Foreclosure defense may be a new concept, but it is getting popular in light of increasing foreclosure cases in the United States. It is evident from the share of housing units with a foreclosure filing, which was 0.51 percent in 2017. Moreover, a growing number of successful cases have provided hope to thousands of homeowners to defend their rights. In addition to that, many financial institutions have assumed unorthodox and unaccepted practices pertaining to mortgages and foreclosures, which inadvertently provided homeowners motive and further grounds to file a case in an event of a foreclosure notice.
Using Loan Modification as a Foreclosure Defense
A foreclosure defense refers to a legal strategy that is employed by a foreclosure defense lawyer to protect interests and rights of their clients. The ultimate goal of any foreclosure defense strategy is to provide evidence to the court that your bank or lending financial institute does not have a lawful right to foreclose.
Mainly, the probability of winning the case depends upon the circumstances and facts pertaining to your case, however, the ability of your attorney to challenge a policy or contractual agreement that a financial institute is using to initiate foreclosure may also have a significant impact on the outcome of your case.
There are many strategies that can be used by an attorney such as short sale or bankruptcy defense, to name a couple. However, one of the simplest and most effective strategies is a loan modification. In this arrangement, terms of mortgage payment may be negotiated to make it affordable for a homeowner to keep up with their loan obligation every month. This may be achieved by:
- A decrease in mortgage’s interest rate
- A reduction in mortgage’s principal amount
- A write-off or reduction of penalties for non-payment
- Elimination or late fees for late payment
- A reduction in monthly mortgage’s payment
- An extension to make missed monthly payment
- An extension of the total duration of mortgage payment.
There are some instances where homeowners themselves are able to renegotiate the mortgage terms with financial institutions. However, a majority of lenders may be unwilling to consider an opportunity to renegotiate terms with homeowners who are suffering from financial distress. Therefore, obtaining the service of a seasoned foreclosure defense lawyer may be highly beneficial for your case. Your attorney will be able to use their comprehensive knowledge and persuasive skills to better renegotiate with your bank and may suggest you other alternatives in case loan modification is not on the table to protect your rights.
If you wish to get more information about this subject or schedule a free consultation, contact Jackson Abdalla Law Group at (773) 550-3853 to speak with an experienced real estate lawyer.