Avoiding foreclosure can be a difficult process for some homeowners depending upon their current financial situation and how they respond to the foreclosure process. There can be a number of foreclosure defense strategies available for homeowners to pursue, but not every option may be the best fit for every situation.
Homeowners should consider all possible options for avoiding foreclosure in order to make a smart decision. It can be wise to speak with an experienced foreclosure defense attorney since these attorneys typically have years of experience in dealing with mortgage lenders and the foreclosure process.
Avoiding Foreclosure Options
Avoiding foreclosure options can differ typically based upon how far along the homeowner is in the foreclosure process. Often times, there are more foreclosure defense options available to homeowners early on in the foreclosure process as opposed to later in the foreclosure process. It can be a good idea to reach out to mortgage lenders as soon as a foreclosure notice has been received to consider options for avoiding foreclosure as soon as possible.
Four popular choices for avoiding foreclosure can include:
- Mortgage Loan Modification – Mortgage loan modifications can be a great way to avoid foreclosure and make the mortgage more affordable for homeowners. Loan modifications commonly involve an agreement from mortgage lenders to modify the original terms of the mortgage agreement. This may help homeowners by preventing foreclosure, reducing monthly mortgage payments, reducing interest and reducing principal. It is important to note, loan modifications can be very difficult to qualify for and not every homeowner may qualify. Additionally, some mortgage lenders may choose to not offer this option.
- Mortgage Forbearance – Mortgage forbearance can be a great way to temporarily avoid foreclosure for homeowners experiencing a short term financial difficulty. Mortgage forbearances commonly involve an agreement from mortgage lenders to temporarily suspend foreclosure proceedings so homeowners can catch up on delinquent mortgage payments. If homeowners can successfully bring the loan current than foreclosure proceedings may be stopped indefinitely. Conversely, if homeowners are experiencing a long-term financial hardship and are unable to bring the loan current during the forbearance period, then foreclosure proceedings may resume.
- Deed in Lieu of Foreclosure – A deed in lieu of foreclosure can be a great way to avoid foreclosure when the homeowner knows they are ready to leave the home. A deed in lieu of foreclosure commonly involves transferring the title of the home to the mortgage lender in exchange for release from mortgage obligations. This can be a smart option for avoiding foreclosure for homeowners who know they cannot continue to afford the home.
- Short Sale – A short sale can be another great way to avoid foreclosure when homeowners are ready to leave the home. Short sales commonly involve selling the home for less than the remaining unpaid balance on the mortgage. The proceeds from the sale are typically used to repay some or all of the unpaid mortgage balance. This can be a smart option for avoiding foreclosure for homeowners who know they cannot continue to afford the home, but keep in mind, mortgage lenders may choose to seek a deficiency judgment shortly after.
Can I Stop Foreclosure and Keep the Home?
Oftentimes just stopping foreclosure alone is not enough and homeowners facing foreclosure ask, “Can I stop foreclosure and keep the home?” The truth is, some foreclosure defense options may allow homeowners to stop foreclosure and keep the home while some foreclosure defense options may require homeowners to leave the home.
If you are wondering, “Can I stop foreclosure and keep the home,” you may wish to explore these foreclosure defense options:
- Loan modification
- Repayment plan
- Mortgage forbearance
- Chapter 13 bankruptcy
Can I Stop Foreclosure and Leave the Home?
Sometimes homeowners may recognize their homes have simply become too unaffordable and/or they realize they are facing a potentially long-term financial hardship. In these cases, homeowners facing foreclosure may just be ready to leave and ask, “Can I stop foreclosure and leave the home?” Luckily, there may be several foreclosure defense options available to help homeowners avoid the negative effects of foreclosure while leaving the home.
If you are wondering, “Can I stop foreclosure and leave the home,” you may wish to explore these foreclosure defense options:
- Deed in lieu of foreclosure
- Short sale
- Chapter 7 bankruptcy
Mortgage litigation can be a highly empowering tool for distressed homeowners to take legal action against their mortgage lenders. During the burst of the hosing bubble, many mortgage lenders became notorious for bad loan origination and/or improper foreclosure proceedings. It can be very difficult for homeowners to determine how to protect and exercise their rights against their mortgage lenders. Fortunately, mortgage litigation attorneys can be very adept at stopping wrongful foreclosures and fighting against bad loan origination.
Mortgage Litigation & Bad Loan Origination
Mortgage litigation may help homeowners who feel their payments or rates have unexpectedly turned out higher than what was promised. Homeowners may recognize bad loan origination from one or more of the following:
- Larger monthly mortgage payments than originally promised
- Higher interest rates than described in the mortgage agreement
- Unnecessary fees
- False loan terms than originally promised
Mortgage Litigation & Wrongful Foreclosure
Mortgage litigation may also help homeowners who feel they have been wrongfully foreclosed upon. In some cases, mortgage lenders may initiate the foreclosure process under false pretense. Common instances of wrongful foreclosure may include:
- Failure to notify the homeowner properly
- Not providing the payoff figures
- Not providing the homeowner fair communication
- Unfairly or not considering a loan modification or loss mitigation request
- Breach of loss mitigation agreement
In the event that one of the instances listed above occurs, homeowners may be able to take action with a mortgage litigation case. It is important to note however, homeowners will not likely be able to take action without the help of an experienced mortgage litigation attorney. These attorneys are typically very experienced in dealing with mortgage lenders and the foreclosure process. Additionally, these attorney can help identify instances of wrongful foreclosure and build a case for homeowners to take action against their mortgage lenders.