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Our mission is to educate the American People about the foreclosure process and how homeowners can protect themselves from wrongfull foreclosure.

Four Things To Consider Before You Walk Away From An Upside Down Foreclosure

Dec 21st 2010 at 1:01 PM

Today many more homeowners in foreclosure are facing hard choices. Should they continue to try fighting for their homes or just let the homes go into foreclosure by just walking away? For many this may be a no brainer if they take into account of what is owed on the home as opposed to what the home is worth. Some people may opt to just walk away after realizing that their homes are upside down because this is the case for many homeowners due to the continuing declining property values. However, it may be a good idea to rethink the decision to walk away. Recent trends have revealed that many mortgage lenders have implemented improper foreclosure tactics in order to compensate for gross shady documentation of mortgage documents and to speed up the foreclosure process. Because of this, it may be revealed that there are more foreclosure prevention options available than just walking away from the property because it is upside down.

Consider these four reasons why you should not walk away from foreclosure even If the property is upside down.

Many lenders are not holders of the note in due course:

Many mortgages were bought, sold and transferred without proper documentation. As a result, most lenders are unable to show how they obtained the note a holder in due course. If a lender can not provide the proper documents to the show this they have no authority to foreclose. Securitization of a mortgage is necessary to be a holder in due course.

Falsified Mortgage Assignments

A quick review of a typical mortgage assignment may reveal the assignment was produced for the sole purpose of foreclosing on a property and that the signing officers are really “ROBO Signers” hired by the lender to document the assignment to push the foreclosure through. This seems to be a very common practice and chances are many mortgage assignments may not be valid. If that is the case the lender has no authority to foreclose. Lenders are circumventing proper laws to carryout foreclosures.


Mortgage Electronic Registration Systems, Inc collectively known as MERS was formed to help speed up the loan origination process by providing a much faster way to record the loan transaction and storing documents electronically. However, MERS has been under fire over the last few years or so because MERS has been listed as the assignee for many major banks and have wrongfully foreclosed on their behalf. Several state courts have even ruled that MERS has no authority to transfer, assign or foreclosure on behalf of a lender or in their name. They have been cited for actually shielding the borrower from ever knowing who the actual mortgage lender is. MERS is listed on over 80 % of the mortgages originated over the last several years so chances are MERS is listed somewhere in your very own mortgage documents as an assignee.

Possible Damages

This is probably the most important reason that you should reconsider before just walking away from your home even if it is upside down. It could be highly likely that after a quick review of your mortgage documents some major violations may be exposed and could provide other options to prevent foreclosure. For example such findings may force the mortgage lender to offer a more reasonable loan modification or even payment for damages. Either way, these options are probably much better than just walking away from your home. Your home is a major investment of time and money that you have already invested.

I understand dealing with a foreclosure is a scary situation and you need help fast. Many of the clients we have assisted were in similar situations and terrified of losing their homes to foreclosure. We helped our clients to verify their mortgage documents and discovered that their mortgage lenders had improperly documented the mortgage documents. As a result they were able to not only stop their foreclosures but negotiate terms on the mortgage that were very favorable for them. To learn more on how your can do the same log on to

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