On behalf of Law Offices of Mark M. Kratter, LLC on September 23, 2012
Connecticut families in the midst of a foreclosure are aware of how emotionally and financially difficult the ordeal can be. One family who underwent a foreclosure recently is now suing the companies that were involved in the process. They claim the paperwork that documented who owned the mortgage was flawed, and they also allege violations of the Truth in Lending Act.
The family ran into financial trouble when they borrowed against their home to boost their catering business. When they contacted their mortgage company to attempt to work out a better payment plan, they had no success. When the recession occurred, the family took out a $1.2 million loan in order to keep their business open; however, their company ultimately closed and foreclosure proceedings were initiated on the family's home.
This New Jersey family's lawsuit could be an uphill battle because they had the opportunity to challenge their foreclosure earlier, but did not do so. The lawsuit could allow a peek into the hectic period of the housing boom. During that time, lenders rushed to write numerous mortgages in order to resale them as investments.
This practice often resulted in sloppy paperwork, making the process of tracking the mortgage ownership difficult. It could be difficult to prove the chain of title, since doing so requires all of the original documents associated with the loan. Only the mortgage holder could have foreclosed on the family's home, so answering the question of ownership is crucial to their lawsuit.
Foreclosure for Connecticut families can be a time fraught with high emotions and overbearing financial problems. However, there are ways to get through the process, and in some cases, to be able to save the home. Anyone facing the loss of their home should be sure to fully understand their legal rights as they relate to the legal process of foreclosure. Doing so could only serve to help them as they try to get through this difficult time.
Source: NorthJersey.com, "Family that lost Wallington home in foreclosure sues," Kathleen Lynn, Sept. 23, 2012
