Home Finance Sense: Avoiding Foreclosure

Many homeowners lose their homes because of failure to completely repay their mortgages. For most of these people, it is not their own making that they end up facing a foreclosure. A significant percentage has been served with foreclosures while others are threatened to fall in the same boat. In this article, Samuel Schwartz, who works at a top bankruptcy lawyer Las Vegas firm, shares insight on why it’s important to work with a foreclosure attorney.

avoiding a foreclosureIf you are faced with a hardship and you cannot finish mortgage repayment, a lawyer can help prevent your home from being sold.

If you can prove that you are faced with financial hardship (you lost a family member, you are ill, lost wages, you are bankrupt or the rates increased due to an adjustment) you should file for loan modification or file for bankruptcy with Chapter 7 or 13. A loan modification will permanently alter the terms of your initial agreement, Chapter 7 temporarily stops a foreclosure while Chapter 13 stops foreclosure and allow you clear the mortgage arrears.

Whichever way you choose to go about it, you need a lawyer. When you receive a foreclosure notice, you must immediately contact a foreclosure lawyer. There are several measures you can use to avoid a foreclosure, all of which need a defense attorney.

How to Avoid Foreclosure

The following are ways to avoid foreclosure:

  1. Loan modification
  2. Short sales
  3. Refinance
  4. Deed In Lieu
  5. Filing for bankruptcy
  6. Contesting foreclosure
  7. Reverse mortgage

A foreclosure defense lawyer can help you execute any of the above options to prevent losing your house in Florida, New Jersey, Pennsylvania and New York.

Get Foreclosure Help From a Lawyer

Here are the ways in which a lawyer can help you stop foreclosure:

  • A foreclosure attorney will guide you through the bankruptcy process regardless of whether you have filed under Chapter 13 or Chapter 7. The court places an “automatic stay” as soon as you file bankruptcy which prevents creditors from any attempts to collect money from you. A lawyer can help stop the foreclosure for three months if you have filed bankruptcy under Chapter 7 and for up to five years for filing under chapter 13.
  • The attorney can also review your financial situation to come up with a repayment plan that suits your situation.
  • You need guidance of a foreclosure lawyer in order to file a petition with bankruptcy court. The lawyer will advice you on which paper work to submit which may include: financial records, proof of income, list of liabilities, record of your assets, etc.
  • A reputable lawyer will discuss with you all the available options to stop a foreclosure and help you select the best option. This will only be possible if you are honest enough to tell the lawyer the truth about your mortgage default. You must disclose your financial information and let the attorney know the real reasons why you are unable to make payments.

If you have been served with a foreclosure, you definitely know that no mortgage payments are accepted by the bank after the foreclosure proceedings have began. The only thing you are left with and the most important thing is to fight the foreclosure.

Written by GiovannaP