How Long Does a Foreclosure Take?

How long do lenders have to foreclose?  The world may never know.  The Statute of Limitations is 5 years, but there are circumstances that can prolong the process. The idea behind the Statute of Limitations is that if you sit on your rights you lose them.  However, in some circumstances, if you do not assert your rights, another person could be hurt.  With the stock market linked to the real estate market, home foreclosure is one of those circumstances. With investments stacked in mortgage-backed securities, there is a public policy against free houses.  How would you feel if your pension fund just lost $300,000 in assets?  Failure to foreclose hits home when it affects your retirement pension or your kid’s college fund. For everyone involved, foreclosures need to move forward.  For homeowners, that does not mean you have to abandon your best interest, but you may need an attorney to help you pursue the most positive outcome in a bad situation.  Seek competent legal counsel to learn about your legal choices in foreclosure, and how to pursue a strategy towards your best benefit.   Read More

‘Never Give Up, Never Surrender!’ & the Seven-Year-Old Foreclosure

“Never Give Up, Never Surrender!” is from the movie, Galaxy Quest, and the phrase is the antithesis of the Statute of Limitations, though the quote accurately describes one particular foreclosure case that just celebrated its seventh birthday.  The case got started before I graduated from law school…and it is still going. The Statute of Limitations gives a certain period of time for a claim to be made; once the Statute of Limitations has run, the claim expires and can no longer be pursued.  The case of the Seven-Year-Old Foreclosure was dismissed with prejudice, but the Judge gave the opposition ten days to come up with case law.  The opposition filed a Motion of Rehearing.  Then it took them more than a year to bring in a specialist to come back after the defendant. The key element is that the second mortgage was not part of this case until five years after it started, then they were added.  The first mortgage company filed a foreclosure, but left out the second mortgage.  They filed an amended foreclosure complaint to add the second in, but the Statute of Limitations had already run.  The mortgage in the Seven-Year-Old Foreclosure is no longer really there—it […] Read More