Even without using new or creative defenses to foreclosure, such as a produce the promissory note strategy or a Jerome Daly defense, homeowners can gain the upper hand in the legal system simply by having an attorney attempt to delay the sheriff sale for as long as possible. Every motion filed with the courts will have to be given attention and a potential hearing, all of which delays the bank's ability to take the home and increases the costs of litigating the foreclosure case. Lenders that are already faced with hundreds more foreclosures this year than last year do not want to spend additional time and resources fighting borrowers.

The benefit of hiring an attorney to file such motions to delay the public auction really comes in the form of a stronger negotiating hand in dealing with the bank. Most foreclosure victims simply roll over and let the mortgage company foreclose with no objection in the courts; in fact, banks and lenders' attorneys count on this when initiating the proceedings, hoping for a quick lawsuit and property auction in order to begin regaining losses on the loan. Borrowers who are represented in court by a competent lawyer show the bank that it will cost much more to go through with the lawsuit than simply to settle the matter in some more beneficial way.

Of course, before the bank even gets to the lawsuit portion of the process, homeowners should attempt to work out a mortgage modification or other plan to get the loan back on track. But if the lender does not cooperate with these types of negotiations, then it should not expect the borrowers to cooperate with the foreclosure lawsuit and simply give up the house with no fight. Defending against the court proceedings may be a last resort, but it can be a most effective one for forcing the bank to come to the negotiating table.

There are several different settlement options that homeowners may bring up, as well, depending on the financial circumstances they are currently in. While asking for another chance for a repayment plan is one option for borrowers who can continue to make their payments, those who can not save their homes but wish to avoid the most negative consequences of foreclosure can also negotiate with mortgage companies. All the bank will be offered in return is that the lawsuit defenses will stop and maybe that the owners will keep the property in good condition until ownership is transferred to the bank.

For instance, these types of borrowers can require the bank not to pursue a deficiency judgment after the house is sold, or to accept a deed in lieu of foreclosure instead of pursuing the sheriff sale at all. Another option is to have the bank auction the property for its market value, which will preclude any taxable forgiveness of debt. Borrowers can also ask for extra time, from a few weeks to a month, to stay in the house and move out peacefully, or even request a cash for keys deal in which the bank pays them to move out of the home without causing any damage.

In fact, the types of negotiations homeowners can enter into with lenders are nearly infinite. But none of this can be done without mounting the initial legal defenses in court, or else the bank, its attorneys, and the judge will most likely ignore the borrowers and push the foreclosure forward. This is why understanding the foreclosure process and hiring a competent legal counsel may ensure the best chance for finding a way to stop foreclosure, or at least avoiding the worst financial and credit consequences of defaulting on a mortgage and losing a home.