“Shame is the reason why most borrowers don’t contest foreclosures. That shame turns to intense anger when they realize that they were used, screwed, abused and now they are targets in a continuing blitz to embezzle much-needed money from their lives and from the financial system generally.”
No, ignorance is the reason why most borrowers don’t contest foreclosures.
I’m a Christian, most of my friends & clients are, and more than once I’ve heard a client say it’s our Christian duty to pay our debts. That’s true, but Christ says don’t go into debt to begin with. Also true is that you have no duty to pay a fraudulent debt, but even if the mortgage is fraudulent, you have no right to keep the house you “bought” with the mortgage.
You have no “equity” unless you made a large down payment and/or have made mortgage payments for many years. As everyone should know, for several years your payments are going to interest, not principal — on a typical mortgage you have to make on-time payments for 10 years before you have any real “equity” — unless you made a big down payment.
And a crucial point I have not seen mentioned on this site (which I’ve followed for years & have commented on a few times) is that a mortgage falls into the category of CONTRACT law. You may be able to show that your mortgage was a sham to begin with, and/or that it’s been fraudulently transferred several times & there is no legal chain of title / custody of the (promissory) Note, but that doesn’t change the fact that you entered into a CONTRACT. If you don’t make the payments you agreed to, that’s a breach of contract.
If the contract is fraudulent, or “unconscionable” (no reasonable person would enter into it), the burden of proof is on you. And as many courts have held, even when you can prove the mortgage has been sold or otherwise transferred multiple times, with everyone (other than you) making a profit, you’re still obligated to honor the contract. In other words, if your mortgage has been sold / assigned one or more times & the original “Lender” has already been paid, you’re still obligated to make the payments you agreed to, or suffer the consequences for not making them.
I’m not saying there’s no way out of a fraudulent mortgage & I’ve helped several people stop a foreclosure, but you must understand that you’re dealing with contact law & the Uniform Commercial Code (UCC) as codified in your state. The UCC is NOT federal law, but all the states enacted it into state law about 60 years ago, with few changes. For example, the UCC is chapter 25 of the North Carolina General Statutes.
So if you want to contest a foreclosure, you either have to know contract law, or find someone who does.