How to Handle a Nationstar Foreclosure and Protect Your Home

Going through a foreclosure is overwhelming. You may have the chance to challenge it.

The process depends on your foreclosure type. You will experience judicial or nonjudicial foreclosure differently.

Judicial foreclosures move through the court system. Nonjudicial foreclosures happen outside court supervision.

Jumping into a judicial foreclosure lawsuit is easier and less expensive. You can respond to the existing case directly.

Challenging a nonjudicial foreclosure requires filing your own lawsuit. You must initiate court action to stop the process.

Understanding the Two Types of Foreclosure

Every foreclosure follows different procedures based on state law. Knowing your type determines your defense strategy.

Judicial Foreclosure Process

The lender must file a lawsuit against you to foreclose. You receive a summons and complaint through legal service.

The lender carries the burden of proof. They must show the foreclosure is valid and justified.

You have 20 to 30 days to respond. Your answer presents defenses against the foreclosure claim.

Nonjudicial Foreclosure Process

The foreclosure proceeds without court supervision. The deed of trust you signed authorizes this process.

You must file a lawsuit to challenge it. The burden of proof shifts to you.

You need strong evidence to stop the proceeding. The judge must be convinced the lender violated procedures.

How to Contest a Judicial Foreclosure

File a written Answer to the complaint immediately. State your defenses clearly and specifically.

Explain why the lender cannot legally foreclose. Include procedural errors and legal violations.

Requesting Proof From the Lender

Demand all original loan documents from the lender. Request the promissory note, mortgage, and deed of trust.

Ask for refinancing papers if applicable. Request copies of all breach notices sent.

Look for errors in the documentation. Check for missing signatures or incorrect information.

Verify the lender followed proper procedures. Confirm they sent required breach letters.

Never admit responsibility for any claims. Deny allegations or state insufficient information to respond.

Filing Your Answer Document

Your response must follow specific court formatting rules. Address each claim in the complaint.

Deny each allegation or claim insufficient knowledge. Force the lender to prove every element.

Include your affirmative defenses in the Answer. Explain legal reasons the foreclosure should fail.

Common defenses include improper notice and procedural violations. Servicer errors and missing documentation strengthen your case.

File your Answer with the court clerk. Send copies to all parties in the lawsuit.

If you need help responding to a foreclosure lawsuit, our partner Solo can guide you through the process.

Defending Against Summary Judgment

The lender may file for summary judgment. They ask the judge to rule without a trial.

You must oppose this motion with evidence. Submit written arguments and supporting documents.

Attend the hearing to present your case. Show material facts remain in dispute.

If the judge denies the motion, the case proceeds to trial. You get the opportunity to present full evidence.

How to Fight a Nonjudicial Foreclosure

You must file the initial lawsuit yourself. The burden of proof rests entirely on you.

You need to show the lender violated laws. Prove they failed to follow proper procedures.

Filing for a Temporary Restraining Order

Request a TRO to immediately stop the foreclosure sale. Show you will suffer irreparable injury without it.

Judges often grant TROs without lender response. The order provides temporary protection while you build your case.

A TRO typically lasts 10 to 14 days. You must follow up with additional motions.

Requesting a Preliminary Injunction

File for a preliminary injunction after the TRO. The court will review all your evidence.

Prove the lender broke laws or contract terms. Show violations of the deed of trust.

Present witnesses and documentary evidence. Convince the judge to pause the foreclosure.

The preliminary injunction lasts during the litigation. You maintain protection while your case proceeds.

Seeking a Permanent Injunction

A permanent injunction stops the foreclosure completely. You must win your case to obtain this.

Prove significant legal violations occurred. Show the foreclosure should never proceed.

Permanent relief ends the foreclosure threat. You keep your home if successful.

When Fighting Makes Sense

Fight if the lender clearly broke the law. Challenge foreclosures that violated your rights.

Strong cases involve missing breach letters. Improper notice procedures create valid defenses.

Servicer errors in accounting justify challenges. Incorrect payment applications affects the debt amount.

Dual tracking violations provide grounds to fight. Lenders cannot foreclose while reviewing loan modifications.

Robo-signing and documentation problems weaken lender cases. Missing chain of title creates ownership questions.

When Not to Fight

Avoid fighting if you have no valid defense. Delaying tactics without merit can backfire.

Challenging proper procedures wastes resources. You may face additional legal fees.

Consider alternatives if the debt is legitimate. Loan modifications may provide better solutions.

Bankruptcy can pause foreclosure and restructure debt. Chapter 13 allows you to catch up on payments.

Alternative Options to Foreclosure

Loan modification changes your mortgage terms. You may get lower payments or interest rates.

Forbearance temporarily reduces or pauses payments. You catch up after financial hardship passes.

Short sale allows you to sell below mortgage balance. The lender forgives the remaining debt.

Deed in lieu transfers property to the lender. You avoid foreclosure on your credit report.

Building Your Foreclosure Defense

Gather all mortgage and loan documents immediately. Organize correspondence with the servicer.

Document every payment you made. Keep bank statements and canceled checks.

Review your account statements for errors. Note any disputed charges or fees.

Request your complete loan file from the servicer. Federal law requires them to provide it.

Photograph any property condition issues. Document problems the servicer should have addressed.

Key Evidence to Collect

Original promissory note with signatures. Mortgage or deed of trust documents.

All payment history records. Correspondence with the lender or servicer.

Breach letters and default notices received. Proof of delivery dates for notices.

Loan modification applications and responses. Any agreements or payment plans arranged.

Working With Nationstar Specifically

Nationstar Mortgage operates as Mr. Cooper now. The company services millions of mortgage loans.

Nationstar has faced regulatory actions before. Document all interactions with their representatives.

Keep detailed notes of phone conversations. Record dates, times, and representative names.

Send important communications by certified mail. Maintain proof of delivery for all documents.

Review your servicing transfer notices carefully. Verify payments went to the correct servicer.

Common Nationstar Foreclosure Issues

Payment application errors occur frequently. Verify how Nationstar applied each payment.

Forced-place insurance increases costs dramatically. Challenge unauthorized insurance policies.

Fee pyramiding adds unnecessary charges. Question all fees on your account.

Lost modification paperwork delays relief. Submit documents multiple times if necessary.

Understanding Your State’s Foreclosure Laws

Foreclosure procedures vary significantly by state. Research your state’s specific requirements.

Some states require mediation before foreclosure. Take advantage of these programs.

Notice requirements differ across jurisdictions. Verify the lender provided proper notice.

Redemption periods allow you to reclaim property. Know your state’s redemption rights.

Deficiency judgment rules affect remaining debt. Some states prohibit deficiency collection.

The Importance of Acting Quickly

Foreclosure timelines move faster than you think. Missing deadlines eliminates your options.

Response deadlines are strictly enforced. Courts rarely grant extensions without good cause.

Early action provides more negotiating leverage. Lenders may offer better alternatives early on.

Waiting reduces your defensive options significantly. Take action as soon as possible.