Breach of FHA Regulations no defense to Illinois Foreclosures

07 Apr Breach of FHA Regulations no defense to Illinois Foreclosures

If you have an FHA loan, the lender is supposed to comply with FHA regulations. We have always maintained that if the lender fails to comply with FHA regulations if you default on a mortgage, you have a defense to the foreclosure.

The Illinois Appellate Court just issued an opinion saying that lenders can get away with flouting FHA regulations. According to this court, borrowers have no rights even if the lenders totally ignore FHA regulations. A copy of the court’s opinion is available here: http://www.state.il.us/court/Opinions/AppellateCourt/2009/1stDistrict/March/1071063.pdf

We don’t like this opinion very much. But you should be aware that FHA mortgages are supposed to provide special rights to you. So if you have such a mortgage, get in touch with one of the Mortgage Law Network attorneys to be sure that you get the treatment you deserve.

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Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.
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