Recently, there has been a halt to foreclosures on homes where the mortgages have fallen into default. The onus has been put on the lenders to prove that they have the right to foreclose. Judges have started dismissing foreclosure actions against homeowners as it has become clear that the banks do not have clear title or standing to foreclose.

What this means to struggling homeowners is that they now have an opportunity to challenge banks that may not have been helpful in the loan modification process. Very few homes have been successfully modified under the HAMP program and the blame for this is being laid right at the banks front door. From the entire modification process being characterized as unhelpful to downright deceptive, this moratorium on foreclosing will give homeowners a chance to negotiate favorable terms with their lenders.