How to respond to a Bank REO Bank Foreclosure – REO lawsuit in court by filing an answer. Also, learn about 23 legal defenses to Bank REO Bank Foreclosure – REO including how to examine your loan documents for violations of powerful federal mortgage laws.

Defined. A lawsuit is a legal action filed by a party seeking to enforce his or her legal rights. A Bank REO Bank Foreclosure – REO action is one whereby a lender seeks to enforce its legal rights by foreclosing on the mortgage note, taking the property, selling the property, and recouping the money the owed under the mortgage. When the amount recouped by the sale of the property is less than the amount owed on the mortgage, the lender will likely seek to require the borrower pay the difference. This difference – the amount the borrower must pay after the sale – is called a deficiency judgment. Depending on the sale price of the property, this deficiency judgment can be substantial.

The Answer. The answer to a Bank REO Bank Foreclosure – REO lawsuit is exactly what is appears to be – a borrowers answer to the allegations made in the lawsuit (sometimes called a Bank REO Bank Foreclosure – REO “action” or “claim.”) The lender is the “plaintiff” and the borrower is the “defendant” when the lender files a Bank REO Bank Foreclosure – REO lawsuit against the borrower. The answer to the Bank REO Bank Foreclosure – REO contains three sections, as described below.

Read the full story