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Defense of Foreclosure
By Susan Willets | August 31, 2008
Foreclosure can be a pretty scary threat to any homeowner — whether you’ve recently bought your first home or have owned real estate for years. In 2007/2008, the rates for foreclosure and subsequent real estate possession skyrocketed with foreclosure rates at an all-time high.
If you’re reading this, my guess is you’ve found yourself on the brink of your own home foreclosure. Perhaps, you were unfortunate enough to have bought your home with an adjustable rate mortgage. Maybe you’ve recently had your income greatly reduced due to unemployment, divorce, or natural disaster. Whatever the reason, now is the time to learn exactly how to save yourself — and your home — from foreclosure. In this article, we will discuss all you need to know about hiring the right lawyer, scams to watch out for, etc.; in short, how to defend your home, yourself, and your credit from foreclosure before it’s too late.
Hiring a Lawyer
It is best to start seeking out a foreclosure attorney before you have missed too many mortgage payments and gone into serious default; as they can protect you from making unwise decisions or becoming victim of the many foreclosure help scams that have sprung up in the wake of the national foreclosure crisis. Here is how to find the best attorney to help:
- Instead of enlisting the services of a TV or yellow pages lawyer — without knowing their reputation or credentials — your best stop is to call or email your local bar association for a list of reputable attorneys that could help.
- Second, contact your local bankruptcy court. Bankruptcy court offers a great directory of repossession, foreclosure, and debt lawyers, who are best acquainted with your particular plight.
- Next, once you have chosen a few attorneys for consideration, make appointments for consultations. Know that there is typically a fee associated with an attorney consultation.
- Lastly, interview each attorney thoroughly on accreditations, references, common protocol, etc., and cross-reference from one consultation to the next. Remember, to trust your instincts, and watch out for any lawyer that has too much to promise you. Let them realistically and in detail, convince you that they can best address your needs.
What To Expect
Once, you have found the right attorney, rest assured that you will be, for the most part, safeguarded from any foreclosure scams offered to vulnerable homeowners such as yourself. So, what else can you expect in the midst of imminent or future foreclosure?
- Once you fall behind in payments, even a month or two, you will be mailed an “intent of foreclosure” certified document from your mortgage lender. Public notice in the newspaper is given, as by law.
- From here, you can contact your bank or lender, as your attorney advises, and, if possible, make full payment of your defaulted mortgage. Frequently, the bank or lender will accept partial payment as long as it is the majority of what is owed.
- However, if you are unable to pay at all, the bank will take you to court. From here, the judge will deem the intent to foreclose worthy, and schedule a public auction date for your home.
- If your home equity is more than the auction price, you may be able to get some of the money back. As always, go over everything with your attorney. Conversely, if the auction price is more than your home equity, you may be forced to pay the difference.
The very best advice to take if you are defaulting or about to default on your mortgage is to contact a lawyer immediately. They will make you aware of your options, and in many cases — depending on how far you are in default — they can help you to best approach your lenders to come to some sort of payment agreement to avoid court and foreclosure altogether.
Topics: Avoid Home Foreclosure |