Moss Sidell
How To Avoid Foreclosure
Sidell Law Offices, P.C. knows that every homeowner should research and know how to avoid a foreclosure. Different states have different timelines and procedures. Sidell Law Offices, P.C. is aware that the end results of foreclosures are pretty much the same in all states, however – the key is to act early rather than waiting until things have escalated past the point of no-return.
Sidell Law Offices, P.C. explains that many homeowners don’t realize that they can take steps to avoid foreclosure even before they miss a single payment. In the past, lenders were slow to open discussions until the account was already delinquent. With more and more mortgages going into default, however, most banks are willing to negotiate terms before the situation becomes critical explains Sidell Law Offices, P.C.
There are several ways to forestall foreclosure
The first is to ask for a forbearance. This is simply extra time to make up your payments, and is a great option if you just encountered a little hitch in your finances such as unpaid leave due to a medical or family emergency, or a gap between jobs recalls Sidell Law Offices, P.C.
In some cases (especially if your mortgage payment is very large) the bank will allow you to divide the overdue payments and add a small portion to each month’s bill until it is caught up. Alternately, they may let you simply add the payment to the end of your loan and pay it then recognizes Sidell Law Offices, P.C.
If you financed your home with an adjustable interest rate when rates were low, or a fixed rate when they were high and climbing higher, a lender may approve a loan modification that reduces your payments by lowering your interest rate states Sidell Law Offices, P.C. An arrangement may also be negotiated to have the life of the loan extended, so the total amount due is spread over a longer time period making your payments lower.
If you can’t make up your missed payments, you may need to consider getting out from under your home loan. You can sometimes sell your home before it goes into foreclosure – this is a great option if you have a buyer and some equity that will let you come out ahead or at least break even goes on to explain Sidell Law Offices, P.C. If you owe more on the home than it is worth (called an upside down mortgage) you may still be able to get the lender to approve a short sale, meaning they agree to let you sell the house for less than you owe and call it even without coming after you for the balance recognizes Sidell Law Offices, P.C.
Sidell Law Offices, P.C. knows that in some cases your lender can be convinced to let you sign the deed back to them and walk away owing nothing (a deed-in-lieu of foreclosure) – this is a last ditch effort, however, as the bank doesn’t want your home – they’d rather have the payments.
Knowing how to avoid foreclosure can save you from the humiliation of having your home simply taken. Sidell Law Offices, P.C. knows that the best path is to find an attorney familiar with real estate law who can help you work your way through the legalities and find a solution that works for you.
Moss Sidell 