Since the housing market fell apart just a few years ago and the mass business closures and downsizing, more homeowners have found themselves with mortgages they cannot pay. The domino effect of the failed housing industry and down economy has resulted in a rise in mass foreclosures. Many homeowners think there is nothing they can do but sit and wait out the process, but that is not true. A Foreclosure Defense Lawyer can help you. What are some options that can be explored?
Lower Payments
You may qualify to have your minimum mortgage payment lowered and/or pay lower interest on your mortgage. A lawyer with the knowledge of the laws regarding these situations can negotiate for you. When you can get your interest rates lowered and your payment lowered, it will relieve some of the financial stress households at risk of foreclosure experience.
Payment Extensions or Forbearance
Some situations may be eligible for payment extensions. When late payments and the default fees that come with them start adding up, you may qualify for extensions. This solution involves with the lender being flexible enough to waive/forgive at least some fees and allow the homeowner to make regular payments again instead of having to play catch-up with default fees. Sometimes payments can be added on to the end of the original mortgage to make up for missed payments. It depends on the situation and the lender. This option is called forbearance.
Short Sale
When the situation is not ideal for keeping your home or for options that allow you to make lower payments, a short sale can be done in lieu of foreclosure. This is a process that still affects your credit rating, but not as much as a foreclosure. Short sales are where the lender sells the house as quickly as possible at a loss which benefits everyone in the long run. A Foreclosure Defense Lawyer can give you the details of this process in your state.
Consequences come with any solution that stops a foreclosure. Some come with fewer consequences that are less apt to affect your lifestyle and credit than others. It takes a good lawyer to help you find the best solution for your situation.
