The biggest mistake you can make in loan modification is ignoring the rules. Although your foreclosure defense attorney does the negotiating, it helps to be informed. You and your foreclosure defense attorney are dealing with lenders, so you still have to play by their rules. Here’s a list of loan mitigation “do’s and dont’s” to help you avoid pitfalls, and best navigate the mortgage mitigation process.

Know Your Rights:

Many mortgage contracts violate one or more lending laws (RESPA, TILA, etc.), and most go unnoticed. In addition, there are many new consumer protection laws that govern the foreclosure and mortgage mitigation processes. These violations can be significant in the mortgage mitigation process. They can give your foreclosure defense attorney the leverage needed to stop the foreclosure process, and negotiate a loan modification or foreclosure alternative. An experienced foreclosure defense attorney knows how to defend your rights and get the best results.

Don’t procrastinate:

The foreclosure process is designed to give you an opportunity to save your home, but that doesn’t mean it’s safe to procrastinate. The longer you wait, the harder it becomes for a foreclosure defense attorney to assist you with stopping the foreclosure process and resolving your mortgage. A delinquency becomes more costly to a lender each day, and their willingness to stop the foreclosure process and accept a loan modification or foreclosure alternative diminishes. The moment you foresee difficulties with your mortgage, call a foreclosure defense attorney, find out your options, and get the process started.

Work with your foreclosure defense attorney:

In addition to your lender or your loan modification attorney, it is imperative that you do your part and work closely with your foreclosure defense attorney. Make sure to submit your paperwork on time, answer questions honestly, and give your foreclosure defense attorney a clear picture of your financial situation. Many programs have strict deadlines for document submission, and missing a deadline can disqualify you.

Bankruptcy?:

Many people think that filing for bankruptcy can help them stop a foreclosure. Well it can, but sometimes only temporarily. For some homeowners, a bankruptcy is the appropriate solution for their troubled mortgage. in some cases, a bankruptcy can help you negotiate with your lender as well. In cases with an imminent sale date, bankruptcy is a useful tool to buy enough time to address the mortgage and keep the homeowner in the home., the best way to know if bankruptcy is right for you is to consult a bankruptcy attorney.

Have a backup plan:

Not everyone will qualify for loan modification. Maybe you’ve fallen too far behind, your lender is too difficult to work with, or you don’t need it after all. Regardless, it’s always wise to have a backup plan. Your foreclosure defense attorney understands other solutions, and there are many attractive foreclosure alternative programs, like short sales, deed-in-lieu and cash for keys. A good foreclosure defense attorney knows how to keep these options open for you through the negotiation process. Foreclosure alternatives control the damage to your credit by stopping the foreclosure process and creating a smooth transition. You may also be able to prevent a “deficiency judgment” against you that sometimes results from a foreclosure.

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