Most people do not possess enough money to buy a house with cash, thus they opt for a mortgage to purchase a house by making monthly payments over several years. However, over time, there can be a change in circumstances; excessive debt and financial difficulties may render them unable to make their monthly mortgage payments. In such cases, the lending financial institution may decide to initiate foreclosure to recover the balance.
Facts available on Federal Deposit Insurance Corporation’s website shows that 250,000 new families enter into foreclosure every quarter in the United States. The worst decision one can make under such circumstances is to delay the process by ignoring the foreclosure problem i.e. not taking any action. If you are facing foreclosure, you must take proactive steps to avoid foreclosure at any cost.
The first and foremost step should be to initiate negotiations with the lender to offer a lower interest rate, an extension of the loan, or temporary reduction in the monthly payment. If the negotiations do not succeed, your next step should be bringing an experienced foreclosure defense lawyer on board and prepare for a foreclosure battle in the court.
There are different defenses available in case a threat of foreclosure is looming over your head. Your lawyer will try to find any mistakes that are made by the lender in the mortgage agreement or foreclosure processes such as calculation mistakes by the mortgage provider, improper notice of default, or failure to adhere to state-required procedures. Though most of the mistakes can be corrected and may not prevent foreclosure, it will buy you enough time to manage your finances and prepare a better defense.
Moreover, a proficient foreclosure defense lawyer is equipped with extensive knowledge related to foreclosure and astute negotiation skills, which will allow them to negotiate with the lender much more effectively during the settlement. Using their sharpened convincing skills, your attorney is likely to help you cut a deal to prevent foreclosure, possibly in the form of favorable mortgage terms that fit your budget.
A seasoned foreclosure defense lawyer may also employ several other techniques to keep your rights as a borrower protected and prevent foreclosure. For instance, they may try to prove that the terms of the mortgage agreement were unconscionable, thus the contract is not binding and consequently, not enforceable.
Some mortgage contracts and trust deeds also include a promissory note, which enables the lender to pursue their payment through your other financial assets. Your lawyer may seek short sale where the lender allows you to sell your home at a lower price than a mortgage or employ bankruptcy defense to ensure that your private assets remain protected.
There are several legal and technical complexities involved pertaining to the foreclosure process, which makes it extremely difficult for an individual to comprehend and come up with a sound strategy. However, a skillful attorney will guide you through the process and help you devise a comprehensive foreclosure defense to mitigate the situation and find an optimal solution.
If you wish to know more about this subject or speak with an experienced foreclosure defense lawyer, contact the offices of Covert & Covert LLP at (630) 717-2783 and schedule a free consultation session.