Not being able to pay your mortgage loan is frustrating on its own. Those feelings only become more ominous when you receive a foreclosure notice from your bank. At this point, you have probably been behind on payments for months. The lender is now looking for foreclosure to recoup their financial losses. All is not lost yet, and you may be able to avoid foreclosure. Working with a real estate attorney can give you legal guidance to help you understand your options.
Reviewing Loan Documents
The first thing your attorney will do is review all of your loan documents. They will look for terms that can give you options to delay or stop your foreclosure. They will also confirm that the lender has followed the terms of your loan documents. Finally, the lawyer will compare your loan documents to the law to ensure they are correct, error-free, and legally enforceable.
Negotiating with Lenders
Once you hire an attorney, they will represent you. Instead of dealing with your lender directly, your attorney will communicate on your behalf. This can include negotiating with the lender. Because your attorney has experience representing
- Loan modifications
- Reduced interest rates
- Payment plans.
Exploring Alternatives
Your attorney can help you find alternative solutions to foreclosure. This could include explaining how a short sale works and whether you qualify. It could also include a deed-in-lieu of foreclosure. Or perhaps there are refinancing options available. There may be legal tools and options available to you that you are not aware of.
Filing for Bankruptcy
In some situations, filing for bankruptcy is the only option. Your attorney can help you determine which type of bankruptcy is best. Depending on the type of bankruptcy you file, the foreclosure will automatically temporarily halt. As you go through bankruptcy proceedings, the mortgage debt will be reorganized. This solution is helpful for those facing much larger debts than just a mortgage.
Defending Foreclosure Actions
You don’t have to accept the foreclosure simply because the lender filed it. Your attorney can file the necessary responses in court to fight a foreclosure lawsuit. In some situations, homeowners have legal defenses for their foreclosure. Your attorney can effectively prepare and file the documents required to argue against foreclosure in court.
Mediation Services
Sometimes, a lender is willing to avoid foreclosure if the homeowner commits to another solution. Your attorney can make arrangements with the lender to attend mediation. During this meeting, your attorney and the lender will negotiate a mutually agreeable solution.
Protecting Your Rights
Do not assume that the mortgage company or lender is above the law. Mistakes are made, and less reputable lenders may attempt to make legally questionable moves. Having an attorney advocating on your behalf ensures your rights are protected. Your attorney knows the law and will fight against the lender to prevent predatory actions or legal violations.
Avoiding Scams
There are countless scams out there that seek to prey upon homeowners facing foreclosure. These services claim to offer solutions that can halt or prevent foreclosure. Unfortunately, they do the opposite. They profit from homeowners, putting them in a potentially worse financial situation than when they came to them. Working with an attorney can help you avoid scams because they know what red flags to look for.
Avoid Foreclosure With Legal Help
Avoiding foreclosure is your goal when your home is on the line. Working with an attorney can help you find alternative solutions or prevent the foreclosure from taking place. Your attorney has experience with the law and working with lenders. This experience and knowledge are put into practice to advocate on your behalf.
Schedule a consultation and find out your options for avoiding foreclosure.
