Your home is a critical and integral part of your life. Not only is it one of the most significant financial investments you will ever make, but it is alsothe place where you and your loved ones spend most of your time. Keeping this thought in mind, the idea of losing your home to foreclosure can be a terrifying one.
Unfortunately, foreclosure does happen. When a homeowner cannot keep up with payments, the creditors will act to gain possession of the property. Even if there is a legitimate reason for failing to make mortgage payments, such as getting fired, medical disability, or excessive debt, a homeowner can lose their house.
Fortunately, there are ways to fight foreclosure. It is just a matter of having the right amount of legal expertise on your side. That is why contacting an attorney early on in the foreclosure process can make all the difference.
Understand How Foreclosure Can Impact You
When you contact a foreclosure attorney, they will help you understand the real-world impact of this process. There are several detrimental consequences that you want to avoid if possible. They include:
- Being evicted from your home
- Sinking your credit score
- Having trouble getting new loans
- Owing money after the foreclosed property is sold
- Losing relocation assistance or opportunities to lease properties
- The stigma of foreclosure and not having a home
How You Can Stop Foreclosure in TENNESSEE
There are judicial and nonjudicial options when it comes to handling potential foreclosure. An attorney can help you understand what your options are and what works best for your scenario. The foreclosure process can be complicated, and rules vary from state to state, so having an attorney by your side can make a difference when it comes to successfully fending off the loss of a home.
Loan modification alters the terms of the mortgage between the lender and homeowner. The goal is to lower the monthly mortgage payments so that the homeowner can pay off the principal within their means. Of course, they must often show they are enduring financial hardship, such as disability or job loss, to obtain the modification successfully.
The US government offers two types of loan modification, including HARP (Home Affordable Refinance Program) and HAMP (Home Affordable Modification Program). HARP allows people to refinance through untraditional means to lower monthly payments and interests. HAMP will adjust your monthly payments until the amount is no more “than 31 percent of your monthly gross income.”
A successful loan modification can stop foreclosure—unless you are trying this strategy mere days before a foreclosure sale. Loan modification also has the added benefits of lower monthly payments, adjustments loan terms, and longer tenure of homeownership.
Mount a Defense
There are two strategies when it comes to fighting foreclosure: a technical defense and a substantive defense. The former relies on noticing and attacking errors in the foreclosure that invalidate the process. For instance, a technical defense may claim the mortgage lender did not provide proper notice to the homeowner about the foreclosure.Using the detection of procedural errors to protect yourself is not ideal, however. Mortgage lenders can circumvent them by correcting the procedure…and then you are back to square one.
A substantive defense focuses on the terms of the mortgage instead of the foreclosure process itself. For instance, a successful defense may argue that you have not defaulted on your payments. You may also try to provethe mortgage lender committed fraud while giving the loan.
There are many different ways to stop foreclosure. Making the payments or compromising with the mortgage lender are reasonable options; some lenders are willing to work with you. And keep in mind that these types of options preserve your credit score and homeownership.
You may also try to sell your home to keep its equity, or voluntarily give the house to the lender. The latter is known as “deed in lieu of foreclosure.” If worse comes to worst, you can try to postpone the legal proceedings.
Learn More About Foreclosure
Take back control of your home with Knoxville Bankruptcy Attorney. Thanks to decades of collective experience, they have the insight and savvy to put you in the best possible situation. You will feel confident in your actions and chances from the moment you contact them.
Foreclosure can be a harrowing process, but you don’t have to go it alone. Knoxville Bankruptcy Attorney have already helped countless people across Knoxville, TN, fight off foreclosure. Discover what they can do for you by scheduling a meeting with them today.