How to Stave Off Foreclosure & Stay in Your Home
Foreclosure is the process by which mortgage lenders, usually banks or credit unions, attempt to recover the loan balance from the homeowner/borrower who has failed to make payments. The owner will forfeit their rights to the property, and, if the remaining debt cannot get paid off in time, the property will go up for auction.
Next to health insurance, keeping your home should top your list of priorities. So, if you are forced into a position where foreclosure is looming, there are a few things you can do. The Philadelphia tax attorneys and foreclosure lawyers at Tadross Law understand the struggles and consequences of foreclosure and have a few suggestions that can help forestall or wholly prevent what might seem inevitable. Read on to learn more:
- Pay off Your Debt or Strike a Deal
This is self-explanatory – and is easier said than done in many cases. However, if you have the funds, make the payments. If you do not have the money at the moment, speaking candidly with your lender about your temporary financial problems (pay cut, layoffs, medical expenses, etc.) and requesting a reduced or late payment could be the answer. If your financial issues are more permanent, consider the next suggestion.
- Loan Modification Services
If you are struggling to make payments, then having a Tadross Law foreclosure defense lawyer present to speak with your lender about working out a more favorable payment plan might be a good choice. In general, most banks would rather find a way to keep the money coming in from the borrower than to take on the responsibilities of ownership and selling the property.
- File for Bankruptcy
Although not a preferable alternative for many homeowners, filing for bankruptcy can pause the foreclosure process. Federal law ceases all collection activities by lenders after your file a bankruptcy petition, so you have some additional time to get your finances together before it goes to court. Consult with a Chapter 13 or Chapter 7 bankruptcy attorney in Montgomery County, PA, at Tadross Law, to discuss whether this is your best solution.
Usually, the foreclosure process takes anywhere from four months to a year, so you can stay in your home until the sheriff’s notice to vacate is posted. However, if you wish to circumvent foreclosure and remain in your home, take some time to look over your finances, your deed, and any loan documents you have, consider the options above, and bring in the right legal assistance.
To learn more about foreclosure and the best foreclosure avoidance options, call Tadross Law today for a consultation!