They purchased houses they could not afford. They helped prop up the housing market and grow the housing bubble. They HELOC'd their way to a higher standard of living. But what do they do when faced with foreclosure and eviction?... They hire the lawyers to
Audio: Tim Says
2008-07-18: Foreclosure defense buys homeowners time
Homeowners facing foreclosure are hiring lawyers to defend them in court against their lenders, during which time they can stay in their homes without paying a cent.
Although the chances of ultimately keeping a foreclosed home are slim, for $1,500 to $3,000 some lawyers are offering to defend borrowers in court, causing the wheels of justice to turn more slowly.
Duking it out can add months and sometimes years to a foreclosure process that in Florida already takes an average of seven months to complete. Homeowners can use the extra time to save for a move, sell the house or mull other options.
Investors can continue collecting rent from tenants, recouping at least some of their losses.
''I hold the banks to their burden of proof in court,'' Kingcade said. ''Of course justice isn't doled out in a day. It takes sometimes six, eight to 12 months for that to happen,'' Kingcade said.