There are ways to get out of a foreclosure law case or properly defend a foreclosure case; however, the most preferred is that of the loan modification. There are different options and choices to avoid and/or stop a foreclosure such as by a forbearance, a deed in lieu of foreclosure, a short sale, bankruptcy, short pay or by just selling your home at loan value (as defined below). We can aid you in obtaining a LOAN MODIFICATION (where you can get the bank to change your mortgage and/or loan agreement in order for you to KEEP YOUR HOME OR INVESTMENT PROPERTY and make it affordable) or with a SHORT SALE (where there is buyer willing to buy your property lower than the amount you owe on your mortgage with the bank approving such sale for less than what is owed on the mortgage). IF you are already in a foreclosure you can still get a loan modification or short sale by working with an experienced foreclosure defense lawyer.
IF YOU OR SOMEONE IS EXPERIENCING A FORECLOSURE THERE ARE OPTIONS FOR YOU
We can aid you in obtaining a LOAN MODIFICATION (where you can get the bank to change your mortgage and/or loan agreement in order for you to KEEP YOUR HOME and make it affordable). IF you are already in a foreclosure you can still get a loan modification. You do not need to be in foreclosure to obtain a loan modification.
There are other ways to get out of a foreclosure; however, the most preferred is that of the loan modification. Four other choices to avoid and/or stop a foreclosure is by a forbearance, a deed in lieu of foreclosure, a short sale, or by just selling your home (as defined below).
BANKRUPTCY should always be the last choice! However, bankruptcy protection is available and our firm can assist you with this area of the law. Always consult an attorney before choosing any of these options.
Forbearance
Forbearance is where a bank will postpone foreclosure in order to give the borrower time and an opportunity to make up for overdue payments.
Deed in Lieu of Foreclosure
Deed in Lieu of Foreclosure is where a homeowner cannot make the mortgage payments and cannot find a buyer for the house. In this situation many lenders will accept ownership of the property in place of the money owed on the mortgage.
Short Sales
A Short Sale is where there is a sale of a house to a third party in which the proceeds fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the bank can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what he owes. Ultimately, a short sale will save your credit ratings.
What is a Foreclosure??
Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults and the lender tries to repossess the property, courts of equity can grant the borrower the equitable right of redemption if the borrower repays the debt. While this equitable right exists, the lender cannot be sure that it can successfully repossess the property, thus the lender seeks to foreclose the equitable right of redemption. Other lien holders can also foreclose the owner’s right of redemption for other debts, such as for overdue taxes, unpaid contractors’ bills or overdue homeowner’s association [HOA] dues or assessments.
The foreclosure process as applied to residential mortgage loans is a bank or other secured creditor selling or repossessing a parcel of real property [LAND OR HOUSE THAT IS NOT MOVABLE] after the owner has failed to comply with an agreement between the lender and borrower called a “mortgage” or “deee of trust”. Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, the lender can sell the property and keep the proceeds to pay off its mortgage and any legal costs, and it is typically said that “the lender has foreclosed its mortgage or lien”. If the promissory note was made with a recourse clause then if the sale does not bring enough to pay the existing balance of principal and fees the mortgagee can file a claim for a deficiency judgement. See http://en.wikipedia.org/wiki/Foreclosure for definition and further discussion on the subject. For explanations please email us and we are more than happy to give you a free consultation.
