Electronic copy available at: http://ssrn.com/abstract=2163127
Since the economic housing crash of 2007 upto the second quarter of 2009, foreclosures escalated to morethan 2,152,000 annually,
with the largest occurrences being in the states of California, Florida, Nevada, Utah, Arizona,Colorado, Ohio, Georgia, Michigan, Idaho and Pennsylvania.
By the fourth quarter 2010, the number of mortgagedelinquencies fell to the lowest level in two years.
However,the number of loans in foreclosure remained at its highestlevel since the start of the mortgage crisis.
Today, 9,000 Americans are losing their homes to foreclosure daily.
With the rising incidences of residential foreclosures, manyhomeowners are overwhelmed by the foreclosure process andanticipated costs and often opt to vacate the premiseswithout oering any defense.
The American justice systemrests on the premise that no person will be deprived of theirliberty or property without due process.
Procedural dueprocess requires that a person have notice of the chargesagainst them as well as a reasonable opportunity to defend
Larry Cordell, Karen Dynan, Andreas Lehnert, Nellie Liang andEileen Mauskopf, Designing Loan Modications to Address the MortgageCrisis and the Making Home Aordable Program, 42 UCC L.J. 1 (2009).
See Realty Trac (Anthony's cite).
Nick Timiraos, The Wall Street Journal, February 18, 2011, A2.
See Olefson and Kaniuk, Florida Foreclosure Defense Strategies: An Immediate Look at the Best Practices for Assisting DistressedHomeowners in Florida, 2009 Aspatpre Special Report 11 (2009) and stat-ing that a total number of homes lost is anticipated to reach as many assix million with another two million Americans ending up underwater andan aggregate $4 million in home equity lost forever.
Cox, Foreclosure Reform Amid Mortgage Lending Turmoil: A PublicPurpose Approach, 45 Hous. L. Rev. 683, 709 (2008) and see John Leland,Facing Default, Some Abandon Homes to Banks, N.Y. Times, Feb. 29,2008, at A1 and see Pinkston, In The Weeds: Homeowners Falling Behindon their Mortgages, Lenders Playing the Foreclosure Game, and CitiesLeft Paying the Price, 34 S. Ill. U. L.J. 621 (2010) stating that in certaincircumstances homeowners lack the wherewithal, the nances, the incen-tive, or maybe all three, to ght foreclosure proceedings, and so the“choose” to abandon their property.
5th Amendment, United States Constitution, stating in pertinentpart, “No person shall be . . . deprived of life, liberty, or property, withoutdue process of law . . ..”
Defending Foreclosure Actions
© 2012 Thomson Reuters
Real Estate Law Journal
Vol. 40 No. 4