WE OFFER HELP TO THOSE BEHIND ON MORTGAGE PAYMENTS
Falling behind on mortgage payments is a challenging position to be in, both emotionally and financially. Often, it isn’t due to financial recklessness but unforeseen life events. This can include:
- Loss of a job
- Reduced income
- Health crisis
- Divorce
- Death of a spouse
- Financial problems related to medical treatment
These events can disrupt your financial equilibrium, making it challenging to prioritize mortgage payments over other critical expenses.
We understand and empathize with these difficulties. On such occasions, we offer specialized solutions tailored to your unique situation. One of the solutions we give is that of bankruptcy as a defensive strategy. Bankruptcy can sound intimidating, but in the face of foreclosure, it can serve as a vital shield. Declaring bankruptcy can halt foreclosure proceedings, regardless of how far they’ve progressed. It imposes an “automatic stay” that prohibits lenders from collecting debts. Bankruptcy offers protection to other types of debts as well and can provide temporary relief if you are struggling financially.
Another piece of advice we offer our clients is mortgage refinancing. This is a reset button that’s ideal for those who still have a steady income and have a commendable credit score. Mortgage refinancing means replacing your current mortgage with a new one, often with more favorable interest rates or terms. This can reduce monthly payments and provide more extended payment terms. Depending on your situation and credit history, you could explore refinancing with a range of lenders – from hard money lenders to both conventional and unconventional ones. It’s essential to keep in mind the refinancing fees. Always compare rates and terms to ensure you’re making a decision that’s both financially sound now and beneficial in the long run.
RECEIVED A FORECLOSURE NOTICE? HERE’S WHAT TO DO
Even after receiving a foreclosure notice, you still have options. One potential strategy is to file a lawsuit against the lender. By doing so, you challenge the foreclosure and create an opportunity to either delay or halt the process altogether. Especially in the case of judicial foreclosures, where the foreclosure process is managed by the courts, legal action is crucial. It’s vital to pinpoint instances where the lender may not have followed due process, such as failing to adhere to mediation requirements or infringing upon homeowners’ rights as laid out in the Homeowner Bill of Rights. Remember, these legal avenues can be intricate, and you’ll need to work with a qualified attorney to navigate them and defend your rights as a homeowner.
WHAT HAPPENS IF YOU LOST YOUR HOME AT A FORECLOSURE SALE
Losing your home in foreclosure leaves a mark on your financial and emotional well-being. This setback often results in a dip in your credit score, making it harder to secure finances for another property. Such a foreclosure can remain on your financial records for up to 7 years, further complicating your efforts to rebuild your financial health.
Unfortunately, lenders view a past foreclosure as a red flag, interpreting it as a potential risk for future default. This perception means you might face higher interest rates when you try to borrow again. Additionally, the process of qualifying for loans may be longer and more stringent.
However, it’s crucial to remember that there’s a path forward. Seek legal recourse to mitigate some of these challenges. Engage with a foreclosure attorney and approach the court to help you through the intricacies of the legal system. These attorneys can help you address and potentially alleviate the repercussions of a foreclosure sale. With proper guidance and determination, you can navigate this challenging phase and set the foundation for a brighter financial future.
IN CASE YOU CANNOT PAY
Financial setbacks can strike unexpectedly, making it impossible to cover essential payments. If you find yourself unable to meet your mortgage commitments, initiate a conversation with your lender immediately. Addressing the issue proactively, especially before the lender contacts you, illustrates your intention to resolve the situation and not avoid your responsibilities. Be transparent about the challenges you are facing and clearly communicate your needs to the lender. Early intervention is essential. Before you fall behind on payments, seek solutions diligently. Addressing potential foreclosures or the aftermath requires prompt action. By contacting your lender at the earliest sign of trouble, you maximize your chances of finding a mutually agreeable solution and preserving your home.
HOW CAN YOU STOP FORECLOSURES AT THE LAST MINUTE?
Finding yourself dealing with a foreclosure is a nerve-wracking experience. The imminent loss of your home not only raises concerns about where you’ll live but also the potential whispers of neighbors and the lasting scar it might leave on your credit score. While the clock may seem to be ticking relentlessly, there are still avenues you can explore to avert the crisis. In the ensuing sections, we’ll share tips to help you swiftly deal with foreclosures.
