What Are Your Options When Facing Foreclosure?

Posted .

Not so very long ago, the outcome of a legal foreclosure proceeding was largely predictable; and, more often than not, it was likely that a homeowner who defaulted on his or her mortgage loan would overwhelmingly lose that home to the lender. The foreclosure–and the foreclosure process generally—mostly favored lenders and banks s because those institutions had well-informed and experienced attorneys fighting on their behalf.

Lately, however, the number of homeowners facing foreclosure who have been able to retain his or her home has been growing steadily. This is due in large part to the many more options available to consumers, therefore increasing the odds at being able to stay in the home and getting the mortgage back on track.

If you are facing foreclosure, it is highly advisable to consult with an experienced foreclosure defense attorney. A good foreclosure defense attorney will explain legal terms in clear, non-technical language and will guide you through the entire foreclosure process. He or she may also present you with options or solutions that you may not have otherwise known were available to you. Some of these options may include the following:

1. Repayment Plans

A repayment plan is a suitable option for homeowners who had faced a short-term financial crisis, but are now gradually recovering.

If the lender has already started the foreclosure process, the homeowner may request to restructure or modify the repayment schedule,. This option will temporarily stop the foreclosure and therefore allow a homeowner time to get caught up. . Moreover, a good foreclosure defense attorney will assist you in negotiating with the bank in the development of a more flexible and manageable mortgage e repayment schedule. .

2. Loan Modification

Another way to avoid foreclosure is to ask the lender to modify your mortgage loan terms. This option is suitable for homeowners who have experienced a decline in their income and who are unable to afford to continue to make payments at the current rate. There are several ways a lender can modify your loan terms, which include extending the loan period, lowering the interest rate, reversing bank fees, or including the bank fees but adding those fees to the principle mortgage loan amount.

3. Short Sale

One of the most preferred and widely-used solutions to avoid foreclosure is the short sale. If your home’s worth has decreased significantly due to a decline in the real estate market, this may be a good option for you. . In other words, if the amount you owe on your home has become greater than the actual value of your home, selling it to clear off your debt is now a viable option.

4. Forbearance

This option stops the foreclosure proceedings for a certain period of time and is best for homeowners who are using other debt relief efforts

Consult with a Local and Experienced Real Estate Attorney Today

If you are facing a foreclosure and want to know the best way to save your home, you should contact one of the friendly and experienced foreclosure defense attorneys at the Jackson Abdalla Law Group. For more information, or to schedule a free consultation, please call (773) 550-3853. We serve clients throughout the greater Chicago area, and we look forward to serving you too.

Leave a Reply

Your email address will not be published. Required fields are marked *

1 × four =