Facing foreclosure can be overwhelming, but several legal options are available to help you potentially save your home. That is why it is important to have an understanding of all your options and how a foreclosure defense lawyer can assist you.
Loan Modification
Loan modifications are a common way to stop a foreclosure. This involves negotiating with your lender to change the terms of your mortgage. This can include lowering your interest rate, extending the loan term, or reducing the principal balance. Ultimately the goal is to make your mortgage more affordable, allowing you to catch up on missed payments and avoid foreclosure.
An experienced lawyer can play a vital role in negotiating favorable terms with your lender. Ensuring that you are fully protected and heard throughout the entire process.
Filing For Bankruptcy
Bankruptcy can be a powerful tool to stop a foreclosure. Once bankruptcy is filled an automatic stay is put into place, temporarily halting all foreclosure proceedings. There are two main types of bankruptcy to consider:
Chapter 7 Bankruptcy: While this does not allow you to keep your home in the long term, it can assist with delaying your foreclosure and give you more time to make arrangements.
Chapter 13 Bankruptcy: This option allows you to reorganize your debts and create repayment plans, potentially allowing you to create a plan to catch up on missed payments over the years.
A professional foreclosure lawyer can help you determine if bankruptcy is the right option for you and even guide you throughout the process.
Foreclosure Defense Litigation
If your lender has engaged in improper practices, such as failing to follow proper foreclosure procedures, you may be able to challenge your foreclosure in court. This process is known as foreclosure defense litigation. If you feel that this may pertain to your situation contact a respectable lawyer. A lawyer will be able to examine the details of your mortgage and the foreclosure process to identify any legal violations. If successful this can result in the dismissal of your foreclosure or at least provide you with more time to explore more options.
Forbearance Agreement
A forbearance agreement is a temporary solution that will allow you to pause or even reduce your mortgage payments for a specific time. These are common when financial hardship is present, such as losing a job or medical emergencies. During this period foreclosure proceedings are typically put on hold. After the end of this period, you will then need to catch up on the missing payments. A lawyer can assist with negotiating the terms of your forbearance, ensuring that it meets your needs and offers you the best chance of avoiding foreclosure.
Short Sale or Deed in Lieu of Foreclosure
If keeping your home is out of the question, a short sale or deed in lieu of foreclosure might be the right alternative for you.
Short Sale: You sell your home for less than it is owed on the mortgage. While this will not allow you to keep your home, it can assist with preventing the negative impact of foreclosure on your credit.
Deed in Lieu of Foreclosure: This involves voluntarily transferring ownership of your home to the lender in exchange for being released from your mortgage obligations. Just like a short sale this option can help you avoid foreclosure and minimize credit damage.
Navigate Your Foreclosure Options With Reda Sullivan
Stopping a foreclosure is possible with the right legal team on your side. Ensure that you do not navigate your foreclosure alone when you choose Reda Sullivan as your representation. Get a hold of our professional team today when you fill out a contact form right here on our website.
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