FILE FOR BANKRUPTCY
One of the most effective immediate actions you can take to halt a looming foreclosure is to file for bankruptcy. Enlisting the expertise of a lawyer well-versed in foreclosure law can be a game-changer in such scenarios. Depending on the specific type of bankruptcy filed:
- You can get a temporary reprieve, delaying the foreclosure process for a few months. This buffer can give you the crucial time you need to strategize and reassess your financial situation.
- You can stop the foreclosure process altogether and get a more permanent solution.
A knowledgeable attorney will guide you in choosing the most suitable bankruptcy type for your situation, ensuring that you leverage the legal system to your advantage.
FILE A LAWSUIT AGAINST YOUR LENDER
When faced with a non-judicial foreclosure, which is a foreclosure that occurs outside the court system, you can file a lawsuit against the lender. This legal action challenges the foreclosure process and can potentially stall or stop it. However, there are specific grounds you must establish for this lawsuit to hold weight:
- Demonstrate that the lender did not adhere to local mediation requirements, failed to negotiate in good faith, or bypassed the process altogether.
- Show that the lender did not present a valid promissory note, especially pertinent to properties in Texas.
- Highlight instances where the lender did not comply with the stipulated demands of the foreclosure process.
- Prove that the lender made a mistake, whether in calculations, notifications, or other aspects of the mortgage agreement.
Engaging a lawyer specialized in foreclosure law is critical in such scenarios. They can provide invaluable counsel, guiding you through the intricacies of the lawsuit and ensuring all necessary documentation is in order. This can help you get a favorable outcome.
However, before choosing the legal route, assess your chances of success. Keep in mind that legal battles are expensive. Attorney fees and associated costs can accumulate quickly. Weigh the potential benefits against the associated expenses and risks.
EXPLORE LOAN MODIFICATION AS A SOLUTION
Loan modification provides hope for homeowners on the edge of foreclosure. Surprisingly, a significant number of individuals at risk of foreclosure do not approach their lender out of fear or embarrassment, mistakenly believing that this outreach might expedite their home’s repossession. However, it’s essential to understand that foreclosure isn’t just costly for homeowners; it’s a financial burden for lenders, too. Lenders, when presented with a genuine case, often prefer facilitating a homeowner to continue their payments rather than going through the resource-incentive foreclosure procedure.
Approach your lender as soon as you foresee payment difficulties. This proactive communication demonstrates your commitment to resolving the situation. You can get a loan modification to give you a fresh start. With loan modification, the terms of your original mortgage are altered, typically making the monthly payments more affordable. This postpones the foreclosure process. Under federal law, the lender cannot simultaneously advance the foreclosure process while a loss mitigation application is under review. If your loan modification application is approved, the foreclosure proceedings halt, and you commence with the revised payment terms. This offers a viable pathway to retain your home and rebuild your financial stability.
However, it’s crucial to tread this path carefully. Failing to meet the new payment terms punctually might reignite the foreclosure process, playing you back to square one. Always ensure that the modification terms are genuinely feasible for your financial situation.
CONSULT A HOUSTON-AREA FORECLOSURE ATTORNEY
Every foreclosure scenario comes with its own set of unique circumstances and intricacies. If you’re navigating this challenging path, especially in the Houston area, seeking expert guidance from a local attorney can be invaluable. A foreclosure attorney will:
- Provide a personalized assessment. The attorney will thoroughly review your financial predicament. Their familiarity with the local laws and regulations ensures they’re well-equipped to offer tailored advice fitting your specific situation.
- Offer strategic counsel. A foreclosure attorney will provide insights and strategies to halt or, at the very least, delay foreclosure proceedings. This might include leveraging local ordinances, understanding lender nuances, or advising on specific documentation needs.
- Help you buy time. While the ultimate aim is to prevent foreclosure, in the short term, an attorney can assist in delaying the proceedings. Even gaining an additional month can be critical, offering you a window to explore alternative solutions to arrange finances.
However, as with all professional services, there are costs involved. While attorney fees and associated expenses might seem daunting, it’s crucial to measure them against potential benefits. With their expertise, a foreclosure attorney offers a fighting chance to retain your home and ensures you’re making informed decisions every step of the way.
