Professional foreclosure defense attorneys can put the power back in your hands so you have more control over your future finances and the fate of your home. There are many ways to avoid this, save money, and prevent your credit from being damaged. So before walking away from your home, consider the help of a professional.
Extensions and Forgiveness
Some homeowners facing foreclosure are simply stuck due to lack of time or defaults and fees that are adding up too quickly. They may still be able to salvage their home, but will require some flexibility on the lender's behalf. A foreclosure defense attorney can request the lenders to give payment extensions as well as forgive some fees and defaults that may have accrued.
Lower your Monthly Payments and Interest Rates
Most people find themselves unable to make their minimum mortgage payments, or that the interest has inflated to an unreasonable amount. It is especially difficult due to excess financial strain caused by the weak economy and job market, as well as rising prices elsewhere. Many people have found themselves torn between the mortgage payment, putting food on the table, and the electricity bill. This kind of attorney can help you negotiate a lower monthly payment and interest rates with your lender. Rate reduction can immediately relieve financial stress and help you get back on your feet and saving money again. It will also keep you and your family in your home.
Forbearance
In certain circumstances, this kind of lawyer may be able to convince a lender to agree to a forbearance period. During this time, your monthly payments may be greatly reduced or temporarily stopped altogether. Once the forbearance is over, you will resume payments as usual, or may be able to make some further loan adjustments.
Short Sale
If paying a reduced monthly payment is still financially impossible, you can negotiate a short sale with your lender. This process is far less damaging to your credit. The bank will attempt to sell the property quickly at a small loss, which helps both parties avoid the high costs and consequences of this situation. Some lenders require a certain set of criteria to request a short sale; however, a skilled defense lawyer can often fight for those who don't initially qualify for this option.
Deed in Lieu of Foreclosure
Another option for is to request a deed in lieu. In the scenario, the homeowner returns the property to the bank and is released from any further obligations. Now, the attorney is invaluable under these circumstances because many lenders will demand a deed of lieu with recourse, which means they can later sue the former homeowner if the sale amount is less than the original loan, therefore collecting any difference lost. It's an easy trap to fall into, especially for a homeowner under duress, which is why a foreclosure defense attorney can help you ensure a deed in lieu without facing further financial consequences.
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