When you fail to pay massive mortgage payments, your dream home can quickly turn into a nightmare.
The U.S. housing market has proven resilient during the pandemic, and Alabama has been no exception. While Auburn and Opelika home sales positively increased during the pandemic, mortgage rates are continuing to rise.
These higher rates transform the once affordable asking price of a house, into a dangerous growing expense for homeowners.
Because higher interest rates make mortgages less affordable on a monthly basis, it can quickly cause you to fail to pay your mortgage at all.
Banks quickly act on payment failures, leading to a difficult process known as foreclosure. This is the legal process where your mortgage company obtains ownership of your home.
This process can produce long-lasting and stressful consequences, but it can be avoided.
When foreclosure is imminent, Auburn or Opelika Alabama residents may need a foreclosure defense attorney to avoid such a crisis.
Why Hire an Opelika Foreclosure Defense Attorney?
Knowing the options available to you when attempting to fight a foreclosure and navigating the technicalities of them can be daunting for anyone.
Hiring a foreclosure defense attorney can be the difference between sinking and swimming for you when navigating these dangerous waters.
From stacks of paperwork to multiple intimidating meetings, if you are caught in the vast legal landscape of foreclosure or if you are only beginning the process, a foreclosure defense attorney can change the result of foreclosure in some key ways:
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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Loss mitigation is the process of protecting homeowners from foreclosure. It refers to several strategies that could be employed to keep homeowners current on their mortgage payments while remaining in their homes.
Before beginning the process of receiving loss mitigation, homeowners will be required to submit a loss mitigation application.
This application includes personal information, property information, and mortgage terms. It may also require pay stubs, tax returns, and financial statements.
Without accurate information in each of these categories, foreclosure could still occur.
Without an attorney you would likely have no idea how to navigate loss mitigation in order to avoid foreclosure on your home.
There are many strategies that can mitigate loss. Some of the most common are repayment plans and forbearance plans.
If you missed payments due to sickness or job loss, repayment plans can be negotiated to add payments to make up for the payments missed.
Forbearance plans allow the homeowner to make reduced payments for a specific period of time. These allow you to get out of a financial hardship and can put you in a position to negotiate new repayment plans.
Modification of Your Loan
Loan modification is a change in the original terms of your mortgage loan. In order for someone to apply for this option, homeowners must provide financial information, mortgage terms, and the specifics of the financial hardship.
The accurate presentation of these requirements is crucial.
Foreclosure defense attorneys can ensure that all of your loan information is reported correctly, so that you have the best chance of modifying your loan.
There are various ways that your loan can be modified. Some of the most common modifications are:
This is the most common method of loan modification.
Banks modify a homeowner’s existing mortgage payment to a more affordable amount (though you will usually have to pay more in the long run). This can lessen financial stress and place you back in good standing with the bank.
Length of the Loan
Length of a loan is another consideration in the loan modification process. Rather than decreasing the overall payment, banks can lengthen the repayment period in relation to a homeowner’s financial situation.
With all mortgages, homeowners pay back a portion of the amount borrowed plus interest every month. In this method of loan modification, these interest rates can be altered to lower percentages, creating a more affordable total payment.
David S. Clark–An Auburn/Opelika Foreclosure Defense Attorney
Facing the threat of foreclosure is a scary and difficult process to navigate, but you don’t have to do it alone!
David S. Clark is a dedicated Auburn/Opelika foreclosure defense attorney that will do everything in his power to help you avoid foreclosure.
Contact David S. Clark, Attorney At Law and get your free consultation today!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.