Life can be difficult, especially when the bills start to pile up and you cannot find a way to get caught up on them. Then, things can go from bad to worse if your mortgage lender decides to start foreclosure proceedings on your home. If this happens, you should take action quickly if you want to keep your home, and the best thing to do is visit a lawyer that specializes in legal foreclosure defense. Here are some options the lawyer might suggest that can help stop a foreclosure.
Apply for a loan modification
Hiring a lawyer who is skilled in stopping foreclosures is a great way to find out what methods are available to stop this from happening. One method the lawyer will talk to you about is a loan modification, but this method will only work if your lender agrees to modify your loan.
You can complete a loan modification on your own, just in case you were wondering; however, having a lawyer do it for you is usually a more effective method. With this option, your lawyer will negotiate new terms for your loan, and these new terms will include catching you up on your past-due fees and balance.
If you can come up with an agreement, you will get to keep your house, but your payments and terms of the loan will be different. In many cases, loan modifications include decreases in monthly payments, which means your loan will be more affordable for you if your lawyer can get this to go through.
File for bankruptcy
If your lender refuses to agree to a loan modification, your lawyer will probably suggest filing Chapter 13 bankruptcy. This offers a way to keep your home too, and it involves making payments for up to five years to a bankruptcy trustee. The trustee uses this money to repay your debts.
This option is a great choice not only to help you keep your home, but it is also very helpful if you have other debts you owe. Your repayment plan in Chapter 13 will help you repay all the debts you have. When you complete the repayment plan, you should be in good financial condition, especially compared to the state you are currently in.
If you want to keep your home and have already received the foreclosure documents, don't wait too long to seek help. Instead, contact a bankruptcy lawyer in your area today.Share