I was told that a bank cannot foreclose on a house if they did not file the homestead, is that true?

The home stead is filed buy the person living in the property. The bank would not file a homestead.

You signed loan docs outlining your responsibilities toward repaying the loan proceeds that were advanced to you on your behalf to purchase your home.

If you live up to your end of the agreement the end result will be that you now own home that you have paid for as per your loan docs that you signed.

When you signed the loan docs another thing was also outlined if you failed to complete your part of the transaction.

The lender would take legal action against you to make sure they are paid on time and according to the contract, if not, the would proceed with the necessary methods of getting the collateral assigned and according to the laws of the state in which you reside.

This action to recover the collateral as you signed in your loan docs will cause the bank to foreclose on you and the collateral.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Whomever told you that a lender can not foreclose on a property is entirely wrong. The homestead is filed by the new owner of the property and it only has to do with taxes not the loan. If the property is being foreclosed it is due to non payment for at least three months, then the lender files in court for a Notice of Default which will give a date of when the property is being sold and whoever lives there has to be out before or on that day.

If the bank holds a mortgage on the property, they can foreclose.

You should kick that person butt for being so dumb, Just tell them that big bully told you to do it.