Bank Foreclosure Lawsuits

What does a person do when they’re confronted with a summons and complaint in a foreclosure lawsuit from the lending bank that they have a mortgage from?  Short end of it is, it needs to be answered.  Why do 95 percent of the people that are being served with these documents not answer them?  Well, simple reason is, basically because the bank is telling them not to.  Bank is saying, “You don’t have to worry about it.  Me and you are talking right now.  We’re gonna get you a modification.  Don’t worry about the fact that you’re being sued.  We hired their attorneys, but you know what?  Once we tell them, they’ll stop.”  Truth of the matter is, that the bank and the attorney’s office are doing their jobs separately.  The attorney’s office is hired to do one thing, and that’s to foreclose on you.  The bank, they may be interested in giving you a modification, depending on what they think the cost is going to be to foreclose on your property.  But, you should never, ever listen to the bank when they tell you, “Don’t file an answer.”  You could file an answer yourself.  Go to the courthouse, speak to the clerk of court, ask them for a form to file an answer.  It’s basic, it’s very simple.  But, you need to file an answer.  What’s gonna happen if you don’t file an answer?  Well, first things first, the attorneys are going to go and file what’s called a default judgment against you.

That essentially means that you did not show up and that you’re liable for the fact of what you’re being sued for.  What does that mean for the future?  That means that the sale is going to be set a lot sooner than later.  Whereas, if you were to file an answer, you would actually force the bank and the attorneys to prove their case.  The bank has to prove that they are the rightful owner of the note that they’re suing you upon.  They have to prove the fact that they have possession of that note.  Many times they don’t wanna do that.  It’s gonna cost them time, money, and resources that they don’t wanna spend on your case.  When you’re being told by your bank that they are working on a foreclosure, and a modification for you, make sure that you have document to prove that.  If you get a modification in the mail, or if you get a trial period, make sure that those are the terms that you’re willing to agree upon.  Right now there’s a new situation happening across the nation with banks.  Right now, the banks are offering modifications, people get them, gets everyone excited.  They sign it, they send a check, what does the bank do?  The bank then goes ahead and resells that loan and note to another lender.  And, the lender decides, “You know what?  We’re not going to modify the terms of this mortgage.”

What does that mean to you?  To you that means you’ve already been late for a countless amount of months in the process of getting this modification, and now tens of thousands dollars behind that you need to figure out how you’re gonna pay for.  What does that mean for the bank?  That means more money that’s owed to them, more money that they’re gonna get in terms of interest, and more money that the executives are gonna get out of your pocket.