Deed in Lieu of Foreclosure
When a homeowner willingly gives name of the property to some mortgage company is a deed in lieu of foreclosure. In order to avoid the consequences of a foreclosure, an action in lieu of foreclosure could help some of the homeowners who are keen on walking away from the property. Often lender’s will accept a deed in lieu of foreclosure because it can bring closure to the matter more efficiently than filing for foreclosure and save them money on legal fees.
The homeowner and mortgage company agree to sell the home for less than the amount owed on the mortgage in a short sale. For homeowners who have no equity in the property – short sales may be a good option and want to abandon the home without going through foreclosure. To homeowners, short sales are valuable because they are able to walk away from the property without a lengthy legal battle and can reduce the damage done to their credit score.
To one or more of the terms of your mortgage agreement – a loan modification creates a permanent change. Also a loan modification can lower your monthly payment by reducing your interest rate, eliminating late fees, lowering your principal balance and extending the time to repay. Loan modifications are intended to offer homeowners a long-term solution to their mortgage problem.
But, obtaining a loan modification is not always a easy and straightforward process. You should not go through the process alone if you are seeking a loan modification. Competent legal representation can raise the chances of the lender approving your request and make the terms of the modification more positive to you.
A reorganization bankruptcy is chapter 13; it gives you the chance to reorganize your debt into a more manageable payment. Additionally, it may provide up to five years to catch up on missed mortgage payments without being charged extra interest from your lender.
Also Chapter 13 may let you to remove a second mortgage from your home. If you have two mortgages on your house you may be able to remove a second mortgage in bankruptcy and your main mortgage exceeds the present market value of the property. And once the mortgage is removed from the property, it will be treated like any other unsecured debt in the bankruptcy.
The court will automatically enact a stay when you file for bankruptcy. The stay requires all collection actions against you to stop right away. Collection agencies and creditors won’t be able to contact you, repossess your property or garnish your wages while the automatic stay is in effect. So, the stay on foreclosure can give you time to put in order your finances and rise a legal challenge to the foreclosure.
Fight the Foreclosure
You have many legal rights as a homeowner that you can assert against your mortgage company. With aggressive and skilled legal representation you may be able to stop the foreclosure and even productively countersue your mortgage company. All home foreclosure actions must be administered by a court under Florida foreclosure law and follow all of the essential court procedures. The lender will have to go to court to foreclose on your home, and that gives your attorney a chance to prepare and raise legal defenses on your behalf, and countersue your mortgage company. For example, if there have been some violations in lending laws and practices you may be capable to stop the foreclosure and productively sue your lender for their lending violations.