Foreclosure Defense in Badger, AK

Foreclosures and delinquency rates are a few points below the national average in Alaska. However, the lingering effects of economic damage from the pandemic continue to ripple through the state.

The stakes could not be any higher for property owners in Badger. They have hundreds of thousands of dollars at stake when foreclosure proceedings begin. Consequently, the costs for an attorney pale in comparison to the alternative.

Do you need more information before you hire legal counsel? Then start to protect your most valuable asset by reading the details in our guide today.

What Is Foreclosure?

The process begins when an Badger, AK homeowner does not make a mortgage payment. From this point, federal legislation allows for a grace period of 120 days. If the homeowner has not resolved the payment issue, the lender can begin to foreclose on the house. The lender can sell the home to recover their losses as stipulated in the mortgage contract.

Foreclosure By Power of Sale

The power of sale is a clause in the mortgage or deed of trust. It states that the lender can foreclose without court oversight. Alaska Statutes allow this type of foreclosure to happen. They only have to give ten days’ notice to your last known residence in Badger. If the lender can prove that you meet these criteria, they can sell the foreclosed home.

Foreclosure By Judicial Sale

A foreclosure by judicial sale is when the court supervises the selling of a mortgaged property. The proceedings go toward paying the mortgage, lien holders, and other creditors. This process can be complicated, especially ensuring the party who buys the foreclosed land owns the title.

Types of Foreclosure Defenses

If you’re in the process of foreclosure, you’ll want to do everything in your power to stop the foreclosure. Here are common foreclosure defenses your Badger attorney might recommend.

The Bank Didn’t Follow State Procedures

Foreclosures are often time-consuming and complicated. As a result, it is not unusual to make a mistake. If the bank or other lender did not follow Badger, Alaska foreclosure procedures, you might have a way to stop the foreclosure.

The Mortgage Servicer Made Mistakes

Mortgage services can make mistakes when handling accounts. Here are some of the most common errors to look out for:

• Sending your mortgage payments to the wrong party
• Overstating the amount of money you owe
• Imposing excessive fees for late payments that were not in the mortgage contract
• Dual tracking: foreclosing at the same time that a different loan modification is under consideration.

If you think the mortgage servicer made these or other mistakes, contact an attorney in Badger, AK right away. They may have options to help you stop the foreclosure process and save your home.

You’re on Active Duty

The Servicemembers Civil Relief Act (SCRA) provides special protections to people on active duty. This legislation prevents lenders in Badger from being able to foreclose your home without a court proceeding. As a result, you can have the time to provide a defense with the help of a foreclosure attorney.

The primary protection is if you took out your mortgage before being on active duty. In this scenario, the foreclosure proceedings must occur in court even if that is not the norm unless you sign a waiver.

The Foreclosing Party Lacks “Standing”

The entity that owns the loan is called the foreclosing party. However, if the lender cannot prove they own the loan, they lack standing and cannot foreclose.

This possibility happens when banks often bundle your loan with other loans and sell them to other institutions. This back-and-forth can make it arduous to track who has ownership.

The Statute of Limitations Has Passed

The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed. Believe it or not, some mortgages or missed payments slip through the cracks.

The Alaska Court System states that mortgage lenders for homes in Badger have three years to foreclose. Nonetheless, there are several legal caveats to keep in mind. For example, consider a situation where a homeowner makes a payment. Even if they are still in arrears, the three-year statute of limitations restarts at that point.

Additional Foreclosure Defenses

Here are some less common foreclosure defense options:

• You’re already making payments on a loan modification, which means the foreclosure should not have been initiated.
• You believe the lender violated federal regulations if you have a VA, USDA, or FHA loan.
• You never received a breach of contract letter from the lender informing you of the violation of your mortgage contract or deed of trust.

Preparing for the Foreclosure Defense Process

There are no guarantees that you will win your case. But you should know that hiring an attorney in Badger, Alaska improves your chances significantly. Every foreclosure case has unique qualities, and a thorough understanding of the law is necessary. They could even find a loophole that works to your advantage.

In some states, foreclosures only happen in civil court. If this applies to your situation, your attorney will advocate for you on your behalf to the judge. On the other hand, in states where this process happens outside the judicial system, you have to start by filing a lawsuit. This type of litigation may begin with the trial court system in Fairbanks. Nonetheless, many circumstances will need to involve the U.S. District Court in Juneau. Even if you cannot stop the case, the attorney can help you stall while you get your affairs together.

Work With an Experienced Foreclosure Defense Lawyer in Badger, Alaska

You may not feel that you have a viable case yet. But an attorney can find the legal ground you need to stand up and fight the foreclosure. In many situations, meeting with a Badger, AK attorney is the only way to know if going to court is worth the time. Moreover, most initial consultations are free, so you do not have to risk anything to get started. 

Take the first steps toward keeping your home by contacting us today. We can even help you connect with an attorney across Alaska state lines. 

Submit a request online or call us at (866) 345-6784 to get in touch!