguments that mortgage companies will
typically offer. For example, a mortgage note endorsed in blank ("Pay
to the order of ____") does not automatically confer standing from
the original lender to the new entity. The entity seeking foreclosure
must still produce the original note.
Sulaiman Law Group, LTD, enforces your rights and holds lending institutions
accountable under state and federal mortgage laws. We exhaust every defense
to save your home. At a minimum, asserting your legitimate defenses will
force the lender to (a) take you seriously in negotiations or (b) start
the foreclosure process over. This buys you time to catch up on arrears
or pursue options such as
short sale, or
E-mail us today or call 312-313-1613 to speak with an experienced Chicago foreclosure lawyer.
*Greer v. Illinois Housing Development Authority, 122 Ill. 2d 462, 494 (1988).