Foreclosure Defense in Juneau, AK
Does an impending foreclosure in Juneau have you concerned about the future?
Reporting by LendingTree suggests the damage to your credit score will recover slowly. They estimate that this critical metric for borrowers only increases 10 points per year after foreclosure.
Protecting your long-term financial interests means limiting the damage. There are legal exceptions you can utilize, and a lawyer may negotiate a more advantageous deal. We provide the essential details you should consider today in the sections below.
What Is Foreclosure?
The process begins when a Juneau, AK homeowner does not make a mortgage payment. Under federal law, homeowners in Alaska have 120 days from the first missed payment. If the homeowner cannot resolve the issue, the lender can foreclose on the house. They will sell the home to recover 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 law allows the bank to complete a nonjudicial foreclosure on a home in Juneau, currently. They can finish this activity with only ten days’ notice at your last known address.
Foreclosure By Judicial Sale
Foreclosure by judicial sale involves the sale of a mortgaged property under the supervision of the court. The court proceedings work first to satisfy the mortgage, then to satisfy the lien holders, and then the lender. Foreclosure by judicial sale requires the lender to ensure anyone who buys the foreclosed property owns the title.
Types of Foreclosure Defenses
It is in your best interests to do everything in your power to stop the foreclosure process. Here are some common legal defenses your Juneau attorney might recommend.
The Bank Didn’t Follow State Procedures
The foreclosure process is complicated and time-consuming, and that can make errors more likely. If the bank or other lender did not follow Juneau, Alaska foreclosure procedures, you might have a good case for stopping the foreclosure.
The Mortgage Servicer Made Mistakes
Mortgage services can make mistakes when handling accounts. Here are some of the most common mistakes to look out for:
- Dual tracking, which means pursuing foreclosure at the same time a different loan modification is pending
- Sending your mortgage payments to the wrong party
- Overstating the amount of money you owe for your mortgage payments
- Imposing excessive fees for late payments that were not in the mortgage contract
If you think the mortgage servicer made these or other mistakes, contact an attorney in Juneau, AK right away. They may be your best hope to 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 Juneau from being able to foreclose your home without a court proceeding. It allows you to provide a defense with the help of an experienced foreclosure attorney.
If you took out your mortgage before being on active duty, the foreclosure proceedings must occur in court unless you signed a waiver.
The Foreclosing Party Lacks “Standing”
The foreclosing party is the party that owns the loan. If the lender can’t prove that they own the loan, they can’t foreclose.
This situation happens more often than you may believe. Banks often bundle your loan with others and sell them to other banks or investors. This reality can make tracking who owns the loan for your house difficult.
The Statute of Limitations Has Passed
The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed since they stopped making their mortgage payments. Believe it or not, some mortgages or missed payments slip through the cracks.
Alaska Statutes give most mortgage lenders three years to foreclose on a home in Juneau. This timeline can depend on the contract. Furthermore, there are situations where they can spend up to ten years chasing payment. It is also noteworthy that making payments restarts the clock, and banks will have a new timeline to start a civil action.
Additional Foreclosure Defenses
Here are some less common foreclosure defense options:
- You’re already making payments on a loan modification, so the foreclosure should not have started.
- You believe the lender violated federal regulations for your VA, USDA, or FHA loan.
- You never received a breach of contract letter informing you of the violation of your mortgage contract or deed of trust.
Preparing for the Foreclosure Defense Process
When an attorney takes on your case in Juneau, Alaska, you must remember that there are no guarantees. However, your chances just climbed higher.
Each Alaskan foreclosure case is unique and requires a deep understanding of foreclosure laws. A highly-qualified lawyer knows how to navigate the court system. As a result, they may identify any loopholes that can work to your advantage.
If you live in a state where foreclosures always happen in court, your attorney will present your case to the judge. If you live in a state where foreclosures happen outside the judiciary, you and an attorney may have to start the judicial process by filing a lawsuit. Generally, you can expect the U.S. District Court in Juneau to adjudicate these hearings. Even if you cannot stop the case, the attorney can help you stall while you get your affairs in order.
Work with an Experienced Foreclosure Defense Lawyer in Juneau, Alaska
Even if you fear you do not have a viable case, an attorney may find solid grounds for fighting the foreclosure. Consulting with a Juneau, AK attorney is an objective way to find out if your case is worth fighting in court. Most first-time consultations with a lawyer are free, so you don’t have anything to lose!
Take the first steps toward fighting to keep your home. You can also delay the process for as long as possible until you find a new one. We can even help you connect with an attorney across Alaska state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
