Mortgage foreclosure Defense: An Option worth Exploring

If you need to stop or stall foreclosure on your home, you may opt for mortgage foreclosure defense over filing for bankruptcy. Foreclosure defense may give you enough time to bring your loan out of default, sell your property, or take other action. It may also lead to a well-negotiated mortgage modification.

What does Foreclosure defense entail?

Once you’ve been served notice of a foreclosure action, your attorney can file an answer and raise all applicable legal defenses available to you. Foreclosure defense can also include negotiating with the mortgage lender. In situations where the lending institution has violated the law in pursuit of foreclosure, your attorney can act more aggressively by suing the bank, for example. The purpose of mortgage defense is to compel the banks to follow the proper procedures and honor their agreements.  It is not always easy to find violations because some may be very small errors.  It is important to know that as a homeowner, you have rights that protect you from unwarranted foreclosures.

Foreclose defense can be a better option than filing Chapter 13.  It basically depends on your financial state and your personal goals.

Comparing foreclosure defense to Chapter 13

If your finances permit you to continue making your monthly loan payments for a considerable amount of time, foreclosure defense may be appropriate for you. The process may allow you to remain in your home while you put your house on the market or make arrangements for a short sale. Foreclosure defense may encourage a settlement or a loan modification with your lender. You may settle on terms more favorable through foreclosure defense or accept a payment offer from the bank.

In contrast, filing a bankruptcy under Chapter 13 may be the appropriate route when you are behind on your mortgage payments and only have enough resources to keep your mortgage current. Chapter 13 allows you to tack the arrearage of your loan onto repayment plan. Under a Chapter 13, your repayment plan may extend between 36 to 60 months.

Speak to our attorneys at Harold Shepley and Associates to analyze your finances to determine the best way to resolve your mortgage loan debt. We offer free consultation, so you have nothing to lose but your debt.

By Harold Shepley | Published September 13, 2013 | Posted in Foreclosure | Tagged foreclosure defense, mortgage foreclosure | Leave a comment