Borrower fighting foreclosure: what to expect

[Daniel E.]

At approximately 1 week before foreclosure judgment, borrower entered a 30 day extension to answer complaint. 

My question is, what is the typical route here? My guess is that 90% of the time this is just a stalling tactic, but would like to hear the experience of others.

Facts:

Ohio

Property worth $100k

UPB: $60k

Payoff: $99k

Borrower discharged from Chapter 7

Borrower can afford $400/month, but property taxes are delinquent $12,000. They want to be paid over max 24 months. They were starting their foreclosure, but I asked them to hold off.

Last paid date of December 2009. We are okay based on the statue of limitations laws in Ohio.

Debt has been sold multiple times, but all paperwork is in line, including original note and mortgage.

Borrower has refused a $10,000 cash for keys offer.

I was very surprised that they want to contest. Property taxes will foreclose anyways.

What should I expect? Any advice is greatly appreciated.

@chris seveney

[Adam Adams]

Depends. Do they have an attorney? One of my borrowers got legal aid and it was never ending and was going to go to trial. The idea was that it would cost me so much that I'd give in. They were right. They were going to subpoena servicers, prior owner and anyone else involved. And I'd have to pay the costs. I had the law on my side, but judges don't always follow the law. We gave the defaulted borrower a mod that legal aid approved. He's defaulting again, but he'll have less protection because it's no longer a residential loan and it was approved by his attorney.

Had another in Michigan where we offered forbearance that was rejected. Went to court and the borrower showed up without an attorney. Gave a son story and the judge came up with a FBA. What choice did I have but to accept it. The borrow still didn't pay and we resumed, but the judge had no business getting involved. They do though and they don't all the time.

So what should you expect? What's he done in the past? You should have 9 years of history. I can't believe you are the first to act on the default. Any Pacer reports? Obviously he's a fighter and probably knows the system. A BK is what I would expect. If that doesn't happen and if he has an attorney, maybe a civil suit. 

What I wouldn't expect is someone that will just sit there and take it. He's already demonstrated that he won't go down easy.