Eddie Van Halen played guitar on Michael Jackson’s “Beat It.”  Because of contract obligations, he was not credited or paid, but people recognized him anyway.  In dealing with foreclosures on mortgage loans, the who-is-who can be more difficult to sort out…which can be an advantage to a homeowner.

Subject Matter Jurisdiction is a big deal in our form of government.  The United States Judicial System requires that a court have Subject Matter Jurisdiction over the subject of the case, and requires that the parties are the proper parties to pursue the lawsuit.  With debt sold into secondary markets, Subject Matter Jurisdiction is an important question.  Just because you owe money does not mean the party suing you has the authority to pursue the case.

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, if the homeowner does not put up a legal defense, 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.  Seek competent legal counsel to learn more about Foreclosure Defense.