Posted on: 18 August 2017
Whether it was an unexpected change in employment, health issues that led to expenses, or an alteration in personal circumstances that put you in this position, facing foreclosure on your home can be incredibly scary. After years of working hard to pay for a home of your own, you face the possibility of seeing all of your money, time, and personal investment into the property you reside in being taken away. Many homeowners in this position will feel they have to allow the foreclosure to happen and then file bankruptcy, or the foreclosure will happen as part of the bankruptcy process. However, there could be other options. Here are a few things you should know if you are facing foreclosure of your home.
You may be able to save your home through mortgage modification.
In some situations, a lender would prefer to modify the mortgage instead of foreclosing on your home simply because this is a more logical thing for them to do so they can retain the mortgage and you can continue making payments. Even though mortgage modification is not always brought up by a lender, make sure you talk to your mortgage holder about whether or not this is a possibility for you. This basically involves reconfiguring the loan so that you have lower payments you can afford. However, mortgage modification can also involve things like:
- changes in your interest rate
- reconfiguring late-fees and fees for non-payment so you can easier get caught up on the loan
- temporary changes in payments, such as forbearance, which means pushing now-due payments to the end of the loan term
Make sure you talk to an attorney about foreclosure defence.
If the mortgage lender seems unwilling to work with you and you are almost certain you are going to lose your home, it is well worth your time to talk to a foreclosure defense attorney. These attorneys are just as skilled and knowledgeable about mortgages, foreclosure, and the rules involves as the lender and the lender's attorneys. This means that they can better fight for you to help you keep your home.
The foreclosure defense attorney may be able to convince the lender to allow mortgage reconfiguration or may be able to negotiate some form of temporary terms to help you out of your situation. They can also help you find loopholes in your mortgage plan that can prevent the home from being foreclosed upon due to legal reasons.Share