Although the number of Americans behind two or more months on their mortgage payments have fallen below the 2 million mark for six consecutive months, an estimated 1.89 million borrowers had serious delinquencies of 60-days+ in August 2014, according to HOPE. It does not matter why you fell behind on your mortgage payments. Unless you negotiate otherwise, you will fall into default on your mortgage loan, which triggers the foreclosure process.
But do you need a lawyer?
If the court rules in favor of the lender, the bank has the right to take your home and sell it to pay off the balance of the loan along with associated costs and fees. Homeowners that have encountered any of the following issues or other matters that could potentially lead to the loss of their home need to seek the help of an experience foreclosure attorney.
Missed Mortgage or HOA Payments
Many mortgage servicers will begin making collection call to the contact number you provided beginning the second month you miss your payment. It is important that you take the call and try and work out a solution with the lender. During the discussion you should remain calm, explain the circumstances pertaining to the delinquency and how you intend to resolve the situation and bring your payment up to date.
The key is not to fall behind three months delinquent, which triggers the foreclosure process.
Unfortunately, many homeowners feel that once they fall behind three or more payments on their mortgage there is no hope will help available. Too many homeowners fail to respond quickly when they receive a notice of foreclosure. Some people fall into a state of denial and others become paralyzed with the fear of losing their home.
Many people are not aware that their homeowner association can take legal action to obtain a lien and foreclose on the home if you don’t pay your mandatory fees. Many HOA bylaws and state statutes allow the HOA to foreclose even if you are current on your mortgage payment.
High Mortgage Payments and Loan Modifications
If you are struggling to make your monthly mortgage payments because they are too high, you may be eligible for a loan home modification. A mortgage loan modification consists of an agreement between the lender and borrower to change in the original terms of the existing home loan. The payment can become too high for any number of reasons, including:
- Loss of employment
- Chronic illness or condition that drained your finances
- Large hike in your interest rate
The purpose of the modification is to make the loan more affordable and sustainable to a homeowner at risk of foreclosure. The borrower should end up with lower monthly mortgage payments.
Although the process seems simple, it can be problematic and fraught with pitfalls, such as lengthy delays or an outright denial of the loan modification. In fact, a lawsuit filed against the Bank of America accuses the company of denying qualified homeowners loan modifications. Furthermore, the claim alleges that the bank actually paid cash bonuses to employees to force borrowers into foreclosure.
If you intend to seek a loan modification or have experienced a long delay or denial, speak to a foreclosure attorney. Even if you owe more than you home is worth, which is often referred to as an “underwater mortgage,” you may still be able to obtain a loan modification.
In the event you do not qualify for a modification, you may want discuss other solutions with your lawyer such as a deed-in-lieu of foreclosure or a short sale.
Act Quickly When You Receive a Foreclosure Notice
Borrowers who have been served foreclosure papers or received any legal documents from their lender or mortgage servicer should take immediate steps to get the matter resolved. Foreclosure proceedings can be complicated and very unpleasant for any homeowner.
The first thing you should do is consult with a foreclosure attorney to gain an understanding of how the process works, what your rights are and strategies that will help save your most valuable asset.
