Taking Action When Facing Foreclosure

Foreclosure Defense Lawyer

Facing foreclosure can be an incredibly stressful time for debtors and their families, which is why it may be necessary to gain representation from a foreclosure defense lawyer. When a person purchases a home, they enter into a contract with their lender, agreeing to make their payments in a timely manner. Unfortunately, when a person fails to uphold their agreement, they may risk losing their home through foreclosure. However, it’s important to note that foreclosure isn’t an overnight process. 

Understanding the Foreclosure Process

Foreclosure can be a complicated process, one that many may only have a firm handle on once they find themselves facing such a dilemma. The foreclosure process is highly stressful for those who have failed to make their mortgage payments. Through foreclosure, lenders initiate a judicial process to recoup some of the money they have lost. The following are the steps that are typically taken throughout during foreclosure.

1. The mortgage lender defaults on their loan by missing payments
2. After two payments are missed, the lender will contact the borrower in an attempt to rectify the situation
3. After 90 days, a letter is sent notifying the borrower of the breach
4. If the loan remains in default for 120 days, the lender may initiate foreclosure proceedings
5. The lender’s lawyer files with the court to initiate foreclosure proceedings, and the borrower has time to respond
6. The home is foreclosed upon and put up for sale through an auction, where others can place bids on the property

Options to Prevent Foreclosure

While some people may be ok with walking away from their home when it has been foreclosed upon, others may want to do everything in their power to remain in their home. Know that there are options available, but to navigate the process, it’s best to have a lawyer assist with the process. The following are possible salutations when facing foreclosure:

• Develop a Plan with the Lender
• Loan Modification
• Short Sale
• Deed in Lieu of Foreclosure
• Bankruptcy 
• Mortgage Forbearance

Having difficulty making mortgage payments can leave some feeling helpless, even paralyzed. It’s important not to ignore the process and hope the problem resolves itself. Chances are that it won’t. The best way to manage a foreclosure is by proactively understanding available options. With help from a foreclosure lawyer, borrowers who are in default can help to protect their client’s interests and provide them with the best defense against foreclosure proceedings. 

Enduring foreclosure is highly stressful for many reasons. Foreclosure can impact a person’s credit and ability to receive a future loan for another home. In addition to the financial impact, debtors will also be concerned about where they will live and whether it’s possible to prevent foreclosure from taking place.