Once upon a time there was a very clever Fox. He came upon a Crow who sat high up in a tree with a nice bit of cheese in her beak. The Fox said to himself, If I can get that crow talking, the cheese will fall from her mouth and I shall have it. And so the Fox tried to engage the Crow in conversation.
He started with flattery, telling the Crow what fine black feathers she had, but the Crow just batted her eyes at him and held onto the piece of cheese. Next, he said that because she was so beautiful she must have a lovely voice to match, but that did not work either. Finally the Fox offered her a three million dollar home loan and her jaw dropped like a broken drawbridge.
“Why I never thought I could qualify for such a loan,” the Crow declared. The Fox gobbled the cheese quickly and sold off the Crow’s loan. That was back in 2005.
The Crow qualified for the loan at the time, but with the change in the economy, she found that she could no longer make the payments on it. Her nest egg was gone, and she was going to have to move back to the telephone line.
Along came the Fox again, this time to foreclose on her home. “What do you have to crow about?” said the Fox. “You have not made your payments and you are losing your house. You do not even have a nice bit of cheese like you did when we first met.”
Indeed the Crow had lost everything, including her sense of shame, and she spoke boldly to the clever Fox: “I will gladly hand over my house in foreclosure, but first you must prove your right to foreclose.”
“What?” replied the Fox. “Nobody does that!” But he was bluffing, and the Crow had an attorney.
While the Fox went back to his office to find his paperwork, the Crow put her house up for Short Sale. She did not care whether or not the Fox ever found his paperwork, so long as she could sell the house before he proved he had the right to foreclose.
Foreclosure Defense is not so much about winning or losing as it is about getting to a resolution first. You mitigate loss through an alternative outcome—such as Short Sale, Loan Modification, Refinance, Forbearance—before the Foreclosure goes through.
Foreclosure is something to crow about. If you remain silent, then you accept default, but if you question the lender through a legal defense, you give yourself the opportunity to seek the best possible outcome.