how a lawyer can slow foreclosure

How Can a Lawyer Stop a Foreclosure?

• Reviewing Your Loan Documents. A lawyer can review your loan and address any unfair or predatory lending practices. For...
• Advocating on Your Behalf. A real estate lawyer is an expert on state foreclosure laws. The lawyer can explain your...
• Filing a Legal Response. If you are in a state that requires judicial foreclosures, the lender...

Full Answer

Do I need a lawyer to stop a foreclosure?

If a homeowner decides to get a lawyer to give them legal advice, it’ll be a foreclosure defense attorney, not a plaintiff’s attorney. It might seem like hiring an attorney only makes sense when the homeowner is trying to stop the foreclosure. But that’s not always true. Foreclosure lawyers can do more than just help fight a foreclosure.

How much does a foreclosure lawyer cost?

The price of a foreclosure lawyer will depend on many variables, including: Attorneys bill clients using different fee structures, including an hourly, flat fee, or monthly fee arrangement. With hourly billing, the attorney charges a set amount of money for each hour worked on a case.

Can I prolong my foreclosure?

Also, keep in mind you have to serve your responses on the other parties in the case. If you decide to employ this strategy for prolonging a foreclosure, you should seriously consider consulting with a lawyer to ensure you don't miss any deadlines. Nonjudicial foreclosures.

What are the benefits of hiring a foreclosure attorney?

One major benefit of hiring a foreclosure lawyer is that you don’t know what you don’t know. A foreclosure lawyer has the experience to identify things to help your case, like a legal defense you aren’t aware of or a legal misstep by your mortgage company.

What action can temporarily stop a foreclosure?

You can postpone the auction with the help of an attorney, cancel the sale by initiating a deed in lieu of foreclosure or arranging a short sale, or sell the home to the bank.

What is the best way to prevent foreclosure?

OPTIONS: Keeping your home is a priority and educating yourself to prevent foreclosure is critical to keeping your home. Some prevention foreclosure options include the Home Affordability Refinance Program, forbearance, a short sale, deed-in-lieu, and the Making Home Affordable Modification.

What are some legal ways to avoid a foreclosure?

6 Ways To Stop A ForeclosureWork It Out With Your Lender. ... Request A Forbearance. ... Apply For A Loan Modification. ... Consult A HUD-Approved Counseling Agency. ... Conduct A Short Sale. ... Sign A Deed In Lieu Of Foreclosure.

What is the most expedient method of foreclosure?

foreclosure by power of saleWhere it is available, foreclosure by power of sale is generally a more expedient way of foreclosing on a property than foreclosure by judicial sale. The majority of states allow this method of foreclosure.

What remedies might a borrower seek to prevent foreclosure?

Ways to Avoid a ForeclosureReach out to the lender or loan servicer about a remedy as soon as possible. You may be able to reach an agreement on a payment plan, a temporary forbearance or a modification of the loan terms. ... Sell your home. ... File for bankruptcy. ... Agree to a deed in lieu of foreclosure.

How can HUD help me avoid foreclosure?

Contact a HUD-approved housing counseling agency to get free, expert assistance on avoiding foreclosure....Foreclosure protectionsThe date your forbearance program will end.Your options for repaying your missed payments and avoiding foreclosure.Information on how to contact free housing counseling services.

Can I refinance if I'm in foreclosure?

Can I Refinance While In Foreclosure? It's not possible to refinance while you're in foreclosure. If you were to refinance, the best option is to be current on your payments and refinance into a more affordable payment before you're in serious financial trouble.

Which is worse foreclosure or Chapter 13?

A foreclosure or short sale, as well as a deed in lieu of foreclosure, are all pretty similar when it comes to impacting your credit. They're all bad. But bankruptcy is worse. Going through a foreclosure tends to lower your scores by at least 100 points or so.

Can I negotiate a mortgage reinstatement?

Looking for Mortgage Analysis Services Homeowners are also allowed to negotiate the reinstatement of their mortgages loans with the lenders. Negotiating a reinstatement of a defaulted mortgage with the lender is a bit more involved than simply paying all missed payments and late fees, though.

Which process temporarily stalls foreclosure?

You can stop a foreclosure in its tracks, at least temporarily, by filing for bankruptcy. Chapter 7 bankruptcy. Filing for Chapter 7 bankruptcy will stall a foreclosure, but only temporarily.

How long after default does the foreclosure process begin?

about 3-6 monthsIn general, mortgage companies start foreclosure processes about 3-6 months after the first missed mortgage payment. Late fees are charged after 10-15 days, however, most mortgage companies recognize that homeowners may be facing short-term financial hardships.

What is the first item to be paid out of foreclosure funds?

the first mortgage. any properly recorded junior liens. special assessment taxes, and general taxes. The order of payment in a foreclosure is; the cost of the sale (advertising, attorney fees, trustee fees, etc.), any special assessment taxes and general taxes, the first mortgage, whatever is recorded next.

Advocating on Your Behalf

A real estate lawyer is an expert on state foreclosure laws. The lawyer can explain your rights, the process, and any available prevention methods. Your lawyer can also negotiate directly with the bank on your behalf to reach a solution outside of court. Possible options include a loan modification, short sale, or deed in lieu of foreclosure.

Filing a Legal Response

If you are in a state that requires judicial foreclosures, the lender must file a lawsuit against you to foreclose. Once you are served with papers, you have a certain number of days to respond. The legal terminology is often overwhelming. A lawyer can explain the paperwork and file your answer to the complaint with an appropriate defense.

Filing Bankruptcy

Bankruptcy can temporarily stop a foreclosure. It is always best to consult a lawyer if you are considering bankruptcy. Chapter 7 bankruptcy is the form of bankruptcy used to wipe the slate clean. Filing automatically stops the foreclosure clock. You can't keep the home permanently, but your liability is released.

A Foreclosure Defense Lawyer

If a borrower defaults on a mortgage, then the lender may decide to foreclose on the property since it secures the mortgage loan. Foreclosures can be either judicial or nonjudicial and often arise when a homeowner is unable to make their mortgage payments

Foreclosure Attorney Costs & Fees

Now that you know how a lawyer can help you with your foreclosure, it’s time to figure out how much that legal assistance will cost. For most homeowners, the cost of hiring an attorney will be the single most important factor in deciding whether or not to do so and who to hire.

Let's Summarize..

You don’t need to have an attorney handle your foreclosure, but hiring one can be a big help. This is especially true if you have legal defenses, are an active-duty servicemember, or plan on fighting the lender to stop your foreclosure. By hiring a foreclosure attorney, you have someone to spot legal issues you may not know about.

The Two Types of Foreclosures

Not all foreclosures are created equal. It is important to understand the mechanism by which your lender is foreclosing on your home. Generally, the terms of your mortgage will determine whether the foreclosure will be a judicial or non-judicial foreclosure. While the end result is the same, the means to get there varies.

Common Tactics Used to Delay Foreclosure Proceedings

When the bank notice comes, it seems that everyone you talk to will have delaying foreclosure tips to offer. Some can be helpful, and others not. The truth is that there are a number of legal and effective ways to delay the foreclosure process. Delaying foreclosure should not be viewed as a bad thing.

Delaying Foreclosure Through Bankruptcy

If filing for bankruptcy is applicable to your situation, there are generally two types of bankruptcy that you can file. These are Chapter 7 and Chapter 13 bankruptcy. Generally, you and your attorney will discuss which option is best for you.

Get Help Delaying Your Foreclosure Sale

Foreclose is complicated. Generally, it is a once-in-a-lifetime event. This means that most people will need help navigating the process. If you are wondering how to postpone your foreclosure, an experienced and knowledgeable foreclosure attorney will help you navigate the complex laws and regulations and fight for your rights along the way.

Reinstating the Loan

State law and most mortgage contracts allow the borrower to stop a foreclosure by reinstating the loan. To reinstate, you’ll have to pay all of the missed payments, plus foreclosure fees and costs, in one lump sum.

Bring the Loan Current With a Repayment Plan or Loan Modification

If you had a temporary financial hardship, like losing your job, but are now back on your feet, you might be able to stop the foreclosure by agreeing to a repayment plan. In a repayment plan, you pay part of the overdue amount along with your regular mortgage payment over a specific amount of time.

Redeeming the Property

All states allow a borrower to redeem the property by paying off the entire loan balance to stop a foreclosure sale from happening. (Some states also have a law that gives foreclosed homeowners the right to redeem the property after a foreclosure sale .)

Selling the Home or Giving It to the Lender

While you won't be able to keep your home with either of these options, you could avoid a foreclosure by selling the property or deeding it to the lender.

Help you modify your loan

A loan modification is an agreement between the borrower and the loaner that changes the original terms of the loan. Your lawyer will assist you in the loan modification method.

Ensure that the loaner follows the rules

Lenders aren’t always helpful when it comes to processing loan modification applications.

Defenses a lawyer will raise in court to avoid foreclosure

A lawyer may be able to raise certain defenses or illustrate errors that the bank made during the process.

Help You File for Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy may be a potential solution if your investor won’t modify your loan, or if your pockets aren’t deep enough to fund a costly legal battle.

Assist you during the loan modification

Loan modification can act as one of the biggest reliefs during a foreclosure as it helps in adjusting the different terms and conditions of the loan so that the payment can fit in your limited budget like a glove.

Attend the Settlement conference on your behalf

Settlement conferences are compulsory in various states like New York, and this is where Queen’s foreclosure lawyers can help you. In the settlement conference, both the homeowner and the bank representative meet in the presence of a referee that is appointed by the court.

Keep you protected during the lawsuit

Banks are run by humans, and since humans are prone to errors, your foreclosure can be a result of the bank’s mistakes. But Queens foreclosure attorneys can fire back at the bank if the foreclosure is a result of a mistake.

Aid in filing Chapter 13 bankruptcy

If your lender rejects your loan modification request, then you don’t need to panic, especially if you have Queen’s foreclosure lawyers by your side. A good foreclosure attorney will suggest you and help you in filing Chapter 13 bankruptcy.