Foreclosure takes place when you fall behind on your house payments; foreclosure laws and procedures are quite complex and can vary from state to state. There are two types of foreclosure lawsuits: judicial foreclosure and non-judicial foreclosure. In judicial foreclosures, the lender has to go to court in order to get the foreclosure process started, which often takes several months. With non-judicial foreclosures, the right to foreclose and sell the property lies with the trustee (a 3rd party) and do not go through court.

Typical judicial foreclosures proceed as follows:

  • You become behind in your mortgage payments
  • The lender sends a notice of intent to begin foreclosure (at this point, you have the option to make up missed payments, with interest, and avoid a lawsuit)
  • The lender files a lawsuit
  • The lender provides you with notice of the lawsuit
  • You are given an opportunity to respond (usually between 15 and 30 days)
  • The lender sends out a notice of intent to sell
  • The auction is held
  • You are either permitted to stay or you get evicted

Loan Modification

A common alternative to foreclosure is loan modification. A loan modification is a permanent restructuring of a mortgage in which at least one of the terms of the loan agreement are changed in order to provide more affordable payments. These more affordable payments usually result from reducing the interest, converting from a variable interest rate to a fixed interest rate, or extending the length of the loan term. If you are considering filing for bankruptcy, our network of lawyers can assist you with that as well.

There are many different loan modification options, and it is beneficial to seek out the legal advice of an experienced attorney before making any decisions. To be eligible for loan modification:

  • You must be able to show that you cannot make your current mortgage payments, due to financial hardship
  • You must complete a trial period during which you demonstrate that you can afford the adjusted monthly payment
  • You must provide all of the required documentation, including a financial statement, proof of income, most recent tax returns, bank statements, and a hardship letter.

Forbearance Agreements

Another alternative to foreclosure is what are called forbearance agreements. Forbearance agreements are a form of short-term relief, in which the lender agrees to reduce or suspend payments for a certain period of time while not initiating a foreclosure. A loan modification agreement is a permanent solution, whereas forbearance agreements are temporary. Therefore, at the end of the forbearance period, you must resume full, regular mortgage payments and also additional fees (such as interest) that were acquired during the forbearance period.

If your missed mortgage payments are directly due to a temporary hardship, you may be able to acquire a repayment plan to spread out the past due balance over a certain number of months. During such a repayment period, a portion of the amount that is overdue is added on to each of your regular mortgage payments. At the end of your repayment period, regular mortgage payments resume.

Facing a potential foreclosure is a stressful situation and it is best to consider all possible options, such as loan modifications and forbearance agreements, before making a final decision. An attorney experienced in foreclosure legal services can be invaluable in assisting you in achieving the best possible outcome.

Related Posts
Fighting for Red Light Camera Traffic Ticket
If you are facing a red light camera ticket case, the best thing you can use for your defense is to challenge the clarity of the image captured. You better ...
READ MORE
Which terms should be there in your Lease and Rental Agreement
There are terms you need to look out for before you sign a lease or rental agreement. That’s because if you’re not careful enough, chances are, the landlord or landlady ...
READ MORE
Procedures when a law enforcement officer has reason to suspect a driver is intoxicated
Dui (DUI) means operating a automobile after consuming liquor or drugs that have affected a person's mental or engine skills. In most declares, a person will be considered "impaired" if ...
READ MORE
Important part in your dui case
You might not agree with the results of the police report for your DUI case the first time you see it. The report contains the results of the field sobriety ...
READ MORE
Got notice of eviction even before due date of rent agreement – WHAT TO DO
Your landlord cannot end your tenancy without a good cause and especially without the blessing of the court. If you have received a notice of termination even before the due ...
READ MORE
Why buy investment property under an LLC
An LLC or a limited liability company will benefit you in many ways if you decide to buy real estate properties. That's because it will provide plenty of protection in ...
READ MORE
Pay taxes on time
When April 15 is round the corner, it becomes a really stressful time for the tax payers. Paying of tax is imperative for one and all. Hence there are also ...
READ MORE
The landlord’s right in evict tenants
Every state in US has the unique Rent Control Acts and this is to be protected in the right manner surely. There should indeed be a valid reason behind everything ...
READ MORE
Affordable DUI attorney
Traffic violations don't seem to be all minor offences since they need major ramifications within the future. Reckless driving causes most of the traffic accidents and to stop that, traffic ...
READ MORE
Fighting for red light camera traffic ticket
Which terms should be there in your lease
Procedures after DUI
Important part in your dui case
Notice of eviction before due date of rent
Why buy investment property under an LLC
Pay taxes on time
Contact Affordable Lawyer
The landlord’s right in evict tenants
Affordable DUI attorney