Foreclosure of your house is a scary thing. Not only do you have to find a place to live, but you lose out on the place that’s become your home. There are ways to fix this though. In order to find the best way possible, you should consult a professional immediately. They can help you save your home and spare yourself some time to prepare for the next step.
If your mortgage lender sues you, there are preliminary steps to take. Your attorney can assert a line of defense against foreclosure. They can assert counterclaims that may help protect you from losing your home. Attorneys may go through the process of requesting all documents in regards to the mortgage. They can also serve applicable motions to dismiss the action of foreclosure against you. Their help can guide you toward getting into a loan modification program.
New York state law requires parties to enter into a Foreclosure Settlement Conference when action is taken against a residential property. This allows for you apply for a loan modification. When you apply, the bank will review your financial ability to determine if you meet the guidelines for a government loan modification program or one provided by the bank.
When a loan modification takes place, it modifies the existing mortgage payment. Through this action, it may result in a lower interest rate, an extension of the loan term or a lower monthly payment. Whether the bank or the government issues the program, it should result in the dismissal of the foreclosure.
Another way to stop foreclosure on your home is to file for bankruptcy. This can stop foreclosure immediately by placing an automatic stay on your creditors. An automatic stay stops any of your creditors from contacting you in regards to the debt you owe them.
A short sale is another option to consider when facing foreclosure. For this option, a lender can agree to a loan payoff that is less than the value of the mortgage by your sale of the home. However, the lender must approve the short sale; it is not guaranteed.
The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.