If you have missed mortgage payments and received notice of foreclosure, you might think it’s inevitable that you will lose your home. But this isn’t time to give up, in fact it’s quite the opposite.
The foreclosure experts at Cabanillas & Associates have worked with many people in your position and have a wide range of strategies to allow you to stay in your home. You need to do two things – firstly, contact an experienced attorney right away to set up a consultation and secondly, inform yourself of your rights.
Learn Your Mortgage Rights
How exactly do you learn your rights? By reading through your mortgage documents. That’s where your lender will have set out the terms and conditions, the monthly late charge, and any other fees imposed for late payments. The paperwork is where you will find out whether you can reinstate the loan by catching up on the late payments.
Highlight any information you don’t understand so you can bring this up with your attorney. Collect all the mortgage paperwork and put it into a folder to bring to your consultation.
Next, find your financial information (bank statements, loan statements, and pay slips) and add it to the folder. It’s extremely important that you remember to bring this paperwork, as your attorney needs it to start working your case.
What Happens At The Consultation?
If you haven’t had much experience with the legal system, it can be daunting to enter into this world. There are terms you aren’t familiar with, you might be reluctant to discuss your financial affairs with a stranger, and the stakes are very high.
Be assured that at Cabanillas & Associates, we have talked with and helped many, many people in your situation. We aren’t shocked and we certainly don’t judge. Our mission is to help. The more honest and open you can be with us, the better chance we have of halting the foreclosure process.
What Action Can Your Attorney Take?
Your attorney will talk you through the options that are open to you and advise you of the best course of action. You are likely to review these strategies with your legal representative:
Refinancing Agreement: If you haven’t yet fallen behind with mortgage payments but know that this will happen, this could be the best course of action. Your attorney will arrange a replacement loan which will reduce your monthly payments.
Repayment Plan: If your financial difficulties are only temporary, you could be eligible for a forbearance agreement. This is where your lender reduces or suspends mortgage payments for a set period. This is a temporary arrangement.
Loan Modification: Your attorney will organize a permanent reduction to your mortgage. The monthly payments might be reduced by extending the length of the loan, or the interest rate may be permanently lowered.
Challenge the Foreclosure: Your attorney might spot irregularities in your mortgage paperwork, or your lender may be refusing to negotiate. In these cases, it could be the best option to contest the foreclosure in court.
File Bankruptcy: If you have no way to catch up on mortgage payments, a Chapter 13 bankruptcy allows you more time to pay off your debts while keeping your home. Your attorney will help you put together a repayment plan with your lender. This option can reduce unsecured debt and free up income for your mortgage. Your attorney will advise you whether a Chapter 13 filing will also eliminate other mortgages you might have.
Short Sale: If it isn’t possible to save your home, a short sale allows you to sell the property and make a fresh start. Your lender will agree to accept the sale price of the house and forgive the remaining mortgage balance. Although they will lose money, they may be willing to accept this proposal in order to quickly release equity. Importantly, a short sale allows you to avoid the negative effect of foreclosure on your credit rating.
Don’t Give Up!
We have worked with many clients who feel that every door is closed to them, and who have almost given up hope of saving their home. By working with a foreclosure expert, a world of experience is opened up to you and your family. The best action you can take is to seek legal advice as soon as possible. The sooner you do this, the more options will be open to you.
If you need legal advice, call us today on 1-800-LA-FIRMA or book your free consultation here. We have nine offices located conveniently across the Tri-State area and we look forward to helping you.