Foreclosure Defense for Homeowners

What is about to surface could be named as an alarming statistics, or reality disclosure and a warning for homeowners. This is RealtyTrac’s annual U.S. Foreclosure Market Report for 2008 indicating that 2,330,483 properties nationwide entered some stage of foreclosure.  This would amount to an 81 percent increase from 2007 and 225 percent higher than the total number in 2006. The statistics for 2009 are looking even steeper, and there are no signs of relief in the near future.  With these unfortunate statistics, homeowners need to know their legal rights and options and it is high time for them to be aware of the foreclosure defense practices that they can put into action.

Homeowners off course would want to save their home at any cost, and some do it to shed of the burden of unreasonable mortgage payments and preserving credit. Solutions are there, but only after proper analysis of individual financial situations. Attorneys can design the best suitable program for you to go for a once and for all settlement.

One solution that can be given a head start for you is a mutually beneficial payment plan. The lender and the borrower can enter into a mutually beneficial payment plan that will in turn help if a person is struggling to make home payments and may be facing foreclosure, or to revise the terms of original loan agreement in order to make manageable mortgage payments to the lender. This is known as loan modification and can be done whether or not a person is behind in the loan payments, based on his or her financial situation, current hardships, and ability to make smaller payments.

Determine whether or not you are the victim of predatory lending by getting forensic loan audit done on original loan documents. If you are a victim then a lawsuit can be files against the lender and to put a stop to the foreclosure process for the duration of the suit.

Another grave thing to understand here is that the homeowners get confused in the moments of distress of whether to hire a foreclosure attorney or a loan modification firm to assist them in saving their home. Under many state and federal laws, loan modification firms cannot advise you of your legal rights or represent you in court to fight foreclosure. Attorneys can therefore help you in relieving you of your ongoing anxiety of facing foreclosure. Attorneys are adept at navigating their way through what might seem impossible for homeowners falling at the risk of a foreclosure, all the while taking the immense burden off your shoulders.  They look at the various aspects of your loan agreement and give you the best possible leverage and position when negotiating the terms of your loan with your lender. But the question is getting the right attorney and making it sure of their being licensed which makes them entitled to represent you in court or provide you with the right loan modification plan that can help you from coming out of the mess with the risk of facing the unfortunate foreclosure. Attorneys can therefore, litigate your foreclosure case, and help keep you in your home.

Bankruptcy Can Avoid Foreclosure

In the course to avoid foreclosures, Bankruptcy can be the most reliable option today especially to many homeowners who face foreclosure. Filing bankruptcy will put the entire foreclosure process on hold, which is very important for homeowners in the present scenario when economy is facing recession and they are getting affected by it. But there are many questions to be answered in this regard without which it is risk to declare bankruptcy. The questions that haunt our mind are “How long the foreclosure process is stopped for?” and “What is the particular chapter of bankruptcy that a debtor requires to file?”

A Chapter 7 bankruptcy, also referred to as “liquidation,” completely eliminates all of a debtor’s legal liability to pay unsecured debt. If a Chapter 7 debtor is facing foreclosure, the bankruptcy will temporarily halt the foreclosure process until one of the following occurs: the bankruptcy process is completed, or the foreclosing lender gets the judge to lift the automatic stay.  Unfortunately, if a borrower is far behind in their payments, and they do not have enough income to make the payments if the debt is reaffirmed, this relief can be granted immediately.

A Chapter 13, on the other hand, can stop a foreclosure proceeding permanently.  A Chapter 13 bankruptcy consolidates debt and reorganizes it into an affordable monthly payment plan approved by the court. In comparison to Chapter 7 bankruptcy, Chapter 13 does not completely eliminate a debtor’s unsecured debt and requires a debtor to repay a portion of or all of the debt. However, the debtor is able to pay off their debt in affordable monthly payments over a period of three to five years, as determined by the court depending on monthly income, expenses, and assets.

Chapter 13 bankruptcy, also referred to as “reorganization”, consolidates debt and reorganizes it into an affordable monthly payment plan approved by the court. But there are quite a few things to remember on the part of the debtor. One very important thing to remember about Chapter 13 bankruptcy is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. It is a temporary fix and if you have no way of paying your mortgage or it will be very difficult, then maybe this is not an option for you to choose. However, it should be used as a last resort due to its limiting protections for homeowners with a first mortgage and the long lasting consequences to your credit.

Bankruptcy may be the best solution for a lot of extreme financial hardships but bankruptcy may stop the foreclosure any time prior to the sale, and allow you to repay your mortgage arrears through your Chapter 13 bankruptcy. To conclude off it could be well stated that Bankrupty is a very serious step, with enduring consequences, but can provide debtors relief from the foreclosure process.

Loan Modification, Bankruptcy Avoid Foreclosures & Save your Home

The economy is facing recession and with it comes the struggle to keep up with the monthly mortgage bills. In such a case the strategy and ability to protect your home from foreclosure depends on where you are on the foreclosure timeline which one should be aware of to avoid foreclosure. The foreclosure timeline is-

When a borrower has missed several months of mortgage payments (generally about three months) the lender files a Notice of Default with the county recorder. The NOD identifies the default amount and the date by which the borrower must pay off the default.

When a Notice of Trustee Sale is sent after 90 days has elapsed after the NOD is filed when the lender has the right to file a Notice of Trustee Sale. It is done 20 days prior to the sale. It contains the date, time and location of the sale and posted on the property and in public location as well.

When Trustee Sale Auction held at the place and time as mentioned in the Notice of Trustee Sale. The successful bidder receives a trustee’s deed to the property once the sale is completed.

Now when you are aware of the time line, it is important to ascertain and come to a conclusion on saving your dream home from an unfortunate foreclosure. The most obvious way to save your home is to work out a mutually beneficial payment plan with your lender, or to revise the terms of your original loan agreement in order to make manageable mortgage payments to your lender. Lenders can help you out in the loan modification process but it can be frustrating for the borrower due to pressure of work on the lender. In such a case online law firms looks at all of the aspects of your loan agreement and gives you the best possible leverage when negotiating the terms of your loan with your lender.

Borrowers can also feel protected from engaging in unfair lending practices through a number of federal laws. Borrowers can be the victim of predatory lending practices without even knowing a bit about it. In such a scenario, a forensic loan audit is done on the original loan documents and if you have been a victim of predatory lending, you may have the right to file a lawsuit against your lender and to put a stop to the foreclosure process for the duration of the suit.

The next best option is to declare Bankruptcy which puts an immediate stop on the foreclosure process, hence providing with an opportunity to start fresh on your finances. It is the solution that you can resort to when you are the facing the difficulty in paying your monthly mortgage bills and getting into additional debts. The solutions are, therefore attainable to enter into a loan modification process and working out on a mutually beneficial payment plan, protection from predatory lending practices on the part of the borrower and declaring bankruptcy in order to avoid foreclosures. Online law firms have expert attorneys who specialize in loan modifications and foreclosure prevention to help out in moments of recovery.