When is a foreclosure NOT a foreclosure?  Answer:  when the party that filed the lawsuit lacks the authority to foreclose…but you need a Foreclosure Defense to determine that.

A foreclosure sale becomes a reality on your credit score when you lose your house because of a foreclosure lawsuit, regardless of who filed the complaint.  In most cases, the plaintiff will prevail if not challenged even if that plaintiff does not have all the proper documents in place.

Sometimes the legal action gets ahead of the paperwork.  In transferring the debt collection from one loan servicer to the next, the authority to foreclose can lag behind the collection of the mortgage debt.

If Party A does not own the home loan, it should be difficult for Party A to foreclosure on the property.  However in most cases, the homeowner does not put up a Foreclosure Defense, and the authority to foreclose is not questioned. 

A Foreclosure Defense is not a denial of debt, but it asks the other side to prove their case—to verify their authority and the details of what is owed.  Time is a side effect of Foreclosure Defense, time for a homeowner to pursue an alternative such as a short sale or loan modification.

Answer:  A foreclosure is not a foreclosure if a homeowner can get a short sale or a loan modification before the foreclosure suit can be completed.