Facing a foreclosure is a scary experience for any homeowner. When this happens, many homeowners question exactly what they can do, as it is common to believe that all is lost. This is untrue, as there are plenty of options for dealing with a foreclosure, depending on your situation at the time.
Working with a foreclosure defense lawyer can give you confidence that you are not alone. The right lawyer can help you navigate the complexities of the foreclosure world, while keeping your best interests in mind.
What Solutions Are Available to Me?
Deed in lieu of foreclosure: A very popular choice, this is when the homeowner is able to return the deed to the property to the lender. In doing so, the homeowner leaves the home and foreclosure is avoided, which is why it is called the “friendly foreclosure.”
Bankruptcy: In certain situations, filing for bankruptcy can be a way to postpone or avoid foreclosure all together. You have two options, filing for Chapter 7 or Chapter 13.
- Chapter 7 is an overall shorter process and is when you can temporary put the foreclosure on hold for three to four months as a way to pay back your loan.
- Chapter 13 allows for the homeowner to pay back their outstanding loan on top of staying current with their mortgage over a period of three to five years. At the end of this time, if the payments are up to date, foreclosure will be avoided.
Refinance: If the homeowner still has good credit, there is a chance the lender will allow them to refinance their mortgage under different terms.
Short sale: This is an option for homeowners who owe more on their property than it is currently worth. A real estate agent will sell the home and then the funds from the sale will go to offset the mortgage. However, the homeowner must have a severe financial hardship such as a divorce, excessive debt, or job loss to qualify for this option.
Reinstatement: Often considered the simple solution to foreclosure, reinstatement is when the homeowner pays what is owned in the mortgage all at once in a lump sum.
Strategic default: In some situations, it can be in your best interest to not pay the outstanding amount on your mortgage and you can walk away from it all together. This option is hard to obtain, and requires an experienced lawyer to help lead the way.
Speaking to an experienced lawyer is pivotal when it comes to foreclosure solutions because they will give you their best judgement on what option is best for you. No two foreclosures are the same, so the right foreclosure lawyer will bring a personalized approach to your case and help to protect your rights from start to finish.
If you have any questions about the foreclosure process, contact a foreclosure lawyer for a consultation as soon as possible.