Foreclosure Prevention Options!
Understanding your foreclosure prevention options is a good way to begin your search for assistance. These days, struggling homeowners are bombarded with confusing information about available programs and finding trustworthy representation. This article will help you understand your foreclosure prevention options, and explain why you should find legitimate foreclosure defense attorney assistance to help you obtain the best possible outcome.
This page will help you understand your basic foreclosure prevention options, and the advantages and disadvantages of each. If you only take one thing from this analysis, it should be, “hire a foreclosure defense attorney”, or hire a foreclosure litigation attorney, but don’t try to handle the foreclosure process yourself!
Foreclosure Prevention Options – 1. Hire an Attorney
An experienced foreclosure defense attorney is in the best position to help you understand your foreclosure prevention options, and get you the best results.Accordingly, we strongly recommend foreclosure defense attorney representation for any distressed homeowner.
These days, you can find an honest foreclosure defense attorney that provides legitimate, affordable representation for homeowners. Your job is to choose a foreclosure defense attorney IN YOUR STATE that offers the scope of services you need.
Foreclosure Defense Attorney
There any many law firms that offer foreclosure defense retainer agreements. These firms will typically do everything possible, short of filing lawsuits, to resolve your mortgage. These attorneys are best classified as “loan modification” attorneys, and their legal staff performs the majority of the work, so don’t expect to speak with the attorney much. They are quite competent to prevent a foreclosure and obtain a loan modification or other foreclosure alternative. However, make sure that your retainer agreement covers attorney functions. These functions include answering complaints, filing counter-claims and motions, and all court-related matters, especially in a judicial foreclosure state.
The majority of foreclosure defense attorneys and law firms offer just such a retainer. It allows them to offer these services for a few thousand dollars in affordable monthly payments. These firms typically have the experience to offer a substantial value to their clients, and are recommended over non-profit assistance or attempting the process yourself.
Litigation Attorney – Sue Your Lender!
If you want to hold your lender legally responsible for any violations of your rights and pursue a lasting solution, you will need a foreclosure litigation attorney. First of all, you will need to have some legitimate causes of action. A reputable foreclosure litigation attorney will evaluate your entire case. This evaluation should expose any legal issues arising from lending violations, title issues, the servicing of your loan, any attempts to obtain assistance, as well as the foreclosure process itself.
These attorneys can stop the foreclosure process by filing a lawsuit against your lender, accompanied by an injunction halting the foreclosure or eviction process. These attorneys will represent you in court, mediation, and hearings. They can also file lawsuits, injunctions, motions, counter-claims, and everything required during the legal process. Obviously, suing a bank is not cheap, and this type of representation requires significant resources.
Foreclosure Prevention Options – 2. Use a Non-Profit
There are many non-profit organizations that can provide you with assistance and the levels of service can differ greatly. One of the toughest challenges of working with a non-profit is that most have limited resources and are restricted in their abilities. You should also understand that The Federal Trade Commission bars ANYONE other than an attorney from representing distressed homeowners in ANY debt negotiation.
Non-profits can basically help you submit an application for assistance. They can also offer you general advice on navigating the process, but there is a fine line that they must skirt. They cannot give you legal advice. Unfortunately, this means the negotiating will be left to you. Do you have the time, knowledge, and experience to handle the complex negotiation of a mortgage like a foreclosure defense attorney does?
For non-profits, we recommend that you use the U.S Department of Housing and Urban Development’s (HUD) list of Approved Housing Counseling Agencies. However, you should be clear that we are strong advocates of foreclosure defense attorney representation. Many non-profit organizations will refer a distressed homeowner to a foreclosure defense attorney anyway. We recommend skipping non-profits and speaking to a foreclosure defense attorney from the start.
Foreclosure Prevention Options – 3. Do it Yourself
While this may seem an inviting option on its surface, it is not recommended.
If your bank indicates that they are willing to “work with you”, you should be cautious. Many lenders are notorious for operating what is often referred to as the “dual-track” system. While your request for assistance is “under review”, the bank is simultaneously moving forward with foreclosure. Although this practice is now illegal in most states, evidence of its continued practice is abundant.
Most of the programs available to homeowners today have rules which are difficult to follow and stringent deadlines. Breaking those rules can result in the denial of your application. Just keeping up with the process can become a full time job, even for an experienced foreclosure defense attorney. Many homeowners who choose this route end up having to hire a foreclosure defense attorney anyway. If you have had difficulty applying for mortgage relief assistance, or believe that you have been wrongfully denied, you should consult an experienced foreclosure defense attorney.
Foreclosure Prevention Options – 4. Do Nothing
You can also just do nothing, and the foreclosure process will run its own course. You will eventually be evicted from the property, so expect just that. Taking this path will result in the most damage to your future. You will be forced to leave your home, and both the foreclosure and eviction will become matters of public record, listed on your credit report. Where applicable, you may also end up owing a hefty deficiency balance.
With all of the programs available to homeowners these days, this option does not make much sense. In addition, many legal professionals now have extensive experience in foreclosure defense and individual litigation, that can represent your interests and resolve your troubled mortgage.
Even if you can no longer afford your home, most lenders are willing to negotiate a settlement which will allow for a smooth transition that will not damage your credit the way a foreclosure and eviction will. Lenders are amenable to these solutions because it spares them the heavy costs of the foreclosure and eviction processes. Sometimes lenders offer cash for the return of the property, so don’t just let foreclosure run you over!