George K.
There are times when the economic situation is tough and no matter how much we tried, we are not capable of fulfilling all our financial obligations. When the situation gets really difficult, there is a chance we might even face losing our home. Not being able to keep up with the mortgage payments means that you are facing the danger of foreclosure.
This is a very stressful situation but keep in mind that foreclosure is a rigorous legal process and that you have certain rights. Having this knowledge can help you navigate the process a bit easier or even avoid it altogether. These are some of the things you need to know.
What is Foreclosure?
It’s a legal procedure when a person is not able to keep up with the payments towards the lender. This process that can be judicial or non-judicial, depending on a state, allows the lender to recuperate the borrowed money by selling the mortgaged property. In a non-judicial foreclosure, everything can be done without any or little court oversight. On the other hand, a judicial one requires a process to go through the court system and a judge to sign it off. only then can a property be put for sale.
Talk to The Lender
The foreclosures are costly and time-consuming for lenders; they will be open to talking to you. Many of them have a toll-free number you could call and discuss the possible solutions to your problem. This process of negotiation is called ‘loss mitigation’.
Even if you don’t contact the loan services, they have the obligation to call you or at least try to do so no later than 36 days after you missed your first payment. Within 45 days, they need to send a written notice in which they notify you about your rights. Still, you will have to be 120 days behind on your payments for the procedure to start officially.
Contact A Lawyer
Whatever the reasons behind your missed payments might be, you should contact an experienced lawyer to help you protect your rights. As stated by the legal professionals from fight13.com/practice-areas/foreclosure-defense/, no matter what’s the status of your foreclosure, a dedicated team of experts will explain all the available options. They will fight and try all the available legal methods so you could keep your home.
Given the fact that this can be very tiring, not to mention stressful, having someone in your corner will mean a lot. You will have to explain your situation in detail and they will know how to handle it in the future. The first consultation is generally free and that gives you an opportunity to meet as many attorneys as you want until you find the one that is best suited for your case.
Filing for Bankruptcy
One of the things you can consider to prevent losing your home is filing for bankruptcy. This can be a way to ensure the foreclosure doesn’t happen through ‘automatic stay’. It will prevent lenders from taking the majority of actions. However, filing for bankruptcy is a rather complicated process. So, if you consider taking this step, it would be best to contact an attorney. You will need all the advice and guidance you can get.
Negotiating in Good Faith
Although the law doesn’t mandate a certain settlement agreement, it does require parties communicating in good faith. Simply, foreclosure is the last option. If during a hearing the judge finds out that the lender has not been negotiating with the borrower and handling things in the proper way, the lender will probably have to face fees, among other penalties.
On the other hand, if you are the one that has been declining negotiation, the lender might immediately get the green light to proceed with a foreclosure. So, make sure all parts of the process have been acknowledged properly. You don’t want to find yourself on the street because you were too stubborn to reach out and talk to the ones that owe money.
Possible Alternatives
As we already mentioned, it doesn’t really pay off for a lender to go through a foreclosure procedure. So, before it starts, make sure you have gone through all the possible options. The repayment plan might be the way to go or a short sale. Reinstatement would be the best method if you can do it.
Facing foreclosure is you are going through a very difficult time in your life. However, that doesn’t mean you will lose your home. Try everything in your power to find some sort of an arrangement with the lender and be aware of your rights.
