Often, the first method of defense involves asking for a forbearance and requesting the lender to provide a copy of the promissory note. After all, a foreclosure has no legal basis without written proof, and you’d be surprised to know how many lenders do not have record of the original agreement. See, during the housing boom, crooked lenders underwrote a high number of loan documents, only to later sell them for profit or misplace them entirely. It was a common get-rich-quick scheme at the time, and many lenders put little forethought into their actions. Now, some cannot even locate their initial mortgage notes.
Additionally, an attorney can prove that the terms of the mortgage were unconscionable or demonstrate that the foreclosing party made an error or neglected to follow state procedures. Bankruptcy is also an option to explore, as it can forgive your debt and allow you to keep your home. With an experienced foreclosure attorney on your side, there are a number of ways in which you can fight to keep your home.
If there’s no way out of losing your home, or if you simply want to be free of an unaffordable mortgage payment, an attorney can also assist you in working the terms of agreement in your favor. You may be able to quickly sell your home before it is auctioned off, keeping your equity in the process. Another common tactic is to negotiate a short sale or a deed in lieu of foreclosure. In both of these arrangements, you agree to hand over ownership of the home without additional payments or a formal foreclosure, eliminating the long-term toll a foreclosure can take on your credit score and your life as a whole.
Truthfully, without analyzing your unique case, there’s no way I can adequately explain all of your options, let alone determine which one would be best for you. Thus, I invite you to schedule a complimentary consultation at my firm. Then, we can evaluate the details together and select the most effective method of resolution.