Companies who are under the gun due to commercial property foreclosures might have a few options to delay or stop the process. The methods may be based on a contractual item or a statutory term.
Notice of Default
Commercial property foreclosures have a certain process that must be followed in order to reclaim the property and sell it at auction. In the event that the process is not followed correctly then the foreclosure may be temporarily stopped.
First and foremost a mortgage between a company and lender must clearly state how a borrower will be notified and at what point the notification will take place to alert them to the foreclosure. In addition, each state has their own unique laws that define when a borrower is notified and how the notification is to be carried out.
If the lender does not follow along with both their own loan requirements as well as the state requirements then the lender will be forced to stop the foreclosure until they are in compliance.
Possible Defenses
It is possible to defend commercial property foreclosures based on the Notice of Default. For instance, if the notice is not mailed within the specified time that is listed in the mortgage documents, or according to state law, then it is the same thing as not serving the notice at all.
Since many commercial locations receive their mail at a different location, the notice must be mailed to the correct place; otherwise the borrower will not be aware of the situation in a timely manner.
In these scenarios, as well as similar situations, the foreclosure is deemed to have some type of defect, giving the borrower the right to fight the foreclosure.
Mortgage Verification
The real estate boom that occurred from the late 1990’s and into the new century led to the development of a new system for securing mortgages. Since brokers were handling a large volume of new deals they needed a way to easily and quickly transfer the mortgage from their books to a different lender. Many times the lender would sell a batch of mortgages in order to get a quick return on their investment. The new system allowed companies to buy and sell mortgages multiple times without the need to record and transfer each individual note.
This new system has been an aid in commercial property foreclosures. The borrower can actually require that the trustee provides proof of the mortgage and note. This means that ultimately the only company that has the legal authority to initiate a foreclosure is the company that actually has possession of the note and mortgage. There are situations in which considerable time will be needed to locate the note, determine who the note holder is and who has the right to foreclose.
In some cases this process has taken a few days. However, most of the time the verification process can take months to complete and can even take longer than a year. This strategy usually will provide the borrower with enough time to either generate some more income to handle the bill or sell the property to relieve them of the burden of the payments.
Larry Chandler is a freelance writer for Trustee Verification Service, a company offering legal alternatives to commercial property foreclosures. They also have resources for stopping home foreclosure. Visit their site Trusteeverificationservice.com to learn more about their services.
Notice of Default
Commercial property foreclosures have a certain process that must be followed in order to reclaim the property and sell it at auction. In the event that the process is not followed correctly then the foreclosure may be temporarily stopped.
First and foremost a mortgage between a company and lender must clearly state how a borrower will be notified and at what point the notification will take place to alert them to the foreclosure. In addition, each state has their own unique laws that define when a borrower is notified and how the notification is to be carried out.
If the lender does not follow along with both their own loan requirements as well as the state requirements then the lender will be forced to stop the foreclosure until they are in compliance.
Possible Defenses
It is possible to defend commercial property foreclosures based on the Notice of Default. For instance, if the notice is not mailed within the specified time that is listed in the mortgage documents, or according to state law, then it is the same thing as not serving the notice at all.
Since many commercial locations receive their mail at a different location, the notice must be mailed to the correct place; otherwise the borrower will not be aware of the situation in a timely manner.
In these scenarios, as well as similar situations, the foreclosure is deemed to have some type of defect, giving the borrower the right to fight the foreclosure.
Mortgage Verification
The real estate boom that occurred from the late 1990’s and into the new century led to the development of a new system for securing mortgages. Since brokers were handling a large volume of new deals they needed a way to easily and quickly transfer the mortgage from their books to a different lender. Many times the lender would sell a batch of mortgages in order to get a quick return on their investment. The new system allowed companies to buy and sell mortgages multiple times without the need to record and transfer each individual note.
This new system has been an aid in commercial property foreclosures. The borrower can actually require that the trustee provides proof of the mortgage and note. This means that ultimately the only company that has the legal authority to initiate a foreclosure is the company that actually has possession of the note and mortgage. There are situations in which considerable time will be needed to locate the note, determine who the note holder is and who has the right to foreclose.
In some cases this process has taken a few days. However, most of the time the verification process can take months to complete and can even take longer than a year. This strategy usually will provide the borrower with enough time to either generate some more income to handle the bill or sell the property to relieve them of the burden of the payments.
Larry Chandler is a freelance writer for Trustee Verification Service, a company offering legal alternatives to commercial property foreclosures. They also have resources for stopping home foreclosure. Visit their site Trusteeverificationservice.com to learn more about their services.
No comments:
Post a Comment