What Options Do You Have When Facing Foreclosure?

• 29 Nov 2022
• Foreclosure Lawyer

Foreclosure is a very real threat since many locals are having trouble making their mortgage payments. If you act quickly to get legal counsel, you may be able to prevent the loss of your home to foreclosure.

Learn why you should talk to a queens foreclosure attorneys right away if you’re already far behind on your mortgage payments.

What Is Foreclosure?

Foreclosure happens when a homeowner defaults on a mortgage debt. In the end, this implies the lending institution (bank or lender) takes title to the property, rather than the homeowner.

In the beginning of the foreclosure process, the bank or lender will make every effort to work out a repayment plan with the borrower so that the borrower can regain possession of the property. However, after a long delay, the lender may simply serve the buyer with an eviction notice. They decide that reselling the house to a new buyer is the best option for repaying the loan.

Options You Have When Facing Foreclosure

The mortgage lender that originally financed the home’s acquisition now possesses legal title to the property. Assuming the loan is never repaid, the lender takes full title to the property. In most cases, the end result is to package up foreclosures and sell them off to interested buyers. In order to avoid foreclosure, you can do one of five things, including being current on payments, declaring bankruptcy, negotiating a new loan terms, or even selling your house in a short sale.

● Do Nothing

If you choose to ignore the lender and do nothing, you might face foreclosure in as little as 21 days, even if you’re inclined to just walk away. Further compounding the damage, no time of redemption exists for mortgage foreclosures. If your house is foreclosed on, you will likely lose possession and be forced to vacate.

You will lose your house, your credit score will take a major hit, and you will probably still owe money to the bank or the IRS. The bank may send you a Form 1099 and require you to pay taxes on the “forgiven” debt amount if they decide not to sue you for the debt.

In most situations, doing nothing is a bad idea since it can lead to negative consequences like ruined credit and hefty legal or tax bills.

● Modify Your Loan

A loan modification might be the best option if you’ve had a momentary hardship that has passed and you’re now able to make regular or reduced payments again (but not catch-up payments). Due to the lengthy application and verification processes, only 7% of people who seek help actually end up receiving it.

Aid from organizations like legal firms or loss mitigation specialists can greatly improve the quality of the outcome. Unfortunately, HAMP and other government-sponsored initiatives have been ended owing to a decline in demand and general ineffectiveness.

Those who have fallen behind on their payments but are now in a position to start making payments again may benefit from a Loan Modification.

● Catch Up on Your Payment Plans

If you’ve fallen behind on payments by a little amount and can start making payments again but cannot yet bring your account current, a payment plan may be your best option. A borrower may be able to get back on track with payments over the course of 12 to 18 months by enrolling in a payback, workout, or forbearance plan offered by many lenders.

If you experienced a temporary setback but are now in a position to make monthly payments plus catch-up payments, a repayment plan may be an option.

● File Bankruptcy

Bankruptcy is seen by many as the last resort for avoiding foreclosure. Filing for bankruptcy will put a temporary hold to the sale, but the short-term gains may not outweigh the long-term costs. In most circumstances, you should actively examine other choices unless you are drowning in non-mortgage debt.

Filing for bankruptcy is a viable option for those who are drowning in debt, but it isn’t the greatest choice for most homeowners who are facing foreclosure.

● Dispose of Your Property

If you’re having trouble making your mortgage payments or you just want out of your current scenario, selling the house might be the best solution. Seek for a buyer willing to close quickly if you have equity, but do it before the foreclosure auction. Alternatively, contact a foreclosure defence attorney firm to file a TRO to block the foreclosure.

How Will a Foreclosure Defense Attorney Help You?

Knowing what you don’t know is a key advantage of hiring a foreclosure defense lawyer and attorney. Queens stop foreclosure lawyers offers the expertise to find advantages to your case, such as a defense you haven’t thought of or a mistake the mortgage lender has made in the law.

Hiring legal counsel has several benefits, including the fact that your queens foreclosure lawyers will be familiar with the foreclosure process and what steps need to be taken to complete it. Consider the following scenario: your lender has filed a complaint against you and initiated a judicial foreclosure. At this point, you need to provide answers to a number of questions, including:

Whether you choose to respond with a response or a move to dismiss depends on the circumstances.

●  What is the best way to write a motion to dismiss or a rebuttal?

●  How do you submit your request to dismiss or respond to the court once you have drafted it?

●  Must you also provide your lender with a copy of your answer or move to dismiss?

The relevant state and municipal procedural regulations, as well as the specifics of your case, will determine the answers to these questions. Self-study is an option, but be prepared to put in a lot of time and effort. To perform what a foreclosure lawyer can do in 40 minutes, you might need to set up 20 hours of your time.

Conversations and discussions with the bank will also be handled by your attorney. Most lawyers who specialize in foreclosure law are also skilled negotiators who can take care of these details on your behalf. Loss-mitigating homeowners will find this information especially useful. Your lawyer will communicate with the lending institution and will be able to immediately identify any violations of the regulations or mistakes that may halt the foreclosure process.

Last but not least, it is possible to halt the foreclosure process by retaining legal representation. This might help you locate a short sale buyer for your house or provide you additional time to find other housing.

What Are the Advantages of Hiring a Foreclosure Defense Attorney?

● Defend Your Rights

There is room for abuse in the loan modification procedure on the part of lenders. Despite the severe standards of federal law, not all lenders adhere to them.

If you hire a foreclosure attorney, you can increase the likelihood that your lender will comply with all applicable rules and regulations when processing your loan modification request. Borrower protection laws are followed so that you don’t lose any of your rights.

● Loan Modification

Foreclosure can be avoided outside of the legal system. You can negotiate with your bank to stop the foreclosure process with the aid of a lawyer.

The parties to a loan modification agree to modify the loan’s original terms and conditions. If you need help negotiating a reduced interest rate or an extension of the amortization periods, a lawyer might be a great asset. Likewise, he has access to the restructured loan’s updated terms and conditions. He’ll check to see that you’re getting a good deal on the loan modification and that no shady fees are being added.

● Avoid Foreclosure

Even an attorney will have a hard time making sense of the foreclosure procedure. A lawyer can help you through the unique procedures of your state’s court system. It’s possible you won’t be able to save your house from foreclosure if you miss a crucial deadline or wait too long to obtain legal assistance.

In order to prevent foreclosure, a lawyer can assist with paperwork, regulations interpretation, and strategy development.

You may be able to prevent foreclosure by working out a repayment plan with your lender. You can get back on track with your loan by making your regular payments plus the predetermined catch-up amount. The loan’s original conditions need not be altered to accommodate a repayment plan, therefore negotiations over one are typically straightforward.

Your lawyer may also be able to negotiate with your lender to reduce your interest rate for a set amount of time, after which you would return to paying the full rate.

● Representation in Foreclosure Mediation

Having legal counsel is highly recommended in jurisdictions where foreclosure mediation is a viable option. You can have an attorney represent you in foreclosure mediation hearings. Having an attorney negotiate with your lender to find a solution to avoid foreclosure is a wise move.

If you are worried about losing your home to foreclosure, know that there are solutions available to you. If you need assistance getting your financial life back on track, the Radow Law Group is here to help. Know that we recognize your current predicament and are here to help. You may rest certain that we put in the effort so that you do not have to. Contact foreclosure defense lawyer today to set up your no-cost initial consultation. To get moving, simply give us a call.