Stopping foreclosure is in almost every homeowner’s best interest. A foreclosure may cause a person’s credit score to drop by hundreds of points, and it may leave them unable to qualify for a new mortgage for years to come. In this guide, readers will learn about their options when facing a foreclosure.
Loan Modification
A mortgage modification may be used to change the terms of the original loan, with the goal of making the monthly payment more affordable. Typically, missed payments are spread out over an extended period. To qualify for a modification, the lender will want to see proof that the borrower can actually pay them.
Forbearance
In forbearance, the servicer agrees to suspend or reduce the monthly payment over a predetermined period. After that time has passed, the borrower must start making regular payments plus an extra amount to catch up. Much like a loan modification, the lender wants to see that the borrower can repay the loan.
Selling the Home
It’s possible to sell the home, pay off the loan, and stop foreclosure. If there’s sufficient equity in the home, the borrower may even walk away with some money. Selling a home quickly may require a substantial discount, and it’s not always possible to get it sold before the foreclosure goes through.
Deed in Lieu
With a deed in lieu of foreclosure, the owner voluntarily deeds the property to the mortgage lender in return for a release from obligation. However, some lenders may try to get borrowers to deed the home back without canceling the debt. For such reasons, it’s best to consult foreclosure lawyers in Wellington FL before signing or accepting a deed in lieu agreement.
Filing for Bankruptcy
When a homeowner files for bankruptcy, they create an automatic stay that temporarily stops the foreclosure. Depending on their situation, a borrower may sell their home or work with the lender to create a payment plan. Some forms of bankruptcy erase all outstanding debts.
Many in the industry offer only one solution to stop a foreclosure, but that’s not the case with Foreclosure Lawyers in Wellington FL. These attorneys will work one-on-one with each client to help them find the right foreclosure defense. Contact us to learn more or to request a consultation.
