Foreclosure Defense Techniques

Foreclosure Defense Techniques

Foreclosure defense techniques can include a broad set of legal procedures and/or strategies distressed homeowners may use in trying to avoid foreclosure. Many homeowners are surprised to learn a number of foreclosure defense techniques may be available to help them with their difficult situation.

While avoiding foreclosure, some options may require homeowners to vacate their homes and other options may allow homeowners to keep their homes. Homeowners should consider learning as much as possible about the common techniques used in foreclosure defense in order to prepare themselves for dealing with the foreclosure process.

Foreclosure Defense Techniques – Leaving The Home

Foreclosure defense techniques that require homeowners to leave the home can be a smart option for homeowner who are ready to leave their homes and/or know their mortgages have become far too unaffordable. Not all homeowners may qualify for the foreclosure defense techniques below, so it is important for homeowners to contact their mortgage lenders or a foreclosure defense attorney as soon as possible to review available options.

Foreclosure defense techniques that typically require homeowners to leave the home commonly include :

    • Short Sale

A short sale commonly involves selling the home for less than the remaining unpaid balance on the mortgage.

    • Deed in Lieu of Foreclosure

Deed in lieu of foreclosure commonly involves transferring the deed of the home to the mortgage servicer in exchange for release from mortgage obligations.

    • Filing Chapter 7 Bankruptcy

Chapter 7 bankruptcy commonly involves selling any nonexempt assets in order to repay creditors and debts may be discharged.

Foreclosure Defense Techniques – Staying in The Home

Foreclosure defense techniques that allow homeowners to stay in the home may be more difficult to qualify for and may only be a smart option for homeowners whose financial situations have since stabilized.

Foreclosure defense techniques that usually allow homeowners to stay in the home commonly include:

    • Mortgage Forbearance

A mortgage forbearance commonly involves mortgage servicers suspending foreclosure proceedings while a homeowner tries to become current on their mortgage.

    • Repayment Plan

A repayment plan commonly involves spreading any delinquent mortgage payments across the life of the loan usually raising monthly mortgage payments to some degree.

    • Loan Modification

A loan modification commonly involves negotiating with mortgage lenders to modify the original terms of the mortgage agreement to reduce interest, principal, and/or monthly payments.

    • Chapter 13 Bankruptcy

Chapter 13 bankruptcy commonly involves restructuring debts such that an individual is able to make monthly repayments to creditors.