The housing market of the United States is still in a state of recovery and many American homeowners are facing the threat of foreclosure on their homes. Foreclosures can happen as a result of several factors including financial hardship or loss of employment which make it very difficult for some homeowners to prevent. For homeowners facing foreclosure, there are attorneys who specialize in foreclosure defense to help them prevent losing their homes or defaulting on their mortgage. Foreclosure defense attorneys explore alternative legal options to help homeowners refinance or perform a short sale of their homes to relieve them of their mortgages.
When homeowners face the possibility of foreclosure, it is beneficial for them to have legal representation when dealing with the lenders. One way an attorney can benefit these homeowners is by modifying or restructuring the terms of the mortgage. Loan modifications are one such strategy to restructuring the loan in which an attorney negotiates with the lender for reduced interest rates or an extension of the term for lower payments. Another strategy used by attorneys to avoid foreclosure is repayment plans. Attorneys negotiate repayment plans with the lender in order to eliminate arrearages or refinance them in a new mortgage. The last strategy generally used by attorneys is to seek forbearance, or suspension of payments. When seeking forbearance, attorneys negotiate with the lender to determine the time period for suspended payments to give homeowners an opportunity to reestablish themselves financially before continuing mortgage payments. With each of these strategies, the goal of the attorney is to relieve some of the financial burden of the mortgage so that homeowners can stay in their homes.
While it is generally the preferred option to retain a home in the face of foreclosure, sometimes the best option is to do a short sail of the home to be absolved of the mortgage. In the event of a short sale, the homeowner gives up ownership of the home and the lender accepts a payment for less than the owed amount as a full repayment of the mortgage. Attorneys help homeowners administer short sales by working with the real estate agent to list and sell the property and by negotiating with the lender to accept a reduced payment as full repayment. The lender also pays the attorney’s legal fees as part of the transaction. Short sales cause a slight dip in the homeowner’s credit rating which is much less severe than the credit rating hit caused by a foreclosure.
If you are facing a foreclosure on your home and feel like you are out of options, talk to a defense attorney to learn about the various legal alternatives. Experienced attorneys can help alleviate the burden of a mortgage to avoid foreclosure by renegotiating the terms of the mortgage and in some cases they can help people retain their homes as well. Homeowners who are facing possible foreclosure should hire an experienced attorney who can help them explore their available options to avoid it. These attorneys strive to relieve their clients of difficult mortgages and keep them from losing their homes.