One of the most overwhelming and stressful experiences a homeowner can face is foreclosure. It happens when you are unable to make your regular mortgage payments. If the pattern of missed payments continues without conversations with your lender, your lender may start legal proceedings to recover the outstanding balance you owe on your household mortgage. If this occurs, you then run the risk of losing your home to foreclosure proceedings. When people are facing foreclosure, they are often under an immense amount of pressure and aren’t taking the appropriate steps in a timely manner to protect themselves and their home. In the worst-case scenario – homeowners sometimes do absolutely nothing and by then it is often too late to resolve the issue.
How Does Timely Action Help When Facing Foreclosure?
Taking timely and proactive steps is crucial to prevent or lessen the risks associated with foreclosure. By acting swiftly, you as a homeowner can explore different options with a foreclosure defense attorney. The longer you wait, the more difficult it will be to keep your home. Remember that early involvement not only helps protect your credit score and financial health but also ensures greater stability for your family and can also provide you with peace of mind during a challenging time.
Why Should I Hire A Foreclosure Defense Attorney?
The benefits of hiring the services of a reputable foreclosure defense attorney is limitless. Not only are they able to navigate the foreclosure process, but with their knowledge, they are able to negotiate with the lender on your behalf and can often help you explore alternative solutions.
Your attorney will take the time to help you understand all of the options available to you. This could be as simple as ensuring you understand the differences between deed in lieu of foreclosure vs short sales or communicating directly with your mortgage broker for loan modifications or refinancing. An added benefit to using a reputable and experienced attorney is that it will be harder for scammers to take advantage of you during this intensely stressful period. Your attorney will ensure that all procedures and offers are legitimate, giving you peace of mind alongside customized solutions.
What Other Actions Can Be Taken When Facing Foreclosure?
There are a number of actions and strategies that you can utilize when confronted with foreclosure. Keep in mind that your first and most important step is to enlist the services of a foreclosure defense lawyer. A reliable and experienced lawyer can offer expert advice on all your legal rights and options and provide you with a few alternative solutions. These alternative solutions, when done in a timely manner with the help of a legal professional could help with the proceedings. Some of these solutions include:
- Reinstatements
This option applies in limited circumstances where you as the homeowner have only experienced a temporary setback and are now once again able to manage your mortgage payments. However, this is a time-sensitive matter and must be communicated clearly with your lender and your attorney to ensure that all the appropriate requirements are met. You will in essence bring your loan current by paying a lump sum to cover the overdue amount inclusive of late fees and other additional costs incurred. It is one way to bring your loan back to good standing.
- Loan Modifications
One such solution is a loan modification. You may be able to work in combination with your mortgage lender to modify your loan terms. A discussion with them and your attorney could lead to potentially lowering your monthly mortgage repayments to make them more manageable. This is especially helpful in situations where unexpected loss of employment or health emergencies or loss have occurred which would have an impact on your ability to meet the previously set repayment amount.
- Forbearance
This presents itself in the form of temporary relief where your lender may agree to reduce or pause your mortgage repayments for the duration of a specified period. This will enable you to improve your current financial situation without the undue stress caused by repaying the original mortgage payments. During this period, your lender will not start the foreclosure proceedings. However, your loan term may be extended or you may have to pay an increased rate for future payments.
- Refinancing
When refinancing, your current mortgage is replaced. This is usually done at a lower interest rate or with better terms. This can lower your monthly payments, making them more manageable and helping you catch up on missed payments. To refinance, you must apply with a new lender and meet their credit and income requirements. If approved, the new loan pays off your old mortgage, and you start fresh with a new payment plan. Refinancing can be a good way to avoid foreclosure and stabilize your financial situation.
If you are seeking clarity on the foreclosure process and wish to consult a qualified attorney, the team at Gary I. Handin, P.A. is here to assist you. With extensive experience in assisting clients facing foreclosure proceedings, we are dedicated to achieving the best possible outcome for you and your family.
Give us a call today at 1-877-815-4560 to schedule a consultation with one of our reputable attorneys.