Foreclosure Help

Foreclosure Help

Foreclosure help can be essential for homeowners attempting to avoid foreclosure and save their homes.  One of the biggest mistakes homeowners make is waiting too long to get assistance with this stressful process.  When should homeowners seek foreclosure help?

Preparing a Loan Modification Application 

Foreclosure defense is not about getting a free home; foreclosure defense is about getting an affordable loan payment.  A loan modification is the general way to obtain this relief from a mortgage lender.  Applying for a loan modification, however, can be a complex process, requiring enormous paperwork and follow-up phone calls with the loan servicer.

A homeowner does not need a lawyer or other professional to help with this process.  However, if a homeowner does it on their own, they need to keep up with the paperwork requirements and do the application correctly.  If the homeowner does not have the time or interest in preparing an application, they should absolutely get the help of a reputable professional for this process.  The Massachusetts Attorney General’s Office is one good resource for seeking such assistance, and there are other non-profit organizations around the state who similarly help with loan modification applications.

Problems With The Review of a Loan Modification Application

If a homeowner is having trouble with a loan modification application, foreclosure help is a must.  Often, a lender’s repeated failure to properly review one of these applications, by “losing” paperwork and coming up with bogus reasons for denial, can be grounds for legal action.

Imminent Foreclosure Sale Date

A homeowner with a imminent foreclosure sale date should likewise obtain foreclosure help, mainly through an attorney.  An attorney can help a homeowner understand options available for stopping a foreclosure and see if a permanent resolution to the problem can be reached.

After a Foreclosure Sale

In my opinion, foreclosure help is an absolute must for any homeowner who has already been foreclosed.  A foreclosure defense attorney can help a former homeowner determine if there are grounds to rescind or buy back the foreclosed property.  Even if the homeowner has no interest in staying in the home, an attorney can be incredibly helpful in ensuring that the homeowner’s rights are protected, and avoiding an additional liability.

If you find yourself in need of foreclosure help, contact me for a consultation.

What is a Deed in Lieu of Foreclosure?

Understanding what is a deed in lieu of foreclosure is important for knowing all of a homeowner’s options available for foreclosure defense.

Foreclosure defense isn’t always about trying to keep a home.  For some homeowners, getting rid of their home and avoiding foreclosure is a better option than attempting to save a home that the homeowner is not able to afford.  Foreclosure defense is not about getting a free home; if a homeowner has no means to afford a modified mortgage loan payment, foreclosure is almost always inevitable.

With a deed in lieu of foreclosure, the homeowner voluntarily conveys the home to the bank or lender.  The homeowner no longer owns the home, and the bank or lender becomes the record title owner.  This is the same result that occurs in a foreclosure, with the exception that no foreclosure occurs: the homeowner has instead voluntarily given up the property.  A deed in lieu of foreclosure helps a homeowner avoid the stress, hassle, and stigma of foreclosure, and lets them get rid of the property on their own terms.  For a bank or lender, a deed in lieu of foreclosure saves the time and expense of having to do an often lengthy foreclosure proceeding.

Banks or lenders will generally only consider a deed in lieu of foreclosure if there are no encumbrances on the property, such as a lien or second mortgage.  A foreclosure, with few exceptions, provides a foreclosing entity with a “clean” title: all encumbrances second to the lender’s interest are wiped out in a foreclosure.  In contrast, if a lender accepts a property with a lien on it, this lien remains on the property, making it difficult to resell.

Homeowners interested in a deed in lieu of foreclosure can contact their loan servicers to see if this option is available to them.  Compared to a loan modification, a deed in lieu of foreclosure is generally a straightforward process.  Homeowners, however, should still speak with an attorney to review their paperwork and ensure the process is done to their advantage.  It is important, for example, that any potential deficiency judgment coming from the deed in lieu of foreclosure is waived by the lender, and the tax consequences of one of these deals is considered.