Foreclosure is the catchall phrase used for the legal process of seizing real estate when the owner defaults (stops paying) the mortgage payments. There are several types of foreclosure actions. The foreclosure process varies depending on the type of foreclosure and state law. Therefore, it is worth consulting a foreclosure defense attorney to discuss potential ways to save your home.
However, how do you know which foreclosure defense attorney to hire? Do you hire the first lawyer that appears on an internet search, the largest defense firm in your town, or a boutique law firm? Choosing a foreclosure defense attorney can be confusing. Our guide to hiring a foreclosure defense lawyer can help. Keep reading to learn more.
When you do not pay your mortgage payments, your mortgage lender may call you several times requesting payment. The lender may also send you multiple letters asking for payment. Typically, the calls and the letters become increasingly hostile until they end.
At that point, you can assume the mortgage company has turned the account over to a foreclosure lawyer. You will likely hear from the foreclosure lawyer for the mortgage lender next. You are given a specific number of days to catch up on the mortgage payments and all amounts past due, or the lender intends to proceed with a foreclosure action.
If you fail to respond to the foreclosure complaint, do not have a valid defense, or cannot catch up with past-due mortgage payments, the lender obtains a default judgment. The court orders your home to be sold at a foreclosure sale.
If you do not consult a foreclosure defense attorney, you may not understand your options regarding a mortgage foreclosure. At the very least, hiring an attorney might help slow down the foreclosure process, giving you time to find a new place for your family to live.
Ask your friends and family members for references. Personal references give you an excellent perspective because they worked with the lawyer and have firsthand knowledge of their legal services. You can search for foreclosure lawyers near you through the state bar association. You can also read reviews and references online.
Qualities to look for when hiring a foreclosure defense attorney include:
Once you narrow your list of possible lawyers to two or three, schedule a free consultation with each lawyer to discuss your case. Meeting face-to-face with an attorney to discuss your case gives you the best idea of whether you want to hire a lawyer.
A lender can begin foreclosure proceedings after your first late payment. However, most lenders wait three to six months before starting a foreclosure. An attorney understands the foreclosure process in your area and explains what to expect. Therefore, talking with a foreclosure defense lawyer as soon as possible when you realize you cannot catch up on mortgage payments is wise.
Whether you think you have a defense to a foreclosure action or not, having sound legal advice is your best way to decide what to do next. A foreclosure defendant gives you an honest evaluation of your options to save your home.
However, contact Ascend if a foreclosure defense attorney tells you that you cannot save your home from foreclosure. There could be another way to save your home from foreclosure.
If you cannot catch up on your mortgage payments and do not have a valid legal defense to the foreclosure complaint, you might consider filing for bankruptcy relief. The automatic stay goes into effect immediately when you file a Chapter 7 or Chapter 13 bankruptcy case. In addition, the automatic stay prohibits the lender from continuing with a foreclosure case without court approval.
In a Chapter 13 case, you catch up on past-due mortgage payments (mortgage arrearage) as part of your Chapter 13 repayment plan. You can spread out the past-due mortgage payments over a three to five-year plan. Therefore, you could take up to 60 months to catch up on past-due payments. The Chapter 13 case makes keeping your home possible and affordable. You are required to resume making your mortgage payments and keep the payments current while in Chapter 13.
Furthermore, if you owe a second mortgage, you might be able to value the second mortgage at “zero” if you owe more money on your first mortgage than your home is worth. The second mortgage lender would only receive a portion of their debt as an unsecured creditor.
Additionally, a Chapter 13 bankruptcy case deals with your other debts. Many individuals get rid of unsecured debts for pennies on the dollar. When you complete your Chapter 13 plan, your mortgage payments are caught up, and you could be debt-free if all other debts are dischargeable.
Take the first step by using our free Chapter 13 bankruptcy calculator to see how much your Chapter 13 payments might be if you file for relief. You can also use our other free calculators to compare debt relief options.
Are you behind on your mortgage payments? If so, call Ascend. Our team of professionals discusses your situation, including ways to eliminate debt problems. If you need help finding a bankruptcy lawyer near you, we can help you with that too.
You do not need to face this situation alone. We understand how frightening, stressful, and overwhelming debt problems can be for individuals and their families. Call or text us now at (833) 272-3631 or contact us online for a free case evaluation.
