Foreclosure is a homeowner’s worst nightmare. Until they pay off their mortgage, the home that they purchased is vulnerable. It serves as the collateral property for the loan. If they do not make all of their payments on time, the lender may eventually try to lay claim to the property through foreclosure.
Not only does foreclosure deprive a property owner of their interest in a home, but it also creates a major blemish on their credit record. It can be very difficult for those with a recent foreclosure to qualify for another mortgage. Those worrying about the possibility of foreclosure may need help protecting themselves and their finances. In many cases, they may turn to a lawyer for assistance.
What are some of the ways an attorney can help those worried about the potential future loss of a property purchased with a mortgage?
Validating the risk of foreclosure
Many people become overly anxious during times of financial hardship. They may catastrophize their circumstances, assuming the worst. However, people have to miss four mortgage payments or be 120 days behind on a payment before a foreclosure becomes a realistic worry. Those who can correct their financial challenges within a few weeks or months can typically avoid foreclosure proceedings.
Evaluating possible solutions
Homeowners determine the best solution available to prevent foreclosure. For some people, making major financial moves could be beneficial. For many others, renegotiating a loan as a way of avoiding foreclosure could also be possible. In some cases, there may even be a technical defense against foreclosure because the lender failed to follow specific legal rules early in the foreclosure process. An attorney can look over the paperwork for the mortgage and all communication with the lender to help the homeowner plan the best path forward.
Managing pleasure communication
Homeowners sometimes worsen their circumstances by becoming overly emotional while talking with mortgage company representatives. Other times, they agree to terms that do not actually help improve their circumstances. An attorney representing a property owner can take over all direct communication with the mortgage lender. Doing so can help maintain a positive dynamic and can prevent scenarios in which homeowners get taken advantage of by lenders.
Homeowners may need help protecting the investments they have made in their primary residences by modifying a mortgage to avoid foreclosure. Legal assistance is often crucial for those who want to preserve their homeownership despite facing temporary financial challenges.
