Missing Loan Docs, Lender Implosion Key To One Homeowner's Initial Success At Fending Off Foreclosure

Consumer Affairs recently ran a story on a financially strapped Independence, Missouri homeowner who has reportedly been having success at fending off a foreclosing mortgage company by, according to the story, "[c]ontesting the foreclosure on the grounds that between the implosion of the lender, the lack of a paper trail, and the bad terms of the loan, they were essentially defrauded and couldn't be held liable." An excerpt from the story:

• "She [the homeowner] has been able to stop foreclosure three times, maybe four by demanding that the servicer attempting to foreclose show proof that they own the mortgage and they can't," [one consumer advocate] told ConsumerAffairs.com. "Because mortgages were sold again and again and then to Wall Street where they were securitized and sold all over the world, I wonder how many homeowners have been foreclosed by a company that couldn't even show proof that they owned the mortgage."

• [The homeowner] says that more homeowners should challenge foreclosures by lenders who can't prove they legitimately hold the loan, and that many innocent buyers are the victims of "very unscrupulous activity" propagated by lenders and investors who are motivated by "nothing but greed."

For more, see Fighting Foreclosure: One Family's Story (How fighting back enabled a family to keep its home).

For other posts that reference the failure of some mortgage lenders and their attorneys to file the required loan documents when starting foreclosures, Go Here, Go Here, Go Here and Go Here. missing mortgage foreclosure docs beta