Owners of Homes in Bankruptcy Go to Court

by on Bankruptcy

Homeowners facing foreclosures, and even those who have homes in bankruptcy, have reportedly become more proactive in terms of fighting to keep their homes. In New Mexico, in an increasing number, property owners are showing up in front of judges even when they do not have representation or cannot afford a lawyer.

Although a huge percentage of Albuquerque foreclosures and other foreclosed property cases in various areas of the state have remained unopposed, the number of troubled homeowners opting to take advantage of their days in court has also increased. According to local officials, the main problem for most homeowners is that there are not enough lawyers that property owners can afford to hire.

Another problem is that the continuous increase of foreclosures in New Mexico has overwhelmed most free legal associations in the area, which makes them less able to accommodate all those who require help. But most homeowners are not backing out. Officials reported that a big number of them has come to court without a lawyer in tow, representing themselves against lenders and big banks.

Legal experts have stated that the growing interest of homeowners to take every opportunity to defend themselves is being buoyed by a change in the nature of processing foreclosures and even homes in bankruptcy. They stated that unlike before, majority of foreclosures now are due to unemployment rather than bad loans. These people are more interested in protecting their homes, which they have spent half of their lives paying for.

However, most of them are hindered by the intricate legal details governing foreclosures for sale that a lot who come to court without attorney representation still end up losing their homes. This has not deterred most of them, though. In Albuquerque, officials reported that about half of the owners of 100 foreclosure cases go to court on their own.

A number of legal aid associations specializing in foreclosures and homes in bankruptcy tried to help these unrepresented homeowners, but they stated that the sheer number of people requiring help has prevented them from accommodating all of them. In addition, most of them rely on state funding and are the first to lose financial support whenever the state undergoes a budget cut.

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