Many families are facing considerable financial strain and struggling to keep up with bills. If you have fallen behind on your mortgage, you may be at risk of foreclosure. To protect your credit and your household, gather the information you need to get your mortgage back on track.
What is Foreclosure?
When you take out a loan to buy a house, the loan is secured by the property. Your home acts as collateral for the debt, and if you stop paying the loan, the lender has the right to attempt to recoup the amount owed by seizing and selling the property.
You may also face foreclosure if you stop paying taxes on a paid-for property. It’s important to note that lenders must notify you of issues with late mortgage payments. It’s also important to remember that lenders generally don’t want to be property owners. If you’re willing to work with a lender, there is a strong possibility that you can avoid foreclosure if you act in a timely manner.
How to Hire an Attorney for Foreclosure
Hiring an attorney to represent you as you fight a foreclosure will be an additional cost that you will have to bear. Make sure that you get a detailed list of fees and any other charges so you can incorporate them into the costs of saving your property.
An attorney can also help you assess if you’re a good candidate for a bankruptcy filing, which can protect you from foreclosure. Be aware that bankruptcy can radically affect your financial future and should be considered carefully before you file.
Be aware that you can fight a foreclosure without an attorney. However, if there are legal questions about your loan, such as errors in the documents or errors on behalf of the lender, you may need an attorney to help you tackle these issues effectively. It would definitely be of your best interest to look into recruiting or investing in a legal aid.
A Few Ways to Stay Out of Foreclosure
If at all possible, it is crucial that you act during the preforeclosure period. Per federal law, your home can’t be foreclosed upon until you are 120 days past due on your payments.
During those 120 days, you want to address the default. Once you start that process, depending on the law and the lender, you should have between 30 and 90 days to catch up on your mortgage payment. Be aware there may also be fees and penalties that you will need to address.
It may also make sense to try to sell the property before it is foreclosed upon. You will need to be completely open about your situation with realtors representing you and the buyers. Be prepared for low offers if you are a motivated seller.
Foreclosures can be avoided with prompt action. Open communication with your lender is key to getting your loan back in good standing during the preforeclosure period. If you find errors in the document, or if communication is simply not possible, the help of an attorney may be necessary.
