Judges Hault Foreclosures

Flaws in foreclosure proceedings may help consumers stall the foreclosure process until they can work out a way to keep their home.

By: Lucy Stanton

Judges who have recently been reviewing foreclosure proceedings across New York have uncovered many discrepancies in the cases of plaintiffs who are attempting to foreclose on a home. These flaws may very well help consumers stall the foreclosure process until they can work out a way to keep their home. Because the rates of foreclosure are increasing so dramatically, the courts want to ensure that the parties filing the foreclosure lawsuit are actually entitled to the property.

The judges, several of whom sit on the Kings County Supreme Court in Brooklyn, have discovered a disturbing trend among mortgage lenders seeking for reclaim property. The companies are often taking shortcuts which may alter the course of the court proceedings. In some cases, such as those discovered by federal judges in Ohio, mortgage companies began foreclosure proceedings before they were entitled to do it. Because of errors like these in filing documents, many judges are dismissing cases “without prejudice”, which means that the mortgage company can refile after the errors are fixed.

In some states, of course, the foreclosure process doesn't require approval from judges, but in the majority of states, cases of foreclosure must be heard by a judge. In those states, the judicial process can make a major difference if it forces mortgage companies to obey the rules. The supreme court in Brooklyn, which hears most of the Brooklyn foreclosure cases, began reviewing case files and researching the background in foreclosure cases five years ago, long before the current foreclosure crisis.