Recent trends and characteristics within the mortgage industry have given borrowers and their attorneys numerous avenues of attack when challenging foreclosures. These trends include (1) pooling and securitization of mortgages, (2) widespread mismanagement of mortgage accounts and fraudulent servicing practices such as “robo-signing”, (3) use of the MERS system to avoid traditional recording requirements, and (4) the consolidation of financial institutions. Moreover, the exposure of rampant fraud and mismanagement within the mortgage industry has caused courts that once rubber-stamped foreclosures to shift their sympathies toward homeowners.
The following are some defenses that have been used to challenge foreclosures: