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It would be somewhat difficult for a homeowner to be declared insane and try to avoid foreclosure that way. Having been declared insane sometime after the original mortgage contract was signed, though, would typically have no effect on the mortgage company being able to declare foreclosure on the house. Insanity after the fact is not sufficient to have any kind of foreclosure proceedings dismissed.
However, if the borrower was insane at the time of signing the original mortgage contract, then it may be possible to have it declared void. Having a legal and mental capacity to enter into a contract is a necessary element of signing the mortgage contract. If the homeowner was mentally incapable of entering into a contract at the time the loan closed, then it may be possible to get out of the mortgage.
Even this, though, would be somewhat difficult to prove. People who take out mortgages have to sign numerous disclosures indicating that they understand the documents they are signing and that they are legally able to enter into a contract. If the borrower had a good job with stable income and could produce income documents showing a decent financial position, then it may be difficult to argue for that person's insanity at the time of signing for the mortgage.
In general, people who can be declared clinically insane and are manifesting the condition at the time they are applying for a mortgage are usually incapable of showing the stable economic conditions that would pass the guidelines for being loaned a significant amount of money. Proving later on, once the homeowner has fallen behind on the mortgage, that he was incapable of entering into the contract due to insanity may seem like a shaky case.
Such issues should be taken care of as soon as possible, preferably before the homeowner has fallen behind or at least before the bank has filed the foreclosure lawsuit in court. Family members who may be caring for the newly-declared insane borrower should take the mental state of the person into consideration when trying to help stop foreclosure. But if they are unable to show that the borrower was suffering from the mental defect at the time of the original mortgage, then having the contract voided will most likely be impossible.
Discovering that a family member or close associate is suffering from a clinically-diagnosable mental disability can be one of the most challenging experiences of one's life. Helping the borrower through present financial difficulties will also present numerous unique challenges, including the loss of a house to foreclosure. Unfortunately, simply knowing that a homeowner has become insane since the time of entering into the mortgage does not guarantee that the contract can be voided now that the payments have fallen behind.
What else can I help you with?
Do banks or homeowners have foreclosure auctions?
Lenders will occasionally have foreclosure auctions. Homeowners will often sell their property to avoid foreclosure.
To whom would one go for advice regarding a home foreclosure?
In the United States, there are government programs in place to help homeowners avoid foreclosure on their home. Some of these programs can help to lower monthly mortgage payments and interest rates. The USA Government website is an excellent source of information for someone facing foreclosure.
What are some good ways to avoid foreclosure?
The best way to avoid foreclosure is to prevent the filing of a Notice of Default. Lenders do not want to foreclose but will file a Notice of Default to protect their interests, if necessary.
What is the difference between a foreclosure and short sale?
A foreclosure is the surrender of the property to the lien holder for nonpayment of the debt. A short sale is the sale of the property before the completion of the foreclosure in an attempt by the home buyer and the lender to avoid foreclosure proceedings.
Where can one go in order to find mortgage foreclosure help?
The best place to get foreclosure help is from the institution that holds your mortgage. You may be able to renegotiate the terms of the loan and avoid foreclosure. Otherwise, Foreclosure Advisors can help you negotiate with the bank.
What are your rights during a foreclosure on your home?
It actually depends on your state, as the foreclosure laws are set by state. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure.
How did Odysseus try to avoid going to war?
By pretending he was insane.
How do I avoid foreclosure on my home when I have lost my job?
There is only one way to avoid foreclosure - make your payments. Any other method merely delays the inevitable. In extreme cases, depending upon the state you live in, bankruptcy can temporarily stop the foreclosure process while you get back on your feet.
What steps can I take to stop a foreclosure on my house?
The first step is to contact your bank or mortgage company. Many banks will work with customers to avoid foreclosure.
How can refinancing help me avoid foreclosure?
Refinancing can help you avoid foreclosure by replacing your current mortgage with a new one that has better terms, such as a lower interest rate or longer repayment period. This can make your monthly payments more affordable and help you keep up with your mortgage payments, reducing the risk of foreclosure.
What is the foreclosure process on your house?
That depends on your state. The laws for foreclosure are set by state. There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
What is the solution of house foreclosure?
There are actually companies that will work with you for free to buy your mortgage away from your mortgage company and avoid your foreclosure. I would advise looking into this first.
