Home Foreclosure Help
If you are over 90 days past due on your mortgage, you need home foreclosure help.. At this point, your main priority is to prevent further harm to your finances. Here are some steps you should consider if your foreclosure seems imminent.
Consult an attorney. If the foreclosure process is already on its way (which it probably is at this point) you need to speak with a consumer law attorney. Not only will they provide advice on what steps you need to take, they can also negotiate lower payments with your lender, and possibly find flaws in your loan that will stall or stop your foreclosure.
Not all lawyers are blood sucking parasites. Really. If you face foreclosure on your mortgage and don't know where to turn, contact a consumer law attorney. Not only will they walk you through the foreclosure process, they should provide advice on your options. Even if you understand the process, a consumer law attorney can lend their experience on the subject.
For example, a lawyer could point out mistakes in your paperwork that could halt the foreclosure. How many times have you heard of a lawyer get someone off because of a technicality? It happens all the time! A consumer law attorney may discover your lender has been charging too much interest on the loan, failed to disclose certain terms on your contract, etc.
Their experience can also work well at the negotiating table. Often times, lenders are more likely to offer concessions when you work with a lawyer or credit counseling agency; they realize you are more serious about paying your debts.
If the foreclosure process has already begun, a lawyer can review the related documents, and discover a disclosure that was not made. Even the smallest glitch can stop or at least delay foreclosure, which buys you time.
Sell your house. Obviously not the ideal solution for home foreclosure help, but selling your home is far better than having it foreclosed on. If you've owned your property for several years and have substantial equity in it, selling your home should wipe out all your debt and provide a clean slate for your future. At this point you will want to sell quickly, so contact a real estate agent to help market your property and price it to sell ASAP.
Home Foreclosure Help - Additional Ideas
Talk to the lender about a short sale. If your lender is concerned about recouping their investment, ask if you can sell the house for less than what you owe. Some lenders will approve this if they think you aren't able to pay anything back at all. Before you do this, ask them to waive the remainder of the loan, which allows you to move on with your life debt free. If they don't waive the deficiency, you will be forced to pay the amount. In addition, the IRS considers this amount as taxable income, which could lead to a very unexpected tax bill in April. To avoid this, consult a Certified Public Accountant (CPA) and see if you qualify as insolvent; if you are, you can avoid this tax bill.
Offer the deed back to the lender. If you don't have a lot of equity in your home, consider offering the deed back to prevent foreclosure. Most lenders require an appraisal of the home to determine the value (you'll have to pay for this) before agreeing to this. The negative is that this will show up on your credit history, affecting your credit score for years to come.
Consult a bankruptcy attorney. If all else fails, bankruptcy may be your best bet. There are two types of bankruptcy: Chapter 13, which provides 3-5 years for you to pay off your debts, and Chapter 7, which wipes out most (if not all) of your debts, including mortgage payments, closing costs and other related fees. Keep in mind there is a difference between a consumer law attorney and a bankruptcy attorney. If the consumer lawyer determines that declaring bankruptcy is in your best interest, they should recommend a bankruptcy lawyer to help with the next step. You can also find a list of attorneys who provide pro bono services (aka "free") for bankruptcy filings by contacting the local bar association. |
