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Nonjudicial Foreclosures

In nonjudicial foreclosure states, the only way to raise a defense to the foreclosure is to file an action in state court seeking a court order (temporary injunction) holding up the sale until you have gotten a chance to argue your case. In most states you must post a bond (a kind of insurance policy) to protect the owner from financial losses during the delay caused by the case. This requirement alone can be expensive and might defeat the purpose of your bringing the case if your primary goal is to buy some extra time to live in your house payment free.

Also, if you must hire a lawyer for this court process, your costs will be considerable—maybe several thousand dollars. Your case may be dismissed just a month or two after you file it, meaning you will have spent a lot of money for very little delay. Of course, if you have a good shot at saving your house, the risk may be worth it.