Techniques to Stop Foreclosure With the Help of a Defense Attorney
Foreclosure is a legal measure. It is the action of the mortgage lender who has the note on the home. The lender is for the most part a commercial bank. If you take out a mortgage loan, you will sign an agreement stating that you have to pay the loan monthly.
There are many reasons why the housing sector hurt terribly. The large job cuts,
the accelerated expansion of home prices and mortgages, and the wanton approval of unqualified borrowers all reinforced to the bursting of the housing bubble. These factors forged a tidal wave of home foreclosures regarding millions of families.
Understanding Foreclosure
Foreclosure is a legal measure. It is the action of the mortgage lender who has the note on the home. The lender is for the most part a commercial bank. If you take out a mortgage loan, you will sign an agreement stating that you have to pay the loan monthly. This is your contract with bank and if you violate the contract by not making payments, your house will be repossessed by the lender.
Again, there are many reasons why a homeowner can default on the monthly mortgage payments. You probably know already that there are hundreds of thousands of people who have lost their jobs and have to relocate some place else. In the past, the homeowner can simply sell the home and just move on.
The situation however is changed today. Many homeowners can not sell the house and move on because they are up side down on their loans. It means that your debt is greater than the total value of your home. So there are so many people who can not afford to pay their dues to the banks just to get rid of their homes. Foreclosure therefore would be inevitable. Without excess money to burn, they have completely stopped paying the monthly mortgage loan.
Steps You Can Do to Stop Foreclosure
There are several steps that you can do in order to stop foreclosure. First, you can try borrowing from another source in order to pay the mortgage loan. Another option is to refinance the loan. This means reconfiguring the original mortgage so that your new monthly payments would become much lower. Refinancing is ideal if you have good credit. With so many foreclosures, the banks are saddled with excess properties so they are more flexible now with refinancing option.
Your third option is to short sale the house. Short selling is a standard practice for beleaguered home owners. This option will not save your home but you may end up with a more favorable credit position. When you short sell, you are offering the property at a lower cost than what is owed. You need a good realtor for short selling and a bank that is willing to take a loss. Lastly, you can opt for bankruptcy and file for Chapter 13.
It would be best if you can get a lawyer if you will file for Chapter 13. Once your attorney intervened with bankruptcy filing, foreclosure will immediately cease. This means that you can gain more time especially if you have the best attorney who will represent you in court.
