Foreclosure without evidence is a serious matter. So how do you handle a debt collector saying, “Pay up or we’ll instigate legal proceedings to foreclose?”

Sounds like a clear threat of legal action, without proof. Just because somebody writes a figure on a sheet of paper, doesnt mean the figure is correct, does it?

For more than three years the bank’s avoiding the provision of evidence in support of alleged outstanding loan liabilities.

Three years without making any payments to reduce an unsubstantiated debt.

And only a couple of attempts to call in the debt. Because a document that lacks the author’s name and/or signature doesn’t carry any weight.

Meanwhile the bank continues to add compounding interest, late payment fees, and now “Loan Enforcement Expense[s].”

All while the debt remains unsubstantiated.

Because bank actors remain silent about providing the necessary proof or documentation to support their claims.

In the eyes of the ordinary man or woman in the street, isn’t this behavior unlawful harassment?

It implies that the bank’s trying to pressure you into paying without offering any legitimate evidence of the debt’s existence. Here’s what you should consider in response to this situation:

Legal Threats Without Proof Of Claim

Before any foreclosure action can proceed, the bank must be able to prove that the debt is legitimate. If they have the proof, why are they not providing it?

As each day passes, they’re digging a deeper hole. By their silence, they can hardly claim to be taking the necessary steps to substantiate the debt. Surely they must have the evidence to present to the court?

Continuing legal action without providing proof or evidence of the debt (which they are legally obligated to do), could be considered illegal intimidation or unfair debt collection tactics.

Further, unsubstantiated threats of foreclosure may violate consumer protection laws. Many countries have laws prohibiting threatening legal action without the intention to follow through or when the underlying claim is not legally sound.

Request for Documentation

Continual demands for proof of the loan and accounting in support of the apparent outstanding loan account balance bear no fruit. These formal written requests, recorded as being as delivered, are difficult for the bank to ignore.

Now the deadline for the bank’s final invitation to settle the matter is no longer open. And further threats or demands by the bank are now evidence of unlawful harassment. The horse has bolted, the stable door is wide open.

No one at the bank is willing to sign a statutory declaration, provide a full account history, or any certified supporting documentation for charges like “loan enforcement expenses.”

Threat of Foreclosure Without Evidence

Foreclosure proceedings require substantial proof of the debt and typically involve the court system. If the bank’s unwilling and/or unable to provide you with proof of the debt, what does that tell you?

The way the bank handles their customer complaints when the situation becomes sticky is “this matter is now closed.”

So, time to return the favour. Send the bank a “this matter is now closed” notice. Because clearly they have no valid claim, and cannot proceed with foreclosure without evidence.

All they have is fear, through making unsubstantiated threats, while undermining their own position. In essence, they are using intimidation tactics to try to get you to pay, without having properly validated their claim.

If the bank attempts to move forward with foreclosure without substantiating the debt, this could be grounds for legal action on your part. You may be able to challenge their foreclosure action on the basis that they fail to meet their burden of proof.

Legal Response to Bank Threats

You can escalate any further threats to foreclose by consulting a lawyer to draft a formal response to their legal threats. Or send your own formal cease-and-desist letter. Demand they stop any further threatening or harassing communications.

Reporting to Authorities

If the bank continues to threaten legal action, escalate the matter by reporting them to:

  • Financial regulatory authorities (e.g., Financial Ombudsman, Consumer Financial Protection Bureau).
  • Consumer protection agencies that monitor illegal or unfair debt collection practices.
  • In extreme cases, you could even file a lawsuit for harassment or unlawful collection practices.

Keep detailed records of all interactions, including any threats of foreclosure, legal action, and communications from the debt collector and the bank. This documentation will be crucial if you need to pursue further legal remedies.

DWM’s correct. The banks know they’re committing fraud. Your challenge is to prove it. And you can start right here.

You must decide the best course of action to protect your rights and ensure that you find resolution to your satisfaction.