When a homeowner falls behind on his or
her mortgage payments, they may be facing the loss of their home through the
legal process known as foreclosure. There are several ways to avoid foreclosure,
including pursuing a loan modification with your mortgage lender, which
involves modifying the terms of your mortgage contract in a way that makes it
easier to make your payments and allows you to keep your home. Importantly,
modifying a contract can require significant negotiation, so it is highly
advisable for anyone seeking a loan modification to talk to an experienced
lawyer.
When you first meet with an attorney,
there are some questions that you should ask. Some of the most important are discussed
below.
What
are my options?
Loan modification is just one of several ways that you may be able to avoid foreclosure. In addition to
modifying the terms of your mortgage contract, bankruptcy and foreclosure
defense may be able to help. Some basic information about each is discussed
below:
- Negotiations –
A mortgage modification is one out of several negotiations that a
defendant can seek in a foreclosure matter. Other agreements sought are:
short sales, forbearance agreements, deed in lieu agreements, short payoff
agreements, agreements to allow a voluntary sale etc. However, by far the
most sought agreement with the lender is a modification since it would
usually allow the borrower to remain at the property and to cure and
reorganize the mortgage loan.
·
Bankruptcy – Both Chapter 7 and Chapter 13
bankruptcy can halt foreclosure proceedings due to the
protections offered by the automatic stay, which is an injunction that
immediately stops any collection activity the moment a bankruptcy is filed.
Furthermore, Chapter 13 often allows homeowners to restructure their loan in
such a way as to stay in their homes as long as long as they keep up with their
court-approved payment plan.
·
Foreclosure defense – There are often several ways in which
a homeowner can directly defend against a foreclosure action, including drawing
attention to procedural defects in the way the case was brought, inability to
establish ownership of the mortgage, or fraudulent mortgage lending practices.
How
long will the process take?
Foreclosure is a very time-sensitive
issue. In many cases, a lender files a foreclosure action as soon as they are
legally able to do so. For this reason, it is important to keep your attorney
fully apprised of your situation and determine how much time you may have to
pursue a loan modification.
What
are the costs associated with loan modification?
Some attorneys operate on a flat-fee
basis for loan modification services while others bill their clients hourly.
Still others may base their attorney’s fees on obtaining a certain result for
their clients. You should determine which way your potential attorney charges
legal fees and obtain an estimate for the total cost of loan modification
representation.
Contact a
Long Island foreclosure lawyer today to discuss your situation
Individuals who are facing foreclosure should talk to an experienced
lawyer as soon as possible. In many instances, the help of an attorney can help
people keep their homes and modify their loan in a way that makes keeping up
with their payments significantly easier. To schedule a free consultation with
Long Island foreclosure attorney Ronald D. Weiss, call our office today at
631-296-0912 or send us an email through our online contact form.
References:
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