Options For A Mortgage Foreclosure Defense From a Real Estate Lawyer
During the foreclosure crisis over 6 million people in America are estimated to have lost their homes to foreclosure. A foreclosure occurs when generally due to non-payment a lender takes back a home from the home owner. This can be an extremely overwhelming feeling, as so much can be put into ones’ home, both emotionally and physically. When faced with possibly losing your home, it can be hard to know what to do, or where to turn. At Benson, Mucci, & Weiss P.L., LLC, we are dedicated to helping you, the home owner, make the best decision possible during these uncertain times.
When dealing with a foreclosure, there are a few strategies that can be looked at when deciding what option is best for you. One of the first options is a loan modification, or permanently restructuring the mortgage terms to make the payment more affordable. This may be accomplished by reducing the interest rate or extending the time for repayment. To be eligible for a loan modification, a borrower must show proof of the inability to financially make the required payments. The borrower will also undergo a trial period to prove the ability to make those payments under the modification. Documentation must be presented for an evaluation, such as proof of income, tax returns, financial statements, and a hardship statement.
Another option is a Short Sale. Short Sales occur when the owner decides to sell the home where the sale price is less than the mortgage and closing costs that are owed on the home. Again, before the lender will make an agreement on a discounted payoff, documents proving financial hardship must be presented.
Other less common but potentially viable options include a Deed in Lieu of Foreclosure or a HARP Refinance. A Deed in Lieu of Foreclosure is an option for those who would simply like to turn over their home to the bank to completely avoid the foreclosure process. A HARP Refinance, if available, will help to lower monthly payments and interest rates for those owners who owe more on their home than it is currently worth.
The distress this can cause any home owner is immense, and at Benson, Mucci, & Weiss P.L. we have the compassion and experience to help provide the guidance as to what the best option would be for your particular situation. We understand these things happen, and we also understand having someone on your side with skillful expertise and devotion can help create the most efficient and cost-effective outcome to assist you and your family in getting out of a bad situation.