Foreclosure

The possibility of losing your home is one of the most stressful situations you may ever face. Your house is more than just the place where you live — it’s often where your sense of safety is rooted. When you receive a notice of foreclosure from the bank, you can feel like your entire life is being threatened, and often, such letters are preceded by vast financial hardship already. You may feel there’s nothing you can do in such a situation, but I assure you that there are options. Before you decide to passively accept a foreclosure notice, you should be made aware of the implications to follow. 

The Consequences of a Foreclosure 

Foreclosures negatively affect your finances in a variety of ways. One of the biggest penalties is likely to be a 250 - 280 point drop in your credit score. After such an extreme decrease, it could take two to three years of on-time payments  — at a minimum  — before your score is restored. Additionally, any time a debt is forgiven, it is considered a taxable event. Therefore, the amount of your loan will be calculated as taxable income. Furthermore, having a foreclosure on your credit report can hurt your chances of buying a home or landing a new job in the future. Fortunately, employers are at least required to notify you before conducting a credit check. 

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Fighting Back 

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. 

Minimizing Damages 

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. 

Foreclosure Attorney in Elyria, OH

If your foreclosure has led you to feel guilty or ashamed, know that situations aren’t always as they appear. I’ve seen many cases where foreclosure is the result of unscrupulous lending practices and just as many more involving honest, hardworking people who simply fell on unexpected hard times. Regardless of what has happened already, I will fight to keep your home and protect you in whatever way possible. Contact me to schedule your complimentary consultation.