MEB Loan Trust Foreclosure Defense

MEB Loan, a subsidiary of MEB Capital, focuses on purchasing real estate backedwyers debt. This means that the company purchases bundles of mortgage loans from other, usually much larger, financial institutions. While they state on their website that they are a trusted and proven resource, that is not always the case. Like other lenders, MEB Loan often infringes on the rights of borrowers. The fact that the company purchases loans from other companies can serve as a defense in itself. Below, our Fort Lauderdale foreclosure defense lawyer explains more.

What is an Assignment?

Mortgage companies, banks, and other financial institutions often sell and buy mortgage loans from each other. An assignment is a document that is the legal record of the mortgage loan transfer from one company to another. If you are a homeowner and MEB Loan has threatened you with foreclosure, you may be able to defend against it if they did not complete a proper assignment of the mortgage.

Two Important Documents in a Mortgage Loan

The vast majority of people purchase property using a mortgage loan. When taking out a mortgage loan, borrowers sign a deed of trust, or another security tool, and a promissory note. The mortgage loan is the contract that identifies the property as collateral for the debt and allows the lender to foreclose if you fail to make monthly payments. The promissory note is a document that includes your promise to repay the loan. The promissory note creates the debt and the mortgage provides collateral for it.

Understanding Mortgage Transfers

When a bank, lender, or mortgage company sells a mortgage to another company, it generally involves an endorsement and an assignment.

As its name suggests, the endorsement signs over, or endorses, the promissory note to a new owner. The owner of the promissory note is the only party that has the legal right to try and collect payment of the debt. This is known as standing. When a person or company has legal standing, they have something to win or lose by filing a lawsuit.

Any company that sells a mortgage loan must prepare an assignment of the mortgage to the new owner. In most cases, the assignment is recorded in the county records. The assignment of any mortgage gives the rights of the seller of the loan to the new owner. These rights include the right to foreclose if the borrower fails to pay the mortgage debt.

Information contained in an Assignment

Assignments must contain very specific information. This includes:

• The name of the assignor, which is the current owner of the loan such as the original lender, as well as the name of the assignee, which is the new owner
• The names of all borrowers on the loan
• The date of the mortgage
• The amount of the original loan
• The original mortgage recording information, and
• The legal description of the property

Determining if a Mortgage was Properly Assigned

The assignment of a mortgage is valid proof that the loan was transferred from one company to another. In the past, many courts have dismissed foreclosure cases when the company that filed the lawsuit could not produce an assignment. As such, if MEB Loan cannot provide the assignment, it can serve as a defense in your case. The best way to determine if a mortgage was properly assigned is to work with a Fort Lauderdale foreclosure defense lawyer. A lawyer will force MEB Loan to produce the assignment and can advise you on how to proceed when they cannot.

Other Defenses to Foreclosure

When mortgage loans are not properly assigned, it can serve as a defense to foreclosure. Fortunately, there are many other defenses available in these cases, as well. These are as follows:

• Predatory lending practices: Companies such as MEB Loan sometimes engage in predatory lending practices. Under the Florida Fair Lending Act, lenders must disclose material facts about any loan before closing them. Increasing interest rates on loans about to go into default, collecting excess late fees, and charging prepayment penalties after three years are all considered predatory lending practices. These are just a few, so it is always best to seek legal advice to determine if MEB Loan has engaged in them.
• Estoppel: Estoppel occurs when one party promises to do something but then later changes their mind after the recipient has relied on that promise. For example, lenders cannot foreclose if they have refused mortgage payments or prevented a borrower from making them.
• Failure to meet conditions precedent: Before companies such as MEB Loan can foreclose on your home, they must fulfill any conditions within the contract. For example, most mortgage contracts stipulate that companies must provide the borrower with proper notice that they are going to foreclose. Any time a lender or servicer fails to meet any of the conditions, it can serve as a defense to foreclosure.
• Statute of limitations: In Florida, lenders and servicers are governed by the statute of limitations or a time limit. Lenders and servicers have only five years from the date of default to start foreclosure proceedings. The statute of limitations is not as straightforward as it is in other cases. This is because each separate default can reset the clock on the statute of limitations. However, if five years have passed since the last date of default, that can serve as a defense and allow you to keep your home.

Our Foreclosure Defense Lawyers in Fort Lauderdale Can Help with Your Case

If you are in default with your mortgage and believe MEB Loan is going to foreclose on your home, it is important to remember that you have rights. At Loan Lawyers, our Fort Lauderdale foreclosure defense lawyers can advise you of what those are, the defense strategies that may be applicable in your case, and even help you keep your home. Call our Florida foreclosure defense lawyer now at (954) 523-4357 or reach out to us online to request a free review of your case and to get more information.