My name is XXXXX XXXXX I'd be happy to answer your questions today.
1. A dismissal is not an adjudication on the merits. So it would stop the foreclosure, but wouldn't abolish the debt usually. If the case is dismissed without prejudice (usually because there was some procedural problem), then it can be brought again, unless the statute of limitations has expired. If it was dismissed with prejudice, the case cannot be brought again.
2. If the stocks are collateral, the bank has no right cash them in unless you default on the loan. The bank has no control over the stock market
, so it's not their fault that the stocks are now worth much less. This doesn't sound like a grounds for dismissal, but if there is more information you think I need, please let me know. Sometimes it's hard to say without all the facts.
3. If you have insurance that is supposed to cover you in this case, and they're suing you instead of honoring the insurance, that would usually be an affirmative defense, which you would mention at the Motion for Summary Judgment stage. However, you could use it to say that they're not supposed to be suing you, so it might work in the dismissal. There's not really any harm in giving the judge multiple reasons to dismiss the case. If he agrees with any one of them, you'll win.