Your home is the most valuable property you own. Beyond its financial value, it also has significant emotional value for you and your family. Losing your home is almost unthinkable. This makes falling behind in mortgage payments something that every homeowner fears. When will the bank come calling, demanding the money it’s missing? And if you can’t pay that money, how long will it be until the bank files for foreclosure? If that day comes you have options to protect your home from seizure. Understanding your legal rights in foreclosure is important to protecting your home from being lost forever.
Understanding Your Legal Rights in Foreclosure
Thankfully, federal and state laws protect borrowers from predatory lenders. The foreclosure process is one example of this. According to federal law, you must be given early intervention options to prevent the foreclosure from being completed, and the lender must make all reasonable attempts to protect the continuity of the contract. Between these and other regulations, you are accorded all of the following rights:
- You must receive a pre-foreclosure breach letter within 36 days of missing a payment.
- You have the right to apply for loss mitigation.
- The lender must notify you of loss mitigation options within 45 days of missing a payment.
- You have the right to get current on the loan to stop the sale of your property.
- You may pay off the loan completely to prevent foreclosure.
- You may fight the foreclosure process in court.
- You may file for bankruptcy if you qualify.
- The lender must pay you any excess money from the sale after foreclosure.
Some of these rights require you to act to take advantage of them, while others are automatically enforced as part of the process.
The foreclosure process gives you plenty of opportunities to take care of your debt and return to your original contract.
Options to Stop or Delay Foreclosure
There are several options for stopping or delaying a foreclosure. You might even be able to take advantage of several of these options in combination to get the best results.
Forbearance Agreements
If your inability to repay your loan is temporary, you may be able to convince the lender to make a forbearance agreement. In these agreements, your payments are suspended or reduced for a short time. This doesn’t reduce your loan, though. It just means that your lender won’t take legal action against you for paying less than you should during the forbearance period. Once the forbearance period is complete, you must pay normally.
Additionally, the unpaid portion of your loan needs to be repaid at some point. Depending on the details of your agreement, that portion may be added over time to future payments or may come due after you pay the remainder of the full amount of the loan.
Are you worried that your home will be taken away from you in foreclosure? My law firm may be able to help you avoid losing your home. Contact me at (407) 749-0080 to schedule a consultation as soon as possible.
Loan Modification
If you are committed to repaying your loan but your income level is not as high as when you signed the loan, a loan modification may be able to help you. Typically, loan modifications increase the duration of the loan but lower the monthly payments. Any past-due amounts will be added to the debt balance. Once you agree to a loan modification, you will no longer be considered to be in arrears, and the foreclosure process will be over. You may need to put up additional assurances when negotiating a loan modification. Also, if your finances or income improve later, you might be able to negotiate another loan modification to increase monthly payments and decrease the remaining duration of the loan.
Repayment Plan
If whatever caused you to miss payments was temporary, but you don’t have enough spare money to immediately catch up with the loan payments, you may be able to get a repayment plan. This adds the value of the missed payments to future payments spread out over a year or so.
Bankruptcy
Bankruptcy may be the best way to keep your house if your finances qualify. When you declare bankruptcy, all attempts to recover debt from you must stop immediately, including any action on a foreclosure. Depending on your financial situation, bankruptcy might protect your home. However, this isn’t always a sure thing, and you should discuss this option with me before taking steps to declare bankruptcy.
The Importance of Seeking Legal Help
Whether my clients are drowning in student loan debt or being crushed by high mortgage payments, I help them find ways to recover and hopefully return to financial independence.
When it comes to foreclosure, I explore every option. I understand how important your home is to you and your family. I will work with you to find ways to keep your home. Over the years, I have negotiated with almost every bank that offers mortgages in Florida. I have good relationships with the mortgage companies and know how to get them to the negotiating table. Furthermore, I have an in-depth understanding of all relevant laws. Even when banks aren’t willing to negotiate, I know what legal levers to pull to give you every chance to rectify the situation and end the foreclosure process.
Get Help Stopping Foreclosure
Are you worried that you will lose your house in foreclosure? Have you already started to receive pre-foreclosure notices from the bank? Even worse, has the bank already started the foreclosure process? I want to help you keep your home.
Give me a chance to protect one of your most important possessions. Don’t wait after missing a payment. Contact my law firm at (407) 749-0080 immediately to discuss your legal options.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]
