RESCUING YOUR HOME

A variety of factors influence which course of action may be the best for your particular situation.  Additionally, your personal objective is also important.  You may wish to keep your home or you may wish to walk away from it without being sued for a deficiency judgment.

Much has come to light over the past several years concerning the conduct of all of those involved in the mortgage lending process.  "Predatory lending" is now common parlance.  We know now that the vast majority of the foreclosures that have shredded the American dream were inevitable.  The lenders and their accomplices often committed fraud and other crimes at the time the loan was made.  The greedy feeding frenzy of that industry has devastated our economy, leaving us consumers to the bear that burden for the next several decades.

Many families who have been victimized by illegal lending tactics have already been evicted from their foreclosed homes.  Unfortunately, many, many homeowners simply did nothing when their home were headed into foreclosure.  The lenders where thrilled to foreclose on those homes so to forever bury any possibility of those mortgages being scrutinized.

If you are having difficultly keeping up with your mortgage, you can either follow the paths of so many others before you directly into foreclosure and painful deficiency judgments, or you can get on the offensive to seek justice for you and your family.  Lenders, mortgage brokers, builders and appraisers, all had a duty to be honest and forthright to homeowners during the lending process.  Proper examination of the documents and facts almost always reveal some irregularity in the lending process, if not outright fraud.  These instances of wrongdoing are the facts used to turn the tables on the lenders who are now intent on seizing your home and filing a deficiency judgment against you.

Depending on your particular circumstances and objectives, here are some of the tools available to achieve a favorable solution to your mortgage and home ownership difficulties:

• Deed in Lieu of Foreclosure:  Your lender agrees to take your property without putting you through the foreclosure process and without filing a deficiency judgment against you.  You would also seek to avoid derogatory credit report remarks.  Waiver of a deficiency by the lender may have tax ramifications.

• Short Sale:  Your lender agrees to permit a buyer to pay less that what you owe as a settlement of your debt.

• Loan Modification:  Your lender agrees to change the terms of your mortgage to that which you can afford.

• Foreclosure Defense:  Filing a formal answer to the foreclosure action can permit you to remain in the home for several months.  This is a method of pulling equity out of your home as charges will accrue by the lender and its lawyers.  However, filing an answer to the foreclosure complaint will often cause a lender to be more willing to consider working with you to modify the loan or to agree to waive a deficiency judgment.  Additionally, if examination of the loan documents and facts concerning the lending process reveal irregularities or illegal conduct by the lender, your foreclosure defense may become a foreclosure offense.  Successful foreclosure offenses can even lead to a rescission of the loan whereby you keep your home and all interest payments are applied to principal.

• Bankruptcy:  Both Chapter 7 & 13 have certain benefits depending on your particular situation.  Chapter 13 has components especially helpful for keeping your home.  Again, however, a careful examination of your particular circumstances is necessary to determine if either a Chapter 7 or 13 is appropriate for you.  Of particular note is that bankruptcy combined with foreclosure defense, can be a very powerful tool in affording you precious time to remain in your home, often without any payment whatsoever.

Do not wait another day.  Start seeking answers now.  A proactive approach is imperative for maintaining all of your options.  We are here to help.  Call us at 954-267-9377 or use our online form to initiate contact with us: