If you have received the 90-day pre-foreclosure notice or expecting it in your mail anytime soon, hiring a foreclosure defense attorney in the early stages can make a big difference. After carefully studying your case, the attorney will be able to present you with more options than in the later stages of the foreclosure process. Not only that, they may also be able to get you a great deal with the lender, allowing you to stay in your home while finding a way to adjust payments to make the situation favorable for both parties.
The following are a few ways in which your foreclosure defense attorney can work with your lender to avoid foreclosure:
1. Loan Modification
A loan modification is a process in which the lender and the borrower enter an agreement with adjusted terms of the loan. Your foreclosure defense attorney can help you with negotiating terms in order to get the best possible deal considering your financial situation. A loan can be modified in three different ways: your lender decreases the original interest rate; your lender extends the loan repayment period to reduce the amount to be paid per month; and your lender reduces the principle balance that is due on you. After you have reached an agreement, your attorney will review the documents with modified terms to ensure there are no illegal or hidden charges.
A forbearance agreement gives you a break from payments by suspending or reducing your payments for a short period. In exchange, you will have to make full payment when the agreement expires, along with an extra amount to compensate for the missed payments. Forbearance is the best option for people who have lost their job due to which they are unable to make payments. A forbearance agreement typically spans for three to six months, but can be extended depending on your specific situation.
3. Loss Mitigation Options
Another way to prevent foreclosure is to opt for a loss mitigation option. These are special programs that are a part of Fair Housing Administration loans and make you current with your payments. For example, you may be eligible for a “partial claim” that will bring the remaining amount into good standing. Your attorney will advise you on how to opt for loss mitigation options and ensure that you don’t end up in being in more trouble than you already are with the loan.
4. Foreclosure Mediation
Foreclosure mediation allows you work together with your lender to come up with an alternative to avoid foreclosure. Your attorney will negotiate on your behalf and make sure that the lender considers your situation when setting out new terms for the loan payment.
The thought of losing your home to foreclosure can be frightful, especially when you are alone in the fight. In order to increase your chances of saving your home from the clutches of your lender tenfold, the best way is to hire a foreclosure defense attorney. Contact Covert & Covert, LLP at (630) 717-2783 or online to schedule a free consultation to evaluate your legal options. We have offices in Schaumburg, Warrenville, and Naperville.