After a judge rules in favor of a mortgage lender in a foreclosure action, the lender’s next action is usually setting up a foreclosure sale. If a homeowner believes that the foreclosure judgment was entered by mistake, he or she may be able to challenge the foreclosure and stop a sale of their home if there has not been a sale and transfer of title to a new owner. After a sale has been finalized, the homeowner can only receive monetary compensation if a court later finds that the foreclosure was in error.
A homeowner may in some circumstances be able to stop a sale of a foreclosed home by filing for a temporary injunction or temporary restraining order, if he meets some conditions. The most important factor that a homeowner has to prove to the court in seeking an injunction to halt the sale of a foreclosed home is that if the sale is allowed to continue, the homeowner will suffer irreparable harm. A homeowner can show this by arguing that this is their home, and should the sale be allowed to proceed they would lose out on a unique asset.
Before filing for a temporary restraining order, a homeowner should make sure that they are seeking such an order based on a belief that he has legal grounds to challenge the underlying foreclosure judgment. If the homeowner proceeds to seek a temporary restraining order simply to delay a sale, there may be adverse consequences for the homeowner.
A temporary injunction stops a foreclosure sale for about 22 days. This does not offer a permanent solution for the homeowner. It just stops the sale for a while, and if the homeowner wants to appeal their case, they can do so while seeking a longer preliminary injunction. In a hearing for a preliminary injunction, the court looks at the hardships that would be experienced by both the mortgage lender and the homeowner if the judge grants or denies the injunction. The judge then balances the harms and makes a decision. If the homeowner can show a likelihood of success on their case on appeal, the court is more likely to issue a preliminary injunction. In some cases, a bond may be required when seeking either a temporary restraining order or a preliminary injunction.
If a homeowner is experiencing additional financial problems and has more debt than just their mortgage, the homeowner may also consider filing for bankruptcy is they cannot get back on track. Filing for bankruptcy also has an effect of stopping a foreclosure action against a homeowner for a period of time. Depending on how far along the foreclosure proceedings against a homeowner have gone, filing for bankruptcy may not be an advantageous move. Homeowners should discuss the implications of such a move with their attorney.
Contact a North Miami Foreclosure Attorney
If your home was taken as a result of a wrongful foreclosure, it is important to seek an experienced foreclosure defense attorney to determine what rights and options you have. Contact the North Miami foreclosure attorneys at Charlip Law Group, L.C. for a consultation on your case.