(This is not legal advice, for informational purposes only). If your home is in foreclosure, the worst thing that you can do is “do nothing or wait” until the last minute to respond. In a foreclosure situation, you must act fast and the sooner you act the better chances you will have to resolve your foreclosure situation. However, most homeowners facing foreclosure, still don’t challenge their mortgage lender.
The reason most homeowners don’t challenge foreclosure is that they lack knowledge and don’t understand that they have also “do have rights in a foreclosure matter.” Lenders and their lawyers are well aware of the rights homeowners have in foreclosure situations. Lawyers who represent mortgage lenders don’t tell homeowners about their rights because they are hired by the bank (representing the lender and not the homeowner). Homeowners need their own legal representation for foreclosure defense to have their rights represented.
Using QWR As Foreclosure Defense
State court judges often rule for mortgage lenders (more cases are won by lenders against homeowners in state court across the nation), where homeowners have little defenses against their mortgage loan default in foreclosure situations. In general, state courts are focused on the homeowner failing to pay the mortgage on time or falling behind and not paying the mortgage loan.
There are a wide variety of consumer protection laws that homeowners can use as foreclosure defenses. While in general in the United States both federal and state levels regulate consumer affairs. Federal courts often handle issues where questions are asked on the Fair Debt Collection Practices Act (FDCPA), Truth in Lending Act (TILA), and the Real Estate Settlement Procedures Act (RESPA).
For this reason, QWR (Qualified Written Request) can be a strong foreclosure defense strategy.
A QWR is covered under Section 6 of RESPA which provides borrowers with consumer protections relating to the servicing of their loans.
Once the homeowner sends a “QWR” the servicer has only exactly 20 business days to provide a written acknowledgment of the request. Often times the homeowner sends the “QWR” without knowing what to request. Free examples of a QWR found online don’t provide valuable information needed to build a strong foreclosure defense strategy.
When the QWR is presented properly the homeowner can learn about very important information concerning their mortgage loan contract. This information can be useful in working out a mortgage loan modification or even when a mortgage loan modification was denied before.
Learning details for the best information to request in a QWR put the homeowner at an advantage. The mortgage servicer has a timeline to resolve issues with QWR demands. Section 6 of RESPA requires the mortgage servicer to reach a resolution within 60 business days.
Most homeowners are unaware that because of improper mortgage securitization conducted by mortgage lenders, there are errors with their mortgage loan servicing documents. If these concerns are raised properly it can create a strong foreclosure defense strategy for negotiations.
Even when homeowners are not behind on their mortgage payments, it is a good idea to send a QWR to learn important information about their mortgage loan contract. During this time it is also a good idea to always continue to make the mortgage and escrow payments until the request resolution is completed.
For a QWR to provide a strong foreclosure defense, the homeowner should:
- Ask questions about loan servicing and ownership.
- Inform the mortgage servicer of specific improper mortgage securitization violations.
- Notify the servicer that the QWR is a demand under Section 6 of RESPA requirements and deadlines.
- Explain the errors and issues of concerns that are foreclosure defenses.
- Identify any TILA and fraud violations.
Order Mortgage Cancellation Secrets Forms to learn important details that should go into a QWR for best foreclosure defense strategies, hurry act fast